Things You Must Know About a Lapsed Two-Wheeler Insurance Plan
As we all know, two-wheeler insurance is mandatory for every two-wheeler being ridden on the road in India, and riding your vehicle without insurance is not at all advisable or legal, for that matter. Hence, it is recommended to purchase and renew your bike insurance on time.
Two-wheeler insurance can be easily renewed online, saving you from the hassle of visiting the insurer’s branch office. There is a grace period of 90 days, wherein the insurer can create the policy as a break-in so that you can still retain certain benefits like NCB. However, after this 90-day period, you will have to buy a new policy and start over with no benefits.
But, we often miss out on renewing insurance on time. However, that doesn’t mean that you cannot revive your two-wheeler insurance policy.
What happens when you fail to renew on time?
A policy lapses when you do not pay the premium to renew the policy on time. Consequently, there are no benefits within the break-in period i.e. the time period when the old policy has expired and the new policy is still to come in effect.
The No Claims Bonus (or NCB) which you may have accumulated with your bike insurance over the years will be lost if the policy is allowed to lapse for more than 90 days, which includes up to 50% discount which stacks up under the NCB benefit. And obviously, this may result in a higher premium on renewal. Additionally, you will be unprotected against any damage or loss arising out of an accident and related third party liabilities. Therefore, the best way to keep such a scenario at bay is to renew your policy on time. In that regard, you can save both money and time by renewing bike insurance online.
How can you reinstate your lapsed policy?
Do note that you cannot renew a lapsed policy after 90 days. In scenarios like those, you have to buy a new policy that would require the necessary documentation and inspection of the vehicle, among other formalities.
Renewing your two-wheeler insurance is mandatory, as riding a vehicle without insurance is an offense that is punishable by law. Owing to the convenience associated with renewing your bike insurance policy online, the whole process has now become easier.
What to do if your two-wheeler insurance has expired?
Insurers do remind customers through reminder texts or calls when the policy expiry date is near. But, there can be certain situations when you miss out to renew on time. So, if you have missed your policy renewal date, here’s how you can get your bike insurance policy reinstated: -Contact your insurer
If you have lost track of your policy renewal date or have missed it, the first step to undertake is to call up your insurer and ask for assistance. Your insurer may renew your policy without any penalty if it is only a few days past the due date. Moreover, insurers don’t undertake inspection in cases where you have been trying to pay for the policy before it expired.
Renew your existing policy online or offline
When renewing your lapsed policy, you can do it online as well as offline. For the online mode, you can visit the insurer website, enter the required details and renew your policy online. While renewing online, keep all the vehicle documents handy as you will be required to enter the details. If you renew offline, you will have to visit your insurer, and he may ask a survey of your vehicle before issuing a new policy.
How to avoid lapses in insurance renewal?
The best way would do would be to renew on time. It is easy to keep track of the due date by signing up for email/SMS alert service. However, there is another smart way to avoid these hassles; just opt for a long-term two-wheeler insurance policy. Some insurers offer long-term insurance policies with coverage of up to 3 years. Choosing a long-term two-wheeler insurance policy saves you from the hassles of annual renewals while offering tangible benefits.
**To understand exactly about the policy coverage, exclusions etc read the Policy Wordings carefully.**