While purchasing a bike insurance policy, many policyholders may ask themselves: What if they miss their insurance renewal? Not renewing your bike insurance can have severe consequences, including legal trouble, monetary expenses, and forfeiture of advantages such as the No Claim Bonus (NCB).
However, with the help of bike insurance renewal online, the chances of delaying or missing premium payments can be significantly reduced. Let’s take a look at the effects of missing your renewal and how not to fall into the trap of lapsed insurance cover.
What are the Consequences of Missing Bike Insurance Renewal?
Understanding these major consequences of missing bike insurance renewal can help policyholders be more cautious about the renewal process and time.
Listed below are the possible effects of missing your bike insurance renewal:
● Instant Loss of Insurance Coverage
As soon as your bike insurance policy lapses, your policy is no longer valid, and your insurer will not provide coverage for any accidents, theft, damages, or third-party liabilities. This implies that even if you encounter an accident a day after expiry, all the repair or legal expenses are your responsibility. Hence, it is always better to renew your policy a few days before the expiry date.
● Risk of Legal Trouble
Every motorbike should have at least a valid third-party bike insurance policy under the Motor Vehicles Act in India. If your policy has expired, driving your vehicle is against the law. If caught, you may be penalised with a fine of up to ₹2,000, suspension of your license, or even imprisonment for repeat offences. However, this can easily be avoided with prompt insurance renewal.
● Out-of-Pocket Financial Burden in Accidents
If the accident happens during the time your policy is inactive, the insurance firm will not accept any claim you file. Whether it is damage to your own car or harm caused to a third party, the expenses have to be on an out-of-pocket basis. In the absence of an active policy, even a minor accident can prove to be a big financial problem.
● No Protection Against Natural Disasters or Theft
A lapsed policy leaves your bike unprotected against events like theft, fire, and floods. Since you are uninsured, the insurer is not obligated to compensate you—even if the incident happens the day after the policy expires. Delaying bike insurance renewal online can lead to significant unexpected losses.
● Delayed Renewal with Limited Benefits
Often, policyholders can avoid missing the renewal date due to travel, sickness, or forgetfulness. Fortunately, insurance companies provide a 90-day break-in period when you can still renew your policy. If the plan is renewed within this time frame, you might still be able to keep benefits such as the No Claim Bonus (NCB). However, you will not be able to make any claims during this break-in period until the plan is active again.
● Loss of No Claim Bonus (NCB)
The No Claim Bonus (NCB) is a discount or reward you get for each claim-free year. Over a period of time, this can help you save up to 50% on the premium. However, this advantage is only maintained if you renew within 90 days of policy maturity. A delay beyond this period results in the complete loss of NCB and increased renewal charges.
● Policy Lapses After 90 Days
If you fail to renew your bike insurance even after the 90-day grace period, your policy will expire. As a result, you will not only lose the NCB, but you will also have to purchase a new policy. This typically involves a stringent inspection of your bike by the insurance company and could mean paying a higher premium. The procedure is more burdensome and costly than a regular renewal.
● Increased Costs and Extra Hassles
Lapsed policies also result in increased premiums when you go back to purchase a new one. Certain insurers may even decline to insure your car without inspection, and you may have to pay extra for the inspection. Renewing late also results in additional paperwork, delayed policy releases, and the possibility of being uninsured during the waiting period.
What are the Common Mistakes to Avoid When Renewing Your Bike Insurance Policy?
While timely renewal of your bike insurance is crucial, it is equally important to avoid errors in the renewal process. Such blunders can lower your benefits, raise claim problems, or even invalidate your insurance.
Listed below are a few crucial mistakes you should strictly avoid:
● Not Claiming Your NCB
A no-claim bonus (NCB) is a discount for not making any claim during your policy period. Most policyholders miss out on this discount at the time of renewal, resulting in paying higher premiums unnecessarily. You can avail NCB within 90 days of policy maturity, but renewing in advance and getting this benefit credited is always advisable.
● Overlooking Policy Terms and Conditions
It is unsafe to assume that policy terms do not change. Insurance companies can modify terms according to new regulations. Stay updated with the latest policy documents to understand about exclusions, inclusions, and modifications so that you do not encounter any surprises while settling claims.
● Failing to Reveal Bike Modifications
If you have modified your bike, such as by tuning the engine, changing body parts, or fitting accessories, always inform your insurer. Ignoring such things may result in claim rejection since insurers consider undisclosed changes to be misrepresentation.
● Providing Incorrect Details
Providing incorrect information, such as the bike’s registration number or the owner’s name, can render your policy invalid. Double-check using your certificate of registration and old policy to prevent expensive mistakes.
● Missing Beneficial Add-Ons
Most policyholders tend to skip add-ons, believing they are not needed. However, roadside assistance or zero depreciation can provide essential support at a minimal additional cost. Assess your bike usage and choose add-ons that provide increased protection.
Avoiding these errors ensures that your bike insurance renewal online provides you with full value and continuous coverage.
Missing your bike insurance renewal may have severe implications, such as legal issues, monetary losses, and total cover loss. Fortunately, with the help of bike insurance renewal online, being insured has never been simpler.
Add Business Connect magazine to your Google News feed
