Home / Two-wheeler Insurance / Articles / Is There A Grace Period Regarding Two-Wheeler Insurance Renewal?

Is There A Grace Period Regarding Two-Wheeler Insurance Renewal?

Team AckoJan 17, 2024

Share Post

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.

Grace

Contents

What is the meaning of grace period in online 2 wheeler insurance?
So, I have to pay fines if my policy has expired?
Hang on, what’s the point of a grace period then?
What’s the 90-day grace period regarding No Claim Bonus?
What’s the best way regarding grace period for two-wheeler insurance renewal online?
- Renew your two-wheeler insurance online

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 bike insurance 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?

Renew your two-wheeler insurance 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.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions. Explore More:

Explore more on bike insurance

New Bike Insurance

Bike Insurance Claim Settlement Ratio

Long-term Two-wheeler Insurance

Cashless Bike Insurance

Comprehensive Bike Insurance

Renew Expired Bike Insurance

Bike Theft Insurance

Electric Bike Insurance

Own Damage Bike Insurance

Old Bike Insurance

Scooter Insurance

Two Wheeler Insurance Claims

Bike Insurance Calculator

Compare Bike Insurance

Comprehensive Vs Third Party Two Wheeler Insurance

IDV in Bike Insurance

Third Party Bike Insurance

Best Two-Wheeler Insurance

seo_non_core_app_qr

Recent

Articles

How to Change Address in Passport – Step by Step Process

TeamAcko May 5, 2025

Height and Weight Chart for Indian Baby Boy

Roocha Kanade May 2, 2025

Height and Weight Chart for Indian Baby Girl

Roocha Kanade Apr 29, 2025

Rajiv Gandhi International Airport (HYD) - Hyderabad

TeamAcko Mar 14, 2025

Diu Airport (DIU)

TeamAcko Mar 5, 2025

All Articles

Topics

Baby Development

Baby Development

Want to post any comments?

Bike insurance prices starting at just ₹457*

Buy or Renew Two Wheeler Insurance in 2 Minutes ⚡

UID: 5676 | *T&Cs apply

Zero commissions, big savings

Looking to insure brand new bike?

UID: 5676 | *T&Cs apply

Check prices