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How to cancel a bike insurance policy and get a refund?

Team AckoJan 17, 2024

There are several reasons why you might cancel your bike insurance policy. For example, you have sold the bike or want to switch to a less expensive insurer. Whatever may be the reason, you should know the process of bike insurance cancellation. Here’s how you can cancel your bike insurance policy.

Contents

How to cancel bike insurance policy?
When can I cancel my bike insurance?
Reasons to cancel bike insurance
Steps to cancel the bike insurance policy
Documents required to cancel a bike insurance policy
How to get a refund for a bike insurance policy?
New two-wheeler insurance policy
Frequently Asked Questions:

How to cancel bike insurance policy?

Cancelling your bike insurance policy is a simple process. The rules may slightly differ between insurance companies, and you may have to reach out to your insurer for the exact procedure. For most insurers, the process of how to cancel a two-wheeler insurance policy is as follows.

Call your insurer: Most insurers require you to speak with their insurance or customer care agent to cancel. You can find their contact details on their website or mobile app.
Mail your cancellation: Traditional insurance companies may insist on the old fashioned written cancellation letter be sent to their office or agent.
Visit the office: You may also have the option of visiting their office to request the cancellation of your policy.

When can I cancel my bike insurance?

You can cancel your bike insurance policy at any time. However, there are some terms and conditions that you may have to adhere to for two-wheeler insurance cancellation. This includes stating the reason for cancelling the two-wheeler insurance policy and submitting supporting documents.

Reasons to cancel bike insurance

Here are some of the most common reasons why you might cancel your two-wheeler insurance policy.

Selling the bike: If you have sold your bike or scooter, it is necessary to cancel the insurance policy. You also have the option to transfer the policy to the new owner. Inform your insurer of your decision and follow the required procedure for a hassle-free experience.
Theft of the bike: If your bike is stolen and the police cannot trace it, you must cancel the bike insurance policy. Convey the information to your insurer. You have to submit the First Information Report (FIR), Non-traceable Report, and other supporting documents. Please note that you can only raise a claim for bike theft if you have the Comprehensive Bike Insurance Policy.
Switching to a new insurer: All vehicle owners must insure their bikes with a bike insurance policy since it is mandatory as per law. You may have reasons to shift to a new insurance company. It may be due to an unpleasant experience with the current provider, or you may find a better price with another insurer. You must submit the new insurance policy’s copy (Third-party Bike Insurance is the minimum requirement) to the former insurance company to cancel the policy.

Steps to cancel the bike insurance policy

As mentioned, the cancellation process may differ between insurance companies. Here is how you can cancel your bike insurance policy at ACKO.

Step 1: Log in to your ACKO account via our website or mobile app.
Step 2: Select the policy card against the insured vehicle and click the ‘Edit’ button.
Step 3: In the new pop-up window, select ‘Cancel policy’.

You must upload the alternate policy copy if you have purchased a new bike insurance policy or upload the Sale Deed or Form 29 of the RTO if you are selling the bike. Our support team shall review the request and initiate the cancellation process as per the terms and conditions of the policy.

Alternatively, you can email us at [email protected] to cancel the policy. Ensure you provide your policy number and the reason for the cancellation, and attach supporting documents to raise the cancellation request. Our support team shall contact you to get the cancellation process initiated.

Documents required to cancel a bike insurance policy

Here is a list of documents needed to cancel a two-wheeler insurance policy.

In case of cancellation due to sale/transfer of the bike.

Sale Deed or Form 29 of RTO

In case you have bought a new insurance policy.

Copy of the new bike insurance policy

How to get a refund for a bike insurance policy?

Upon completing the two-wheeler insurance policy cancellation procedure, the insurer shall verify the documents and assess the reason for the cancellation.

The refund amount shall be calculated on a pro-rata basis after following the required verification process and terms and conditions of the policy. If you have raised a bike insurance claim during the policy period, you may not get a refund of the premium.

Here are some key points regarding the bike insurance refund process.

1. Cancellation before the policy commences

In case you cancel the policy prior to the commencement date, you may receive the full refund — a marginal cost may be charged for operational purposes.

2. Cancellation after the policy commences

In case you cancel the policy after the commencement date, the insurer shall calculate the refund on a pro-rata basis. The reason for the pro-rata calculation is that the insurer had offered coverage for the period prior to the cancellation request.

3. Refund timeline

At ACKO, it may take 7 business days from the date of cancellation for the refund to be processed. Please note that the timeline is an estimate and may vary depending on the procedure of the concerned bank, our payment partners, or any unforeseen circumstances.

New two-wheeler insurance policy

Having a bike means you must insure it. All two-wheeler owners must insure their vehicle as per law in India's state and union territory. Therefore, if you cancel your bike insurance policy and still own the vehicle, it is important that you insure it.

Keep these important points while shopping for new bike insurance:

Read the inclusions and exclusions of the policy.
Visit the website and the policy wordings to know the features in detail.
Discuss with family and friends about the company’s reputation in the market.
Ensure that you buy a policy that offers wide-ranging coverage at a lower price and a superior customer experience.
Opt for digital-first insurers such as ACKO for faster and paperless transactions.
Read the reviews of the insurer on the internet to know about the services offered.
The cheapest plan might not translate to superior services. Verify before you make the decision.

Frequently Asked Questions:

Here are some common queries and answers to bike insurance cancellation and refund.

Are there any consequences for cancelling a bike insurance policy?

There may be a marginal charge towards the operational costs involved in the cancellation process. Also, the refund shall be calculated on a pro-rata basis. If you have raised a claim during the policy period, you may not receive a refund of the premium.

Can I cancel the Own Damage cover and retain the Third-party Bike Insurance Policy?

You may not be permitted to initiate such a type of cancellation since these two are different types of policies.

Can the insurance company cancel my two-wheeler insurance policy?

Yes, the insurer has the power to cancel the policy based on misrepresentation, non-disclosure, and other such acts.

Can I cancel a two-wheeler insurance plan bought from an offline mode and shift to a policy purchased online?

Yes, you can make such types of changes. The online mode lets you instantly compare bike insurance and purchase a well-balanced and low-cost policy.

I need to correct my name in the policy. Should I cancel the bike insurance policy to get a new one?

You don’t have to cancel the policy. Access your ACKO account through our website or app to edit the required changes. Once the changes are completed, we will email you the new policy document.

Can I cancel my bike insurance policy online?

Yes, you can cancel your ACKO bike insurance policy online. You can do so by visiting our website or app. Log in to your account to initiate the cancellation.

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.

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