Why is On-time Renewal of a Bike insurance Policy Important?
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Home / Two-wheeler Insurance / Why is On-time Renewal of a Bike insurance Policy Important?
All bike insurance policy in India comes with an expiry date, and hence, timely renewal becomes important. It is crucial to renew your bike insurance on time to stay compliant with the Motor Laws, as well as get uninterrupted financial protection against any odds that might take place on the road while you ride your bike. Read further to understand the benefits of renewing your bike insurance on time.
What is Policy Term?
In a two-wheeler insurance policy, the policy term refers to the period during which you will receive coverage for your bike against unforeseen events such as accidents, thefts, natural disasters, etc. While policy term can be both long and short term, it is important to renew the policy before the policy term ends.
Importance of Renewing Bike Insurance on Time
Listed below are some of the reasons why you should renew bike insurance on time:
Legal Compliance: If you do not renew your two wheeler insurance on time, and it expires, you are exposing yourself to penalties. As riding a bike with an expired insurance policy is a legal offence, you can be fined Rs 2000 and even get imprisoned for 3 months. Thus, on-time bike insurance renewal will save you from such penalties.
Financial Security: If you fail to renew your bike insurance on time and your bike gets damaged, the insurer will not cover the damage. The insurance policy is only valid when it is active. And failing to perform on-time renewal means the policy will expire and be considered inactive. As a result, you will have to pay for bike repairs from your pocket. Therefore, it is beneficial for you to renew the policy before its expiry date.
No Claim Bonus: NCB is a reward for going claim-free during the policy period. It is associated with the Own Damage component of the policy. You get a 20% NCB discount for the first year, and for continuous five claim-free years, the NCB can be up to 50%. However, raising a claim will bring the NCB down to zero. The NCB benefit stays accumulated for 90 days after policy expiry. It lapses after that. Primarily, you should renew the policy before the expiry date; for some reason, if you cannot do that, then do so during the above-mentioned 90-day period to benefit from the NCB.
Affordable Premiums: In case your policy lapses, the insurer may charge a higher bike insurance premium. To avoid paying a higher premium for your bike insurance policy, you need to renew it on time and stay protected against paying any extra amount.
Continued Coverage: To avoid gaps in coverage, you must renew your bike insurance policy on time. Failure to do so will result in discontinued coverage and penalties.
Enjoy Peace of Mind: When you know your bike is covered with a valid insurance policy, you can enjoy peace of mind and ride worry-free.
Better Policy Coverage: When you renew your bike insurance policy, you have the option to compare and choose the best policy available. This helps you get better policy coverage for your bike.
Saves Time: Renewing a bike insurance policy on time saves extra time and effort that would be spent renewing a lapsed policy. So, instead of letting the policy expire and renewing it, you must do the renewal on time and save additional efforts.
Things to Keep in Mind While Renewing a Two wheeler Policy
Keep the following points in mind before the bike insurance policy renewal.
1. Coverage: Before you renew your bike insurance policy, make sure you have the right coverage. For example, this is the right time to upgrade to a Comprehensive Plan from a Third-party Plan. You can also include add-ons or increase the number of add-ons as per your suitability while renewing the policy.
2. Discounts: If you have installed certified anti-theft gadgets for your bike’s security, you can get a discount from your insurer. This discount is only applicable to the Own Damage component. To avail such a discount, you need to install the devices approved by ARAI and also inform the insurer about the same.
3. Look for Other Insurers: During bike insurance renewal, you should also look for other insurers in case you are unhappy with your current policy. You can review your policy and select the best-suited policy for your two-wheeler.
Implications of Riding an Expired Bike Insurance Policy
Some of the implications of riding an expired bike insurance policy are as follows:
Fines of up to Rs.2000 or imprisonment of 3 months
No financial compensation in case the bike is stolen
No coverage if the bike is damaged
No coverage for third-party liability
Loss of No Claim Bonus
You might have to pay extra to renew an expired policy
Online Bike Insurance Renewal
If you are worried about missing out on the renewal date of your bike insurance policy, you can set a reminder beforehand and renew the policy online as it offers the following benefits.
The policy can be renewed in around two minutes.
No appointment or expert assistance is required to renew bike insurance online.
You can go through the policy’s details and make an informed decision.
Bike insurance policy can be renewed online at any time as the feature is available 24x7.
If you are stuck, you can reach out to Customer Care and seek answers.
Frequently Asked Questions
Here are some of the common questions and answers associated with on-time bike insurance renewal.
1) Will the premium increase or decrease while renewing the Comprehensive Bike Insurance Policy?
The answer depends upon the cover and claims. If you have enhanced the cover with multiple add-ons, the premium will increase. And if you have not raised any claim, you will receive a renewal discount and the premium will be on the lower side. Also, the payable premium will depend upon the extent of the enhanced cover and renewal discount.
2) Will be covered under the bike insurance plan if I forget to renew the plan for a day?
For that day, you will be uninsured. Your cover will resume once you have renewed the plan.
3) How will I come to know about my bike insurance policy’s expiry date?
The bike insurance policy’s expiry date will be mentioned in the Policy Document. The insurer will most likely send renewal reminder SMS and email a month before the expiry.
4) Is it okay to ride a bike with an expired insurance policy if you have a valid health insurance coverage?
Bike insurance and health insurance are totally different concepts. Bike insurance does have a Personal Accident component but it has more to do with covering third-party liabilities and damages to the bike. Thus, you will be penalised for riding an uninsured bike irrespective of having health insurance.
5) What are my options when it comes to making an online payment?
Usually, you can make an online payment using Internet Banking, Debit Card, Credit Card, and Online Wallets.
6) Will my NCB get affected if I do not raise a claim but repair the damages to the bike from my own money?
No, the NCB will not get affected as you have not raised a claim.
7) What will be the NCB if I do not raise claims for ten consecutive years?
The NCB stabilises at 50% after the fifth claim-free year. So, after ten claim-free years, the NCB will be 50%.
8) Can I renew bike insurance before expiry from a new company even though I did not buy it from there?
Yes, renewing bike insurance before expiry from a new company from whom you had not purchased the plan is possible.
9) Can I renew bike insurance before expiry from an online insurer even though I had purchased it from an offline one?
Yes, renewing bike insurance before expiry from an online insurer is possible even if you had purchased the plan from an offline insurer.
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