Buying an insurance policy for your bike and renewing it regularly has its set of benefits. Just like buying groceries once a year is not sufficient in terms of your appetite, buying your bike insurance policy without renewing it is not feasible for your finances.
To encourage you more, we have compiled a few benefits that you can avail by renewing your bike insurance policy. Take a look:
#1 You get a discount on bike insurance premium
When you renew bike insurance policy in time, your insurer can give you a certain discount on the policy premium. Provided you had not raised a claim in the previous policy period, you will be eligible for a No Claim Bonus. This is considered to be the biggest discount possible as it can go up to 50% on the policy premium. NCB is conditional in nature. Thus, you have to meet certain prerequisites to be able to avail the discount. As said earlier, NCB can be availed if you do not raise a claim. To get a higher discount i.e. 50%, you should not raise a claim for 5 consecutive years. As soon as you raise a claim, the NCB cycle will reset, that is, the discount will drop to zero.
Another reason your NCB will drop to zero is when you do not renew two wheeler insurance in time. If your policy has been expired for more than 90 days, a fresh NCB cycle will begin when you buy a new insurance policy for your bike. Thus, with timely bike insurance online renewal, you can avail high discounts.
#2 Coverage remains intact
When you fail to renew bike insurance, you are vulnerable to a number of financial perils related to the damage of your bike and other entities. Timely bike insurance renewal ensures that you are covered against the following situations if you have a comprehensive bike insurance policy.
- Third-party Liabilities: Bike insurance financially protects you from third-party liabilities like injuries, property damage and/or legal liabilities. You do not have to worry about compensating the third party for their loss. Of course, not causing harm to others should always be a priority. But in case of an accident, you will be financially covered.
- Fire: Damages caused to your bike due to a mishap related to fire are also covered under the policy.
- Own Damage: Just like third-party liabilities are covered under a comprehensive policy, own damage, i.e damage to the insured bike is also covered. Your insurer will provide financial support in case your bike gets damaged. If you take your damaged bike to a network garage, you can avail cashless repairs.
- Personal Accident Cover: After a recent ruling, the death benefit offered on bike insurance is up to 15 lakh rupees. Thus, in the case of death or disability, expenses will be covered by the bike insurance company with the help of personal accident cover.
- Calamities: Your bike insurance policy will financially cover you against damages caused due to a natural or man-made calamity hitting the area. Natural calamities include earthquake, floods, landslides, etc. and man-made calamities include riots, vandalism, etc.
- Theft: You can have peace of mind against the theft of your bike. Your insurer will compensate you with the approximate current market value of your bike in case it gets stolen and the police are not able to find it.
Don’t forget to complete the bike insurance renewal process before the expiry date in order to avail the above-mentioned coverages.
#3 No fines or penalties
Buying an insurance policy for vehicles is mandatory as per the law in India. Thus, if you do not renew two wheeler insurance before its expiry, you will face fines and penalties. The fine for not buying bike insurance is 2000 rupees and/or imprisonment. Apart from not having a financial cover against liabilities related to your bike, you will have to pay fine or worse, face punishments.
Now that you are aware of the benefits of bike insurance renewal, buy your policy without further ado. Remember to always exercise caution while riding your bike.
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