What is Covered During Your Bike Insurance Renewal?

Posted on: Dec 27, 2021 | | Written by:

What is Covered During Your Bike Insurance Renewal?

Published on December 24, 2021. EST READ TIME: 3 minutes

Why You Should Not Let Your Bike Insurance Expire!

The ongoing pandemic has compelled many people to switch to bikes from public transportation since the risk of transmission and infection is high when in a crowd. While that switch is a wise one, many people in India are riding their two-wheelers without valid insurance. Now, did you know that riding a motorcycle without insurance might result in a fine or even imprisonment? According to the Motor Vehicle Act of 1988, riders must have at least third-party liability cover in their insurance policy to ride on Indian roads. So, if your policy is about to expire or expired already, make sure you renew two-wheeler insurance as soon as possible. Now, read on to learn about the importance of two-wheeler insurance and what can happen if you are caught riding without one.

Importance of Two-Wheeler Insurance

When compared to other vehicles, motorcycles are more prone to theft or accidents. Riding a bike with comprehensive cover protects you financially against all the unfortunate events involving your bike. Bike insurance covers you financially if your bike incurs loss or damage due to natural or manmade disasters, fire or explosions, theft, accidents, and so on. It also covers medical expenses incurred in the course of your treatment.

In case your policy includes provisions for personal accident, or you purchase this cover as an add-on, the insurer will financially assist you or a family member in the event of permanent disability or death.

What Happens If You Fail to Renew Your Expired Two-Wheeler Insurance

Forget to renew two-wheeler insurance on time? Here are some of the unpleasant consequences you may face.

Regulatory issues:

Before you hit the road, remember that the Motor Vehicle Act of 1988 requires you to obtain at least third-party liability insurance. If you don't have it, the traffic police may fine you up to INR 2,000. In the worst-case scenario, the relevant authority may imprison you for three months. When you renew two-wheeler insurance, keep in mind that the minimal obligatory third-party policy does not include coverage for the bike's own damage. Hence, taking a comprehensive policy is recommended.

Loss of NCB:

No Claim Bonus (NCB) is a reward that your insurer provides you for going claimless during a policy period. It helps to lower your policy premium by up to 50%. You can carry over your earned NCB to the next year if you renew two-wheeler insurance within 90 days of its expiration date. Failure to do so within the grace period will result in loss of accumulated NCB and other continuity benefits. In addition, you won't be able to transfer the continuity benefits to another newly purchased motorcycle.

Unfortunate Events:

You are mistaken if you believe your insurer compensates you for a loss or damage to your bike during the grace period. The expense of bike repairs and maintenance as a result of an accident can be pretty high, and it has the potential to burn a hole in your wallet. As such, if you don't renew two-wheeler insurance on time and the accident occurs within or after the 90 days’ grace period, you are responsible for bearing the repair expenses.

Time Consuming Process:

Renewing your policy right before its expiry is super easy these days. To pay the policy premium, you only need to enter your policy number or registered mobile number. However, if you haven't renewed two-wheeler insurance after the 90 days’ grace period, you need to purchase the policy again. It means you will need to go through the policy purchasing process all over again.

Choose a trusted insurance service provider

So, as you can see, renewing two-wheeler insurance on time is wise and essential. Also, try to go for an insurer that offers instant coverage. Before deciding on the ideal insurer, check the claim settlement ratio, list of cashless network garages, and other policy benefits. Compare premiums and offers before selecting a trustworthy insurance service provider. To avoid any legal hassles or hefty repairs and maintenance costs that may arise due to an accident, renew two-wheeler insurance on time.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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