Do you know why should you renew your two wheeler insurance policy on time? Riding two wheeler without insurance is a punishable offense in India. Minimum third-party insurance is compulsory to drive motor vehicles on Indian roads. So, if you have a two wheeler, it is ideal that you have a valid insurance policy and renew your two wheeler insurance on time.
Purchasing and renewing on time is a healthy practice and this helps you in many ways. It saves you from heavy fines and also gives you financial protection in case of any own damage and third-party damage.
Two wheeler insurance policy has validity for a certain period. Normally it is one year if you have taken a one-year policy and two years or three years in case of a multi-year policy. You need to renew your two wheeler insurance policy on time to avail of services continuously.
But if you do not pay the renewal premium to renew this policy on time then it gets lapsed and services are discontinued by the insurance company for the break-in period. Companies provide some grace period to renew the policy but if you do not renew further then you may miss the chance to renew the same benefits in your policy.
Disadvantages If Not Renew Your Two Wheeler Insurance
There may be many situations that you may face if do not renew your two wheeler insurance policy on time and it gets lapsed. And there may be many disadvantages of it. Some disadvantages of lapsed two-wheeler insurance are given below:
1- Heavy Penalty
As per the Motor Vehicle Act 1988, it is mandatory to have third party insurance for your vehicle. If you are riding your bike on the road without a policy then there may be a heavy penalty. From 1st September 2019 law is very strict now. If traffic police caught you riding a bike without valid insurance then there may be a heavy penalty. You should always renew your two wheeler insurance policy on time.
2- Third-Party Liability
Understand the reason behind the mandatory third-party insurance clause of the Motor Vehicle Act. It is optional that you purchase your own damage section of bike insurance but the TP policy is legally compulsory. Why so? Suppose you are going with your bike somewhere and you hit someone.
The property of someone else is damaged by your bike or someone died in your bike accident. Now, who will be responsible for the damage to another person? Obviously, you will be responsible because it happened on through bike only. Third-party insurance may safeguard you in this kind of situation legally and financially as well.
If you have proper insurance for your bike then the claim will be paid by the insurance company. The claim can be property loss or personal loss in both cases you will have protection through your two-wheeler insurance policy. Read your policy document for the terms and conditions.
3- Own Damage Loss
What if your bike gets damaged in an accident or stolen by someone? You will file an insurance claim, right? But what if got to know that the bike insurance renewal date went in last week? You forgot to renew it.
You have a financial hit in your pocket because you will not get any claim. The company has discontinued the insurance services because of not renewing them. So, never forget to renew your two wheeler insurance.
4- High Premium
Lapsed insurance policy has another disadvantage also. You may get charged a higher premium when you renew the policy after a very long period of expiry of it. An insurer does not provide you with a good discount on lapsed policy.
Some insurance companies provide no discount or lesser discount on those bike insurances in which a previous insurance policy is not available. Usually, the renewal premium of the continued policy is lower than the lapsed policy.
In some cases, the risk start date may be after three days of purchasing the policy (T+3). If you renew your two wheeler insurance on time, you may get a higher discount and save money.
5- Loss of No Claim Bonus
Your insurer provides no claim bonus rewards if you do not file any claim for the complete policy period. But what if you do not renew the policy on time? What if the policy expiry date crossed 90 days? You will lose your no-claim bonus if do not renew your bike insurance policy within 90 days of the expiry date of the policy.
You may also get a very less tariff discount if you don’t have any NCB in your policy. If you don’t want to waste your no-claim bonus then you should always mind the renewal date of the policy and renew your two wheeler insurance on time.
6- Inspection of Vehicle
One more problem is waiting if your two-wheeler insurance policy has lapsed. That is an inspection of the vehicle. Some insurance companies do inspections of bikes if an insurance policy has lapsed.
There may be some inspection charges also and of course, maybe time consuming. Inspection is required for comprehensive policy only. For third party insurance, there is no requirement for vehicle inspection.
Inspection of a vehicle is good practice because it reduces the scope of any dispute at the time of claim settlement. Inspection can be done through a physically available surveyor or through Mobile Application also. Technology has made it easy to do self-inspection of the vehicle.
7- Loss of Add On Covers
A longer break-in period in policy may give you another loss also. Some insurance companies do not prefer to provide some add-on if the policy is expired for a very long period of time.
Suppose you have to Add on the cover like zero depreciation cover and or Engine cover in your policy and you have not renewed the policy on time. It is possible that your insurer does not extend these benefits further. So what do you think? Should you renew your two wheeler insurance on time or not?
How to Renew Your Two Wheeler Insurance?
Some years ago, it was not easy to access many insurance companies and compare. And it was not convenient and easy to purchase and renew your two wheeler insurance policy with a few clicks. But now, due to technology and the internet, it has become very easy to access.
You have multiple options to renew your two wheeler insurance policy. You can do it online and offline as well. In offline mode, you can get in touch with your insurance agent or you can visit the branch of the insurance company.
For online you can visit the company website or you can download mobile applications and you can renew your two wheeler insurance easily. For online mode, you can pay the premium with many options like debit card, credit card, net banking, etc. Some companies have the option to pay the premium through wallets also.
How to Avoid Lapsation of Your Bike Insurance Policy?
Please do not wait to renew your two-wheeler insurance at the last minute. You may have some urgent work or may be stuck somewhere then you will not able to renew the policy on time.
If your budget allows you then you should purchase long-term insurance. Your insurance company sent you renewal notices and renewal reminders from time to time. So that your email, mobile number, and address should be correct.
With the above details, you may understand that there are lots of benefits if you renew your two wheeler insurance policy on time. It will safeguard you from legal liability and provide you with financial protection also. You should always have a proper and valid two-wheeler insurance policy.