Timely Renewal of Two Wheeler Insurance
Published on March 2, 2020. EST READ TIME: 5 MIN
Timely Renewal of Two Wheeler Insurance
Two-wheeler insurance in India is a mandatory cover that vehicles like bikes and scooters must have to protect themselves as well as the third party against accidents or any damages. While purchasing the insurance is mandatory, not many people tend to follow up with this practice and undermine the importance of timely renewal of their two-wheeler insurance. Let us help you understand the importance of renewing your insurance in a timely manner.
1. Coverage is Secure
If you are not up-to-date with your insurance, then you may run into a crisis where you are without any protection, both financial and legal. Renewing your insurance helps you cover most of the cost that will incur in order to repair your bike, saving you from spending a chunk of your savings. It also protects you against any theft, third-party liabilities, damage, etc.
2. Negate Break-in Policy
If you have fallen behind on renewing your insurance, you will have to go for a new insurance that will require the insurance providers to check your vehicle in its entirety. This process is known as break-in policy and if the authorities find a major or minor damage to the vehicle, then that will instantly raise the premium for you. Timely renewal avoids break-in policy as you continue with your existing plan.
3. Avoid Legal Implications
As per The Motor Vehicles Act, 1989, it is illegal to ride a vehicle without an active insurance policy. If you renew your insurance policy you will safeguard yourself against any litigation and avoid public offense and related fines and penalties.
4. Enjoy the Benefits of NCB
NCB or No Claim Bonus is a discount offered to the scarce use of your insurance. It is a reward that the insurance provider offers you for not making any claims for a certain amount of time. With a renewal process while not claiming any of it, you are making yourself eligible for the No Claim Bonus benefits. However, please keep in mind that the benefits of NCB can be availed only if you get your insurance renewed 90 days before the policy expiry date.
Impacts of Non-Renewal
What if you still choose to forego your bike insurance renewal? As discussed, by not renewing your two-wheeler policy, you are subjecting yourself to legal implications and penalties as you will be in direct violation of The Motor Vehicles Act, 1989. In addition to legal hassles, you are also making yourself financially vulnerable. Without renewal, you are liable to make third party compensations and pay for the damage that your bike sustains. This can be a major financial blow to your savings.
Going for Online Insurance Renewal
Insurance too has gone digital and today, you can apply for a new policy as well as renew your old one online. Here’s how online insurance renewal can help you:
● Saves Money & Time: You can check for deals online that can help you save money during your renewal process. Also, by renewing your policy online, you are no longer travelling to your insurance provider nor undertaking an exhaustive research process saving ample time.
● Effortless: A few clicks and taps is all that is required if you are renewing your policy online. No paper-work, no travel hassles.
● Equipped with Reminders: An online mechanism provides you with reminders in form of mails and also texts so that you stay updated with the process.
With policy renewal, you are taking a step towards a secure future for yourself as well as your precious bike and to safeguard you claims .
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.
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".