Two-wheelers are among the most preferred modes of transport in India. They help us travel through small distances with ease and make our daily routines easier. However, because of their convenience, the number of two-wheeler owners in India has risen exponentially over the past few years, leading to a corresponding increase in the instances of accidents and theft. This is why it is important to get bike insurance for two-wheelers.
Furthermore, having a valid bike insurance policy is mandatory under the motor laws prevailing in the country. With suitable insurance for your bike, you get financial coverage for unfortunate events. However, to ensure that your bike stays protected from unforeseen dangers, you must renew your bike insurance on time. Several insurers in India offer the facility of online purchase and renewal of bike insurance.
For instance, Tata AIG, one of the leading insurance companies in India, allows customers to carry out the TATA AIG two-wheeler insurance renewal online. This way, customers can purchase and renew online bike insurance in India. Insurers offer the faculty of online policy renewal to help the policyholders keep their insurance policy active. A failure to renew the plan on time may lead to a lapsed two-wheeler insurance policy.
What is a Lapsed Bike Insurance Policy?
When a policyholder does not renew their bike insurance plan on time, the policy lapses. Having a lapsed policy is similar to not having a policy. The insurance benefits and the right to file a claim end if you fail to renew your policy in time.
The Consequences of a Two-Wheeler Insurance Policy Lapse
If you don’t renew your bike insurance policy on time, here are some of the consequences you may face:
- Your accumulated No-Claim Bonus will be wiped off:
Your insurance company rewards you with an NCB discount on your insurance premium amount when you don’t file a claim for a full year. This discount can increase if you don’t file a claim for a few years. For example, you can get up to a 50% discount on the premium amount if you don’t file a claim for five consecutive years. However, if you fail to get the plan renewed on time and do not renew it after 90 days of the policy’s lapse, your accumulated NCB will be eliminated.
- No financial coverage:
When you drive your two-wheeler on the road with a lapsed bike insurance policy, you risk your two-wheeler’s protection and your financial safety net. If your vehicle is damaged in an accident, causes damages to a third party person or property, or gets stolen, you won’t be able to get the necessary financial coverage for these situations with a lapsed bike insurance plan.
- Legal non-compliance:
As per the Motor Vehicles Act (MVA) of India, you need a valid bike insurance policy to drive your vehicle legally on the road. Therefore, if the authorities catch you on the road with a lapsed bike insurance policy, you may have to pay a fine of ₹2000 or face imprisonment of up to 3 months.
- Re-purchasing a bike insurance plan can be stressful:
If you decide to purchase a bike insurance plan again, the process can be quite strenuous. This is because purchasing a bike insurance plan after your previous policy has lapsed is akin to purchasing a new plan altogether. You will need to go through the whole process again.
Furthermore, your bike may need to be inspected once again. After a few years of usage, your bike may have undergone some wear and tear, which may result in a higher premium amount.
However, if your insurance plan has lapsed, you can renew the lapsed insurance plan within 90 days of the lapse date. Insurers provide this grace period to help policyholders revive their plans.
Here’s How You Can Renew Your Lapsed Bike Insurance Plan
You can renew your lapsed bike insurance plan either through two modes, namely the online method and the offline method.
- The online method of renewing lapsed bike insurance:
If you wish to renew your lapsed two-wheeler insurance online, you must follow the steps listed below:
- Gather the necessary documents, including the previous policy details, vehicle’s registration number, etc.
- Visit your insurer’s official website and log in to your account.
- Provide the details of your plan.
- Make the payment and complete the transaction.
Once you have followed these steps, your insurer will send you a soft copy of the renewed policy.
- The offline method of renewing lapsed bike insurance:
In the offline method of lapsed bike insurance renewal, you need to visit your insurer’s office with all the required documents. Once your insurer has received all the documents, they will review your policy and the documents. Thereafter, you will get the documents for the comprehensive bike insurance policy.
Between the methods mentioned above, many policyholders opt for the online method as it is quite convenient and stress-free. Along with this, when you opt for online two wheeler insurance for a lapsed policy, you get the option to skip vehicle inspection, which is a requirement in the offline method. Skipping vehicle inspection can protect you from a higher insurance premium.
If you’re a bike owner in India, getting insurance for your bike is legally mandatory. Your bike insurance policy protects your vehicle from the financial ramifications of adverse events. However, to ensure that your bike stays protected, you must renew the policy on time. If you fail to renew the policy on time, your insurance may lapse, and your bike will lose its protective net.
What is more, is that you may also lose out on the NCB discount you may have accumulated. In addition to this, purchasing a bike insurance plan after the lapse of the policy can lead to a high premium amount. Therefore, it is important to get your bike insurance policy renewed on time.