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Benefits of Bike Insurance Renewal

Team AckoFeb 27, 2024

Bike insurance is an integral part of bike ownership. By securing your vehicle with the Comprehensive Bike Insurance Policy you are protected against unforeseen financial losses arising due to damages to your bike or third party liabilities. Renewing bike insurance on time lets you be at peace knowing you are financially protected at all times.

Apart from financial protection, there are various other advantages of bike insurance renewal. We list out the benefits of two-wheeler insurance renewal and how you can renew bike insurance online instantly.

Contents

Frequently asked questions

Top 10 benefits of two-wheeler insurance renewal

Here are the advantages of bike insurance renewal for a comprehensive policy.

1. Being a law-abiding citizen

Renewing your two-wheeler insurance policy when it is due will ensure that you follow the law of the land. You will avoid penalties and continue to be shielded as per your insurance cover. You can be fined, even imprisoned, for riding a bike without a valid two-wheeler insurance policy. Note that your two-wheeler policy becomes inactive the moment it expires. Thus, timely two-wheeler insurance online renewal after expiry becomes all the more important.

2. Staying insured

Failing to renew your two-wheeler insurance policy will make you vulnerable to financial losses in case of unfortunate events involving your bike. A Comprehensive Two-wheeler Insurance policy covers your bike in case it gets damaged due to an accident or calamities. It also insures your two-wheeler against theft. Renewing your two-wheeler insurance will help you to stay insured and to continue availing of your bike’s insurance coverage.

3. No break-in policy disadvantage

As mentioned earlier, you need to renew your insurance policy before its expiry. If you renew it after a considerable period (varies from insurer to insurer) after the expiration date, your two-wheeler insurance policy will be considered as a break-in policy. The insurance company might want to inspect your bike in such cases. This could increase your bike’s insurance premium.

4. Keeping the NCB active

No Claim Bonus (NCB) is an incremental discount (for 5 years) offered by insurance companies while renewing the policy. It is a discount offered for safe driving and not raising a claim during the course of the policy period. No Claim Bonus will cease to exist if you raise a claim or fail to renew your bike insurance policy before 90 days from its expiry date. 90 days is a grace period provided to keep your NCB active.

5. Right time to review

A month before your policy’s expiration period is usually a good time to review your Comprehensive Two-wheeler Insurance policy. While renewing, you can choose to opt for Add-ons such as Roadside Assistance, Pillion Rider Cover, etc. if it meets your requirements.

Add-ons will increase the insurance premium slightly but will strengthen the insurance cover by extending its coverage. You can also switch your insurance provider while renewing your policy. Digitization has changed the insurance industry and new insurers have come up.

6. You get a discount on bike insurance premium

When you renew bike insurance policy in time, your insurer can give you a certain discount on the policy premium. Provided you had not raised a claim in the previous policy period, you will be eligible for a No Claim Bonus. This is considered to be the biggest discount possible as it can go up to 50% on the policy premium. NCB is conditional in nature. Thus, you have to meet certain prerequisites to be able to avail the discount.

As said earlier, NCB can be availed if you do not raise a claim. To get a higher discount i.e. 50%, you should not raise a claim for 5 consecutive years. As soon as you raise a claim, the NCB cycle will reset, that is, the discount will drop to zero.

Another reason your NCB will drop to zero is when you do not renew two-wheeler insurance in time. If your policy has been expired for more than 90 days, a fresh NCB cycle will begin when you buy a new insurance policy for your bike. Thus, with timely bike insurance online renewal, you can avail high discounts.

7. Coverage remains intact

When you fail to renew bike insurance, you are vulnerable to a number of financial perils related to the damage of your bike and other entities. Timely bike insurance renewal ensures that you are covered against the following situations if you have a comprehensive bike insurance policy.

Third-party Liabilities: Bike insurance financially protects you from third-party liabilities like injuries, property damage and/or legal liabilities. You do not have to worry about compensating the third party for their loss. Of course, not causing harm to others should always be a priority. But in case of an accident, you will be financially covered.
Fire: Damages caused to your bike due to a mishap related to fire are also covered under the policy.
Own Damage: Just like third-party bike insurance liabilities are covered under a comprehensive policy, own damage, i.e damage to the insured bike is also covered. Your insurer will provide financial support in case your bike gets damaged. If you take your damaged bike to a network garage, you can avail of cashless repairs.
Personal Accident Cover: After a recent ruling, the death benefit offered on bike insurance is up to 15 lakh rupees. Thus, in the case of death or disability, expenses will be covered by the bike insurance company with the help of personal accident cover bike insurance.
Calamities: Your bike insurance policy will financially cover you against damages caused due to a natural or man-made calamity hitting the area. Natural calamities include earthquakes, floods, landslides, etc. and man-made calamities include riots, vandalism, etc.
Theft: You can have peace of mind against the theft of your bike. Your insurer will compensate you with the approximate current market value of your bike in case it gets stolen and the police are not able to find it.

Don’t forget to complete the bike insurance renewal process before the expiry date in order to avail of the above mentioned coverages.

8. No fines or penalties

Buying an insurance policy for vehicles is mandatory as per the law in India. Thus, if you do not renew two-wheeler insurance before its expiry, you will face fines and penalties. The fine for not buying bike insurance is 2,000 rupees and/or imprisonment. Apart from not having a financial cover against liabilities related to your bike, you will have to pay a fine or worse, face punishments.

9. Option to compare

Insurance renewal is an excellent time to compare different plans, features and prices. You can use the online platform to make a decision. If need be, you can switch to a new insurance provider, or you can switch to the Comprehensive Bike Insurance Policy from Third-party Bike Insurance Policy for broader coverage. Only with Comprehensive Insurance do you have the option to include add-on covers to increase the base coverage. Ensure you compare different bike insurance plans before you renew the existing plan for the right coverage for your vehicle.

10. Save time

Renewing bike insurance is not a cumbersome task anymore. Online bike insurance renewal is a hassle-free way of renewing the policy without having to depend on agents or visits to the office. You can review different plans and choose the right insurance coverage for your bike.

How to renew expired two-wheeler insurance online?

Renewing your bike insurance plan on time offers more benefits than the money you save by not buying an insurance plan at all. However, if your bike insurance policy has lapsed, there is no need to worry since you can renew expired bike insurance online.

New-age insurers such as ACKO provide the benefit of renewing through the online platform. The digital platform lets you purchase, renew and even raise claims online. You don’t have to depend on agents or visit the branch to get your vehicle insurance renewed.

Frequently asked questions

Here are some of the common queries on bike insurance renewal.

How do I renew my bike insurance after it expires?

You can renew your expired bike insurance online without inspection. Visit our website or mobile app, provide your bike and previous policy (if available), and insure your vehicle instantly.

What if I don’t renew my bike insurance?

If you don’t renew your bike insurance policy, you will be penalised for not insuring your vehicle with the mandatory Third-party Liability Plan. And, if you don’t renew your Comprehensive Insurance Plan, then you will not be financially protected in case of accidental damages to your bike caused due to an accident, natural or man-made calamities, theft and even fire.

Within how many days should I renew my bike insurance plan?

It is important that you do not miss the expiry date of your bike insurance plan. While there is no minimum period by which you need to renew the plan, ensure that you renew it on or before the expiry date to avoid unforeseen financial losses.

Can I renew my two-wheeler insurance online?

Yes, you can renew your bike insurance online, and it is also the most hassle-free method of renewing vehicle insurance. There is no paperwork or form filling exercise to insure your bike. In fact, online renewal of bike insurance is instant and you receive the policy document to your email address almost immediately.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions. Explore More: