Team AckoOct 7, 2021
Your bike insurance policy is due for renewal or you might have forgotten to renew it on time. These could be some of the reasons why you have to buy/renew bike insurance. The Motor Vehicles Act, 1988 mandates every two-wheeler or bike owner to insure their vehicle to avoid breaking the law and pay penalties. Apart from being a legal requirement, what happens when you don’t buy or renew two-wheeler insurance? Read on to learn about the impact and disadvantages of a lapsed bike insurance policy.
While the vehicle insurance is one of the compulsory bike documents that you need to carry at all times, your two-wheeler insurance also covers you against financial loss against damages, theft, loss and covers any damages or injuries to a third party’s vehicle or property. It also includes accident cover for the owner-driver of the insured bike. It is not only mandatory but it covers your financial liabilities as well, which makes it important for vehicle owners to renew two-wheeler insurance before the expiry date. A lapsed bike insurance will not provide financial coverage for the aforementioned liabilities.
The insurance policy of your bike is deemed as lapsed two-wheeler insurance when you do not renew the policy after the completion of the grace period. When you have an expired bike insurance policy, your insurer is not bound to provide financial help in case of a bike-related mishap. This also implies that you cannot raise a claim against your bike insurance policy.
The coverage under which you have bought the policy expires in this situation. As a policyholder, you cannot avail the benefits provided by your two-wheeler insurance because you have not paid any premium to renew this contract with the insurance company. In case you face an unfortunate event like a bike accident, you will have to bear the entire expense related to the accident. Moreover, riding a bike without insurance is an offence in India, thus you will have to pay penalties as well.
The experience of buying or renewing bike insurance in recent times has evolved to cater to the varied needs of the policyholder. One of them is the online insurance experience. With the advent of digital technology, insurance companies are offering most of the service through the power of the internet. To renew lapsed two-wheeler insurance, following a few steps will ensure your bike insurance policy is renewed without any hassles.
You can renew expired two-wheeler insurance policy online and offline. The online method is a lot faster and easier to process compared to the traditional offline method. That said, you can either talk to your insurance agent or simply visit the insurance company’s website or their mobile app to renew the expired bike insurance policy. Below are the steps to renew your bike insurance policy online:
Step 1: Visit your insurance company’s website or its mobile app. Example: acko.com
Step 2: Enter a few details such as the policy number and date of birth to view your policy.
Step 3: Make the payment for the renewal of the bike insurance policy and complete your bike renewal process.
Or, you could choose the traditional offline method by paying the renewal amount at the insurance company’s branch. You will have to carry your policy document along with other supporting documents related to your bike insurance policy. The insurer will verify the documents and renew the policy.
People have been renewing their bike insurance policy offline ever since two-wheeler insurance was introduced. This method can be used by people who are not very comfortable with using internet-enabled devices such as laptops, or smartphones.
Renewing bike insurance offline can be time-consuming because a lot of paperwork is involved in the process. The policyholder first needs to apply for bike insurance along with the required documents. Then the insurer may ask for an inspection of the bike. If the inspection is approved and the insurance company agrees to insure your bike, you will receive the policy via post in a couple of days. Note that you are not supposed to ride the bike until you receive your bike insurance policy.
Buying or renewing bike insurance offline can also be costly as compared to the online process because of the operational costs and commissions involved.
The difference between renewing your insurance policy and renewing/buying two-wheeler insurance policy is that the former has not expired or lapsed, while the latter is when your policy has expired. Generally, insurance companies provide a grace period, which is usually 30 days, during which time you need to renew the policy. Besides, the NCB benefit is valid only for 90 days and after that, it gets nullified.
One of the biggest disadvantages is that any claim raised after the expiry date gets rejected. This is an important reason why you should renew your bike insurance policy within the stipulated expiry date. Below are the steps to renew/buy lapsed two-wheeler insurance online:
Step 1: Visit your insurance company’s website or their mobile app and login with your credentials. Example: acko.com
Step 2: Usually, the insurer’s web portal will let you know that the policy has lapsed or expired and may prompt you to renew it. Click on the renewal option and make the payment to renew your bike insurance.
With these simple 2-steps, you can renew or buy your lapsed bike insurance policy. Note that you may have to forego some of the benefits such as No Claim Bonus (NCB). Hence, check with your insurance company on what are the terms and conditions for renewing expired bike insurance.
If you don’t have bike insurance or if you don’t renew the two-wheeler insurance, there are several benefits that you may lose. You may face the below consequences if you do not have bike insurance or have an expired/lapsed two-wheeler insurance policy:
What Happens When You Fail To Renew Bike Insurance Policy On Time?
Every vehicle plying on Indian roads must have a motor insurance policy. If you are caught riding your bike without valid two-wheeler insurance, transport and traffic authorities will impose a penalty amounting to Rs. 2,000 and/or imprisonment of up to 3 months for the first offence and Rs. 4,000 and/or imprisonment of up to 3 months for the second offence.
When you do not raise a claim for the first year, you get the benefit of NCB, a discount for not registering a claim and for riding safely. However, when you do not renew or buy bike insurance after 90 days of the expiry date, you will lose the discount. The discount goes up to 50% when you do not raise a claim for five consecutive years. Also, if you would like to port your two-wheeler insurance policy to another provider, you still get to keep the bike insurance NCB and take advantage of the discount. That said, you cannot port the insurance policy if it is expired/lapsed.
While the Third-party Liability policy covers your financial liabilities towards damages/injuries of the third-party’s vehicle or property, the Comprehensive bike insurance policy covers you against damages, loss or theft of your bike as well as third-party liabilities. If you are riding without a bike insurance policy or an expired/lapsed insurance policy and meet with an unforeseen accident, you can get into legal issues. Also, you will have to bear the repair bill or hospital bill, which could have been paid by the insurer if you had insured your bike.
Renewing a lapsed bike insurance policy is a lengthy process. You may have to go through the entire process of buying new two-wheeler insurance all over again. You may have to get your vehicle inspected by the surveyor before an insurance cover is offered by the company. Also, you will lose out on the NCB discount and pay a higher premium.
With bike insurance, you have a financial safety net in case of several unfortunate events related to the bike, for example, accidents, bike theft, damage to the bike due to a natural calamity, etc. However, you void yourself of this financial security by not renewing your bike insurance policy in time.
While insurance companies do send out reminders to renew your bike insurance policy, there may be situations when you may forget to renew it. Here are some of the ways you can avoid lapses in two-wheeler insurance renewal:
Sign up for SMS or email alerts to keep you informed about the expiration date of the bike insurance.
Opt for online bike insurance, which reduces the time taken to visit a branch to renew the policy. Online bike insurance can help you process the renewal faster without any hassles.
You can set a reminder on any device that you frequently use. It may be your smartphone or laptop. Just set a simple reminder that will help you remember that your bike insurance policy is due for renewal.
Insurance companies may have a team dedicated to convey various messages to their policyholders. They can get in touch and remind you about the expiry date of the policy. Answer such calls and renew the coverage on time.
Other than calling, your two-wheeler insurance company may also send communications via email. They may send a reminder in your inbox. Thus, keep your inbox updated and check for new mails more often.
You might miss renewing the bike insurance policy despite notifications or reminders. However, you can renew it online, making the whole process faster and more efficient. Below are some of the advantages of online renewal of expired bike insurance:
Renew the policy from the comfort of your home or from anywhere. All you need is an internet connection. Log in to your account and get the insurance renewed.
No additional charges for online services.
Renew the bike insurance policy instantly.
Compare various vehicle insurance plans for your bike before you can buy suitable insurance coverage.
Get insurance policy documents instantly to your registered email address.
Online insurance providers will send regular updates and reminders about renewing the policy so that you do not forget to renew it on time.
If you renew your bike insurance policy well before the expiry date, you can enjoy continued coverage and avail discounts. You also need to keep in mind a few other things while renewing the policy. Here is a list:
1. Review The Coverage
Usually, the policy period of a bike insurance policy is of one year. This duration is enough for a person’s needs and situation to change. Thus, you need to review the coverage of your bike insurance policy on each renewal.
2. Add Or Remove Additional Coverages
Additional coverages or add-ons provide extra coverage that helps you to customise your bike insurance policy as per your requirements. Consider adding more coverage or removing the add-ons that you do not require.
3. Revisit The Terms And Conditions
An insurance company may update its terms and conditions occasionally. You need to make it a point to read the latest terms provided by the insurance company. Get in touch with your insurer if you are not sure where to find these terms and conditions.
Below are some of the common queries about the renewal of expired or lapsed two-wheeler insurance:
What happens when bike insurance expires?
Your bike may have to be inspected by the insurance company to renew the policy. Also, you may be asked to produce documents such as Registration Certificate, renewal notice sent by the previous insurance company (In case you want to transfer the policy), driving licence, etc. If you do not renew the policy before the grace period ends, which is usually 30 days, and if you do not renew it before 90 days, you will lose the discount (NCB) as well.
Which motor insurance is mandatory for 2-wheelers (bikes)?
The Motor Vehicles Act, 1988 mandates that all vehicles plying on Indian roads should be insured with the third-party liability insurance policy. While the comprehensive insurance is not compulsory, it provides complete coverage for your vehicle as well as third-party vehicles or their property.
Is online two-wheeler insurance renewal valid?
Yes. Online two-wheeler insurance renewal is valid. They are the same as the offline or traditional vehicle insurance with a lot of advantages compared to the offline method.
How do I know my two-wheeler insurance expiry date?
You can visit the government’s Parivahan web portal, enter the vehicle’s registration number and you can view the expiry date of the policy. Or, you can visit the website or the mobile app of the insurance company, login and get the details of the insurance policy.
Can bike insurance be renewed after expiry/lapse?
Yes. You can renew your bike’s expired or lapsed insurance policy. However, it has to be done within the stipulated grace period, failing which you will have to forego the discount (NCB). Also, the insurance company will inspect your vehicle and then renew the policy, which may not be the case if you renew it within the expiry date.
What is the purpose of inspection in case of a gap in two-wheeler insurance renewal?
When there is a gap in renewing a bike insurance policy, the insurance company may ask for an inspection because any type of damage can be caused to the bike when it was uninsured. Through inspection, your bike insurance company can differentiate between existing damages and new damages in case you claim against the policy in the future.
Will the premium increase if I miss the renewal of a Comprehensive Bike insurance policy?
Yes, in case there is a huge gap between the expiry date and the renewal date, your bike insurance premium may increase. This is because you may lose the discounts and benefits of the insurance policy. Additionally, you may have to buy a fresh insurance policy for your bike.
I tend to forget the expiry date of my bike insurance policy. How can I remember about renewing the policy in time?
You can ask for help from the bike insurance company. They will send alerts which will help you remember the date of expiry. Additionally, you can go through this section to learn about other ways of remembering the expiry of your two-wheeler insurance policy.
How can I ensure that I get the best services when I buy a bike insurance policy?
You can ensure that you get the best possible bike insurance services by choosing a reliable insurance company. If your insurer helps you at every step of the claim process, you may have to spend less time following up and getting the claim amount. Ask around for a good insurance company or you can visit the social media handles of multiple insurers and read reviews of existing customers to know the reputation of the company.
Will I lose my NCB discount if I renew my bike insurance policy 3 days after its expiry?
No, you will not lose the NCB discount if you renew the policy within 90 days of expiry. However, it is not advised to wait for so long because you will be using an uninsured bike. And doing so in an offence in India.
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