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Must-know Details About Break-in Period in Two-wheeler Insurance

Team AckoJul 22, 2021

Lives have become busier. People are finding it hard to achieve work-life balance. There is a project to be delivered at work and your kid’s tuition fees to be paid. Everything has a fast-approaching deadline and is on priority! Amidst all this, it is challenging to keep track of your bike insurance renewal after expiry. It is all right; some planning and you will sail through.

Break in Period in Two Wheeler Insurance

Read ahead to know details about the break-in period in bike insurance renewal process.

What is Two-wheeler Insurance Break-In Period?

A break-in period is the time between policy expiry and policy renewal. Suppose your bike’s insurance policy expires on 20th April, and you renew it on 10th May. There are 20 days in between the expiry and renewal where your insurance policy is inactive. That 20-day timespan is the break-in period.

Side Effects of Two-wheeler Insurance Break-In Period

The break-in period can affect you from a legal as well as a financial security perspective.

The Motor Vehicles Act, 1988 has made it mandatory for all vehicle owners in India to purchase at least a Third-party Liability insurance before driving their car or riding their bike on Indian roads. This makes it illegal to ride your two-wheeler during the break-in period.

Monetary penalties are levied on those who ride their two-wheeler without valid insurance. If the two-wheeler is involved in an accident where a third party is injured, then there are chances of legal hassles. Imprisonment is also a possibility.

  • Effect on financial security effect

Basic aim of insurance is to secure oneself against financial losses that might arise due to unforeseen circumstances. If your bike is involved in an accident or is stolen during the break-in period, you will have to incur financial losses.

Break-in period is as good as having no insurance; thus, you are not covered during the break-in period. Make sure to renew your policy in time and if you fail to do so, avoid riding your bike during the break-in period.

NCB Situation

Insurers provide a No Claim Bonus (NCB) to those who do not make a claim during the policy period. Even if you renew your two-wheeler insurance policy during the break-in period, there is a 90-day buffer to keep your NCB intact. You have the option of going for two-wheeler insurance renewal during 90 days from the policy expiry date to ensure that you are eligible for the NCB.

NCB is calculated as per the following table. If you do not renew your two wheeler insurance policy on time, you will miss out on discounts.

No. Of Claim-free Years Discount
One claim-free year 20%
Two consecutive claim-free years 25%
Three consecutive claim-free years 35%
Four consecutive claim-free years 45%
Five consecutive claim-free years 50%

Two Wheeler Insurance Renewal Online

Do not worry if you have missed the bike policy renewal deadline. You can renew your two-wheeler insurance easily online. Just a few clicks and your policy will be sent to your inbox.

When there is a break between two insurance policies, the renewed policy is termed as a break-in policy. Different insurers have a different take on this as far as vehicle inspection is concerned. Some might want to inspect the vehicle before insuring it while some don’t. It depends upon the time lapsed after the policy’s expiry date and the insurer’s process related to it.

Renew and Stay Insured

Insurers often send messages and emails when your two-wheeler insurance policy is about to expire. Setting a reminder yourself is also an option. If you are someone who makes use of planners and mobile apps related to daily schedules, you might want to include renewing two-wheeler insurance in your to-do list in advance.

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