For making sure not only you and your asset but also third-party asset and person are safe, the Motor Vehicle Act of 1988 has made it compulsory to have two-wheeler insurance. Without a policy, you cannot ply your vehicle on the road. Hence, people take the policy and do not renew them on time, leading to lapse. Insurance policies offer security against any financial obligations which may incur owing to the unforeseen mishap, leading to loss/damage and sometimes demise.
What is a Lapsed Policy?
Once the benefits from the insurance company end owing to non-payment of premiums on the due date, it is called lapsed bike insurance. Besides, when the policy does not get renewed on time, the policy gets lapsed.
Renewing Lapsed Policy
Two wheeler insurance renewal is still possible for which you need to assess your prerequisites as there are chances the requirements would have changed over the year. There are some facts to consider while renewing –
- Always compare the policies as there are a plethora of options available in the market and accordingly choose the one that suits your requirements. This is possible if you do bike insurance renewal online.
- If you think it is possible to switch to a different insurer because you are not satisfied with the current offerings, then you can do so and would not pose any concerns.
- In the preceding year if you have not filed any claims, then you are eligible for the No-Claim Bonus benefit from the insurer.
- For avoid riding on an uninsured 2-wheeler insurance and not paying additional expense owing to the lapsed policy, keep track and renew the scheme in advance.
Multi-year Insurance Plans
In a recent development, the Insurance Development and Regulatory Authority of India have permitted insurance companies to offer two-wheeler insurance for as long as three years. The thought behind this strategy is encouraging bike riders to renew the policy and remain secure throughout. Nowadays, bike insurance renewal process has got easier, thanks to the online system.
Following are the Steps to Renew the Same –
- Insurance Company: Finalise the insurer and while doing so, make sure to take care of the premiums offered based on the age and model of the motorcycle. At the same time, you can compare the prices online and understand the alternatives available.
- Inspect Two-Wheeler: When you plan to renew the two wheeler insurance, get it inspected and be assured of the pre-existing damages. If the damage exists and the surveyor notices the same, the insurance gets denied. Note, the insurer will continue to anyway review, irrespective of the damage or no.
- Buy the Policy: Once the inspection ends, you can decide to buy it either online or offline. There are chances you might need to buy the policy within 24 hours of the inspection.
- No-Claim Bonus: Remember, if the policy lapse is more than 90 days, you lose out on the No-Claim Bonus.
- Policy Renewal: If you seek to continue with the same insurer, you can ask details on renewal and ask them how to go about with it. Once done with formalities, the bike insurance policy gets renewed.