Did you forget to renew your bike insurance policy before its due date? Now that it has expired, you are wondering if there is a need to renew the expired bike insurance as the bike is not under regular use? The answer to this is an absolute yes! You should have active bike insurance at all times to abide by the law.
Before we dwell on why it is important to renew expired bike insurance, and its possible repercussions, let us first understand what lapsed or expired bike insurance is.
What is Lapsed Bike Insurance?
In an ideal scenario, two-wheeler insurance should be renewed before its expiry date to keep your bike protected from unforeseen events like accidents. The moment you cross the expiry date, the insurance policy is considered as lapsed or expired and the insurance company is no longer liable to offer financial assistance in case there is any damage to the vehicle due to an accident.
However, usually, there is a grace period of 90 days to renew the policy to break in and retain some of the benefits like no claim bonus (NCB). Beyond this grace period, if you wish to renew your bike insurance you have to start the process of buying a new insurance policy all over again, with no carry forward benefits.
Here is why it is important to renew a Lapsed Bike Insurance
Let’s look at some of the top reasons why you should renew your expired bike insurance and what sort of implications you can avoid by renewing the policy:
Also read: A Comprehensive Quad Biking Guide in Dubai
- To Avoid Hefty Penalties: A lapsed bike insurance is as good as having no insurance policy in place at all. Driving a bike on Indian roads without at least the basic third-party liability cover is illegal. If you are caught by the traffic police, under the Motor Vehicle Act, 2019, you can be imposed with a hefty fine of 2000 rupees, and/or in some cases, you may be imprisoned for 3 months. We are sure this gives you a very big reason to go ahead and look for a bike insurance renewal after expiry.
- To Avoid Legal Obligation: Imagine getting into an accident without the bike insurance policy in place which results in the loss of life for the third party? A tricky situation right? now not only will there be a case filed against you, but you will also have to bear the cost of the compensation that needs to be paid to the next of kin, creating both legal and financial pressure on you.
- To be Free from the Loss of NCB: Every year the insurer gives a discount on the premium in the next renewal as a bonus if there has been no claim filed by the insured vehicle owner. So, if you fail to renew your bike insurance even within the 90 days grace period, you lose the benefit of A claim bonus.
- To Avoid Cumbersome Renewal Process: Reinstating expired bike insurance can be a lengthy process. You will have to go through the rigmarole of filling up the fresh insurance form, and the insurance company may even in some cases reject your application or charge you a higher premium amount.
How to Renew Your Lapsed Bike Insurance Policy Online
These days you don’t need to approach an insurance agent offline to renew your expired bike insurance, it can be done in few easy steps online itself.
- Visit the official website of the insurance company.
- Enter your previous policy details and the registration number of the vehicle.
- Choose the plan you want to enrol in.
- Make an online payment to complete the process.
The insurance company will send you the soft copy of your renewed bike insurance plan to your registered email ID, which you can download, print, and keep handy.
How to Keep an Alert of the Renewal Date:
There is a human tendency to forget dates, and forgetting renewal dates for premium payment can cause a toll as mentioned above. With steps like setting up an SMS or email reminders that get triggered well in advance helps you to be more vigilant. Alternatively, you can also seek long term insurance plan to avoid the hassle of annual renewal.
Given the multiple hassles and losses that one has to bear because of lapsed insurance policy, it’s highly recommended to go ahead and renew your lapsed policy right away without any further delay.