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Why is On-time Renewal of a Bike insurance Policy Important?

Team AckoJan 18, 2024

All bike insurance policies in India come with an expiry date. This applies to Third-party Bike Insurance as well as Comprehensive Plans. As bike insurance is a compulsory requirement in India, you as a bike owner are required to renew the policy to keep it active. Also, only an active policy will insure your bike against damages. And when the policy expires, the insurance policy stops covering you. Thus, it is in your interest to opt for on-time renewal of a bike insurance policy. Read ahead to know why it is important to do so.

Contents

Importance of On-time Bike/Two-wheeler Insurance Policy Renewal:
Benefits of Renewing Bike Insurance on Time:
Points to Consider Before Bike Insurance Renewal:
- 1) Cover
- 2) Discounts
Why Is Buying/Renewing Bike Insurance Essential?
- Online Bike Insurance Renewal:
Frequently Asked Questions:

Importance of On-time Bike/Two-wheeler Insurance Policy Renewal:

The following points will highlight the importance of on-time renewal of a Comprehensive Bike Insurance Plan.

1) Penalty

If you do not renew your two-wheeler insurance on time, and it expires, you are exposing yourself to legal penalties. As riding a bike with an expired insurance policy is a legal offence, you can be fined by police officials for the act. Thus, on-time bike insurance renewal will save you from such penalties.

2) Liability

The Comprehensive Plan also includes a Liability Cover. It insures your liabilities if a third party is injured or their property is damaged due to an incident involving the insured bike. You can end up in big trouble if you are involved in a bike accident without a valid insurance cover. In such a scenario, the insurer will not be able to help you in covering the liabilities, and you will have to handle the situation on your own.

3) Own Damage

If you fail to renew your bike insurance on time and your bike gets damaged, the insurer will not cover the damages. The insurance policy is only valid when it is active. And failing to perform on-time renewal means the policy will expire and be considered inactive. As a result, you will have to pay for bike repairs from your pocket. Therefore, it is beneficial for you to renew the policy before its expiry date.

4) Grace Period

Bike insurers often offer a grace period for bike insurance renewal. This period usually lasts for a few weeks to a month from the policy expiry date. Here, you have another chance to renew the policy. However, the Grace Period is not an extension of the cover, the policy will remain expired. It is simply an opportunity for you to act at the earliest and renew the bike insurance plan without a rise in the premium, which is often due to Bike Inspection.

5) Bike Inspection

If the Grace Period expires and the insurers feel they need to have a look at the bike to review its condition before renewing its insurance policy, they initiate the Bike Inspection process. Here, the insurer’s executives will examine the bike and then share a renewal quote. Nowadays, self-inspection is also possible, wherein you shoot a video of the bike and share it with the insurer. Usually, Bike Inspection leads to an increase in the premium.

6) No Claim Bonus

Missing out on the renewal date can mean losing out on the renewal discount. Here are some important pointers about the No Claim Bonus (NCB).

NCB is a reward for going claim-free during the policy period.
NCB is associated with the Own Damage component of the policy.
You get a 20% NCB discount for the first year.
For continuous five claim-free years, the NCB can be up to 50%.
Raising a claim will bring the NCB down to zero.

The NCB benefit stays accumulated for 90 days after policy expiry. It lapses after that. Primarily, you should renew the policy before the expiry date; for some reason, if you cannot do that, then do so during the above-mentioned 90-day period to benefit from the NCB.

Benefits of Renewing Bike Insurance on Time:

Listed below are the major benefits associated with renewing your Comprehensive Bike Insurance policy on time before its expiry date.

Comply with legal requirements of The Motor Vehicles Act and avoid penalties.
Continue with the insurance coverage.
Avoid Bike Inspection and price hike.
Use the renewal discount and keep it active.
Ensure peace of mind concerning bike riding and insurance-related concerns.

Points to Consider Before Bike Insurance Renewal:

Keep the following points in mind before bike insurance policy renewal.

1) Cover

Before you renew your bike insurance policy, make sure you have the right coverage. For example, this is the right time to upgrade to a Comprehensive Plan from a Third-party Plan. You can also include add-ons or increase the number of add-ons as per your suitability while renewing the policy.

2) Discounts

If you have installed certified anti-theft gadgets for your bike’s security, you can get a discount from your insurer. This discount is only applicable on the Own Damage component. To avail such a discount, you need to do the following:

Install anti-theft gadgets certified by the Automotive Research Association of India (ARAI)
Inform the insurance company about the same and request for the associated discount.

Note that insurers might not have the facility to incorporate such discounts in the usual online bike insurance policy buying process. Thus, you may have to get in touch with them via email/call for knowing more about this discount.

Why Is Buying/Renewing Bike Insurance Essential?

Buying or renewing a bike insurance policy is essential due to the following reasons.

The third-party bike insurance component is compulsory as per the law.
It offers insurance coverage for Personal Accidents while riding the bike.
It offers insurance coverage against theft, calamities, and fire.
It offers financial assistance to repair the bike.
A bike insurance policy is comforting in the sense that you have the insurer to fall back on in challenging circumstances such as a bike accident.

Also, read: Second-Hand Bike Insurance

Online Bike Insurance Renewal:

If you are worried about missing out on the renewal date of your bike insurance policy, you can set a reminder beforehand and renew the policy online as it offers the following benefits.

The policy can be renewed in around two minutes.
No appointment or expert assistance is required to renew bike insurance online.
You can go through the policy’s details and make an informed decision.
Bike insurance policy can be renewed online at any time as the feature is available 24x7.
If you are stuck, you can reach out to Customer Care and seek answers.

Frequently Asked Questions:

Here are some of the common questions and answers associated with on-time bike insurance renewal.

1) Will the premium increase or decrease while renewing the Comprehensive Bike Insurance Policy?

The answer depends upon the cover and claims. If you have enhanced the cover with multiple add-ons, the premium will increase. And if you have not raised any claim, you will receive a renewal discount and the premium will be on the lower side. Also, the payable premium will depend upon the extent of the enhanced cover and renewal discount.

2) Will be covered under the bike insurance plan if I forget to renew the plan for a day?

For that day, you will be uninsured. Your cover will resume once you have renewed the plan.

3) How will I come to know about my bike insurance policy’s expiry date?

The bike insurance policy’s expiry date will be mentioned in the Policy Document. The insurer will most likely send renewal reminder SMS and email a month before the expiry.

4) Is it okay to ride a bike with an expired insurance policy if you have a valid health insurance coverage?

Bike insurance and health insurance are totally different concepts. Bike insurance does have a Personal Accident component but it has more to do with covering third-party liabilities and damages to the bike. Thus, you will be penalised for riding an uninsured bike irrespective of having health insurance.

5) What are my options when it comes to making an online payment?

Usually, you can make an online payment using Internet Banking, Debit Card, Credit Card, and Online Wallets.

6) Will my NCB get affected if I do not raise a claim but repair the damages to the bike from my own money?

No, the NCB will not get affected as you have not raised a claim.

7) What will be the NCB if I do not raise claims for ten consecutive years?

The NCB stabilises at 50% after the fifth claim-free year. So, after ten claim-free years, the NCB will be 50%.

8) Can I renew bike insurance before expiry from a new company even though I did not buy it from there?

Yes, renewing bike insurance before expiry from a new company from whom you had not purchased the plan is possible.

9) Can I renew bike insurance before expiry from an online insurer even though I had purchased it from an offline one?

Yes, renewing bike insurance before expiry from an online insurer is possible even if you had purchased the plan from an offline insurer.

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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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