Steps to Renew Lapsed Bike Insurance Policy
Published on January 09,2020. EST READ TIME: 5 MIN
As per the Motor Vehicles Act, every bike owner must have third-party insurance. However, simply buying insurance is not enough. It is important to renew the insurance policy on time sincefailing to do sowill lead to a policy lapse. This can exposeyou toa series of risks and losses including the loss of ‘No Claim Bonus’. Therefore, it is important to renew the policy on time.
In this article, we will explain why it is important to renew your bike insurancepolicy on time and how to renew a lapsed insurance.
What do you mean by ‘Lapsed Policy’?
When an insurance policy is not renewed before its expiry date, it lapses. A lapsed policy holds no significance at all and it does not cover your vehicle for any sort of damage. In addition, all the benefits and rights associated with the bike insurance become null and void if you do not renew your policy on time.
Effects of Policy Lapse
Insurance companies offer a bonus period of upto 90 days for policy renewal. If your policy is not renewed within that time, the No Claim Bonusis forfeited. Also, if there is a premium hike for the policy in this financial year, the insurance company can charge you the new premium from the next cycle.
If your bike meets an accident after policy lapse, you will have to bear the cost of repair as well as the cost of all third-party damages. In order to avoid all this, it is important to renew the policy on time.
Steps to Renew Your Lapsed Policy
Thanks to digitisation, you can easily renew your lapsed policy online. Renewing an insurance policy online is fast and hassle-free. All you have to do is visit the official website of your insurance provider, select your plan, enter your previous policy details and vehicle registration number, select add-ons, make the payment and you are done.
Most insurance companies have not mandated vehicle inspection in case of online renewal, which saves a lot of hassle. There are no additional convenience charges for online renewal.
In case your policy is more than 90 days old, you need not furnish your old policy details. You can even change your plan or insurance provider if needed.
Buy a Long-term Two Wheeler Insurance Policy
Renewing insurance policies every year is not only cumbersome but includes the added risk of policy lapse. To avoid this, it is best to opt fora long-term bike insurance policy that is valid upto 3 years. When you buy a long-term policy, you are also protected from inflation rate as there will be no yearly change in the premium value. Also, you get better premium rates in a long-term policy as compared to a policy that needs annual renewal.
Regardless of how good a driver you are, it is always best to have a comprehensive bike insurance policy. And what is even more important is thetimely renewal of the policy to prevent it from getting lapsed. You can set reminders, opt for standing-instructions from a bank account, or buy a long-term insurance policy to ensure your policy never lapses.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.
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