• February 8, 2023

Renewal process of a lapsed bike insurance policy

 

 

It is mandatory in India to have a two-wheeler insurance policy. A bike insurance policy safeguards the policyholder against financial liabilities arising out of damage or theft of the bike. The policy also offers personal accident cover for the owner-driver of the bike.

 

A lapsed bike insurance policy can be renewed within 90 days from its expiry date. A policyholder must pay a late fee and submit the mandatory documents to renew a lapsed bike insurance policy.

 

Documents required to renew a lapsed bike insurance policy:

 

 

 

  • Driving licence

 

 

Some insurance companies allow a grace period of 15 days post expiry date to renew a lapsed bike insurance policy. If you fail to renew your policy within 90 days of its expiry, it can be renewed only after obtaining a NOC from the insurer.

 

If the bike is stolen or damaged during the period of lapsed insurance, it can be claimed only after obtaining a No Claim Bonus (NCB) certificate from the previous insurer. The NCB certificate indicates that there has been no claim made against the policy in question. The amount of NCB varies depending upon the number of years for which the policyholder has not made any claim.

 

What happens when you fail to renew on time?

 

If you fail to renew your bike insurance policy on time, the following penalties will apply:

 

 

  • Your NCB for that policy year will be lost, and you will have to start from zero again.

 

  • In case of an accident during the policy lapse, you will have to pay from your pocket for the damages.

 

How can you reinstate your lapsed policy?

 

If you have failed to renew your policy within the grace period of 15 days, you can still reinstate your lapsed policy by paying the required fees and submitting the mandatory documents. However, this option is available only if your bike has not been involved in an accident or stolen during the policy lapse.

 

What to do if your two-wheeler insurance has expired?

 

If your vehicle insurance has expired, you will have to pay a fine per the Motor Vehicles Act. In addition, you will have to get your vehicle insured again by paying the premium for the entire year. However, if you renew your insurance within 90 days of its expiry, there will be no need to pay the fine. Just remember to carry your previous insurance policy documents while renewing it.

 

Things to take care of while renewing your two-wheeler insurance:

 

  1. You should choose an insurance or product that provides the best coverage based on your individual needs and requirements.

 

  1. As with any other insurance policy, carefully read the terms and conditions before signing up for it. Also, check whether all eventualities are covered under it. For example, if your bike is stolen, will the insurance company reimburse you for the entire value of the bike or just a part of it?

 

  1. Find out about the deductible amount. This is the amount that you will have to pay from your pocket before the insurance coverage kicks in.

 

  1. Check if there are any restrictions on usage, age, and bike ownership.

 

  1. Find out about the renewal deadline for your insurance policy so that you do not lapse on it inadvertently. Log on to your insurer’s website or give them a call to find out this information in advance. Also, make sure that you renew your two-wheeler insurance well before the due date to avoid any last-minute rush.

 

  1. Bear in mind that the insurance premium amount may change when you renew your policy. This could be due to a change in your bike’s model or an increase in its age, etc. Be prepared for such eventualities and factor them into your budgeting.

 

  1. It is always a good idea to compare the rates offered by two or more insurance companies before you choose. You can get free quotes from these companies online and decide which one is best suited for you.

 

  1. Renewing your insurance policy may involve some paperwork (for example, if there are any changes to be made to your details or the bike’s registration number). Ensure that you have all the required documents ready so that the process is smooth and hassle-free.

 

  1. In case you make any changes to your policy during the renewal process, take a printout of the revised policy document for your records. This was all about renewing your bike insurance policy or ACKO bike insurance policy. Do not forget to renew your policy on time to avoid penalties or financial liabilities.

 

Conclusion:

 

Renewing your bike insurance policy on time is advisable to avoid any penalties and financial liabilities. You can do so by submitting the required documents and paying the premium. Some insurance companies also allow you to renew your policy online, making the process convenient and quick.

 

Robin Williams

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