Every bike insurance policy has an expiry date. Usually, bike insurance companies start sending renewal messages when the policy is about to expiry. Despite such reminders, policyholders fail to renew their policy in time. As a result, the policy expires. Now, this is where there might be some confusion. Is there a grace period? What happens if the policy is not renewed? Will the No Claim Bonus lapse? Read ahead to know details about grace period in online 2 wheeler insurance.

What is the meaning of grace period in online 2 wheeler insurance?

Usually, the term grace period refers to a second chance. You still have a second chance to perform a certain activity in the grace period without facing major consequences.

With regards to two-wheeler insurance, grace period is loosely defined. This means people can interpret it differently. There is no grace period with respect to the coverage of a two-wheeler insurance policy. The moment your policy expires, your insurance coverage comes to an end. However, there is a certain grace period when it comes to post-inspection policy renewal and retaining the no claim bonus protection cover.

So, I have to pay fines if my policy has expired?

Not only a fine but you can also land up in jail for riding a bike without insurance. The Motor Vehicles Act, 1988 makes it compulsory for all bike owners to insure their bike with at least a basic Third-party Liability policy. This means, you have to keep renewing your bike insurance policy from time-to-time to keep it active and stay on the right side of the law.

Hang on, what’s the point of a grace period then?

Some insurers might provide a grace period with respect to not increasing your premium rates when it comes to two-wheeler insurance renewal online. This means, they might overlook a gap of some days (after the expiry date) and allow two-wheeler insurance renewal online without inspecting the bike.

Usually, if there is a huge gap in two wheeler insurance renewal after expiry, insurers might want to inspect the bike before renewing it. Inspection can increase the bike insurance premium. Therefore, if you act quickly, your insurer might renew two-wheeler insurance without inspection.

What’s the 90-day grace period regarding No Claim Bonus?

No Claim Bonus (NCB) is a discount given to you by the insurance company for not raising a claim during the previous policy period. It is a sizeable discount as it can go up to 50% (for five consecutive claim-free years). This accumulated NCB (if applicable) will lapse if you fail to renew two-wheeler policy after 90 days have passed from the expiry date. Thus, there is a 90-day grace period (after expiry) when it comes to NCB.

What’s the best way regarding grace period for two-wheeler insurance renewal online?

The ideal scenario is to not get tangled in the ‘grace period’ web. The best thing is to renew your bike insurance policy before the expiry date. Renewing it 10 days before the expiry date is a good idea as it can give you ample time to compare, review and renew bike insurance. You have to renew bike insurance (or face legal hassles), so why not do it beforehand instead of relying on the grace period?

Two-wheeler Insurance Renewal Online

If you have gone through the above-mentioned points, you know that there’s no way out of renewing bike insurance. You have to do it if you want to ride your bike legally in India. And that’s just the mandatory aspect. The bigger reason you should insure and renew your bike is for comprehensive coverage. A comprehensive plan insures your bike against:

✓    Accidents

✓       Fire-related damages

✓       Man-made calamities

✓       Natural calamities

✓       Third-party liabilities

✓       Damage to own bike

✓       Theft

Renewing bike insurance takes less time than preparing a bowl of noodles! Just make sure to read the terms and conditions carefully before purchasing the policy in order to make an informed choice.

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