Renewing Lapsed Bike Insurance - Steps to Follow
Published on February 19, 2020. EST READ TIME: 5 MIN
A comprehensive two-wheeler insurance policy is basically a contract between the insured and the insurer where the insurer agrees to pay up to an agreed value for loss incurred by the insured due to thefts, personal accident, third-party damage, man-made and natural calamities, etc. Third-party two-wheeler insurance only pays for third-party damage and it is mandatory to have one as per the Indian Motor Vehicles Act.
By paying a small premium for the insurance policy, you can get covered for all kinds of risks mentioned above and more. However, for your two-wheeler insurance to give you protection at all the times, it is important that the policy is renewed before the date of expiry. There are many benefits of timely renewal and protecting your policy from getting lapsed.
What is Policy Lapse and What are the Consequences?
When an insured person does not renew the policy on time, it gets lapsed and all the benefits and rights associated with the policy becomes nullified. A lapsed policy is equal to having no policy and regardless of the premiums you have paid until now, you will not be eligible to make a claim.
The major drawback of the policy getting lapsed is that you lose your No Claim Bonus which you have incurred so far. Also, the Insured Declared Value (IDV) you will be getting for your two-wheeler will be low now considering that the vehicle is older compared to what it was earlier. And let's not get started on the risk you expose yourself to if your bike gets into an accident while the policy has lapsed. Therefore, to avoid this, it is in your favour to renew your two-wheeler insurance policy before it gets lapsed.
How to Renew Your Lapsed Insurance Policy?
There are two modes by which you can renew your lapsed insurance policy i.e. offline and online.
When you renew your policy offline, you will need to have all the valid document and visit the branch of the insurance company. Alternatively, you can also call an insurance agent to visit your home with the required forms. Once documents are received by the insurance company, they will begin the process of revewing your documents.
Since renewing a lapsed policy offline is similar to buying a new policy, your vehicle is subjected to inspection.
Renewing your policy online is easier than doing it offline. You can do it from the comfort of your home with just a few clicks. Here also you need to have the required documents like previous policy details, the vehicle's registration number, etc. handy for a quick, hassle-free experience.
You need to log on to the official website of the insurance company, enter your plan details, your personal and vehicle details, make payment, and you are done.
Once the payment is processed, the insurance company will email you the details of your renewed policy and policy documents.
Many Benefits of Renewing Policy Online
There are many benefits of renewing policy online as compared to doing it offline, such as:
You can compare different policy plans online to check if you wish to continue with the previous plan or buy a new one
You need not pay any middle-man fees
The renewed policy will be issued to you within a few minutes of payment processing
Most insurance companies do not mandate vehicle inspection when you renew your insurance online.
If the insurance is lapsed for long (more than 90 days), you need not furnish previous policy details.
In case you have any doubts regarding the renewal process, you can simply avail assistance from the insurer’s call centre
Buy A Long-Term Two Wheeler Insurance Policy
Most policy lapse happens because people tend to forget the renewal dates. Because of the issues people face during paying annual premiums and policy lapses, the Insurance Regulatory and Development Authority of India has now allowed multi-year two-wheeler insurance policies where your vehicle is insured for a period of three years under one premium
It not only prevents policy lapses but also helps you save money as you get freedom from annual inflation on policy premiums. Moreover, you are protected all the time.
A two wheeler insurance policy is a necessity that protects your vehicle against third party liability, thefts, and accidents. And for your policy to be active throughout , it is important to be attentive and careful enough to renew it before the renewal date. To ensure you do not forget the date, set reminders and the easiest, buy a long-term insurance policy.
This blog has been written by
Mukesh Kumar | Motor Insurance Expert | 36+ years of experience in insurance industry
A veteran in the insurance industry, Mukesh Kumar has the expertise of handling various functions like Business Development, Underwriting, Claims, Human Resources, Quality Management and Marketing. With rich knowledge of the industry, he loves to share his views on topics of insurance sector and takes special interest in educating people on advantages of having insurance.
Mr. Mukesh Kumar recommends "getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 6,800+ network garages, you can be assured of help in event of any damage to your vehicle
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.