Steps to Renew a Lapsed Two Wheeler Insurance Plan

Posted on: Feb 28, 2023 | | Written by:

Steps to Renew a Lapsed Two Wheeler Insurance Plan

Published on February 28, 2023. EST READ TIME: 4 minutes

Two-wheelers tend to make life easier for their owners. They are not only more affordable to purchase but to maintain as well. And they can be quite resourceful to traverse through traffic conditions and reach your destination quickly. And the premium of two wheeler insurance is affordable as well. Yet quite a few bike owners fail to renew their policies on time.

Failing to renew a two wheeler insurance can lead to a lot of possible issues. For starters, you are susceptible to paying hefty fines for riding without valid insurance. In the event of an accident, you are liable to pay for the damages.

The meaning of a lapsed two wheeler insurance plan

All the insurance policies have a term associated with them. For standard two-wheelers, the term is one year. However, you can now opt for long-term two wheeler insurance plans as well. Should you fail to renew the policy before its expiry, it is deemed as a lapsed policy. A lapsed policy is similar to not having insurance in the first place. Insurance companies will stop offering you the benefits of the plan if you are holding on to a lapsed policy.

The consequences of a lapsed policy

There is a fair bit of loss that a bike owner must incur if they fail to renew the policy on time. Here are some of them.

1. Expenses out of your pockets

Since you do not have the perks of two wheeler insurance, you are liable to pay for all the damages. In the unfortunate event of an accident, the owner of the bike must pay for the damages out of their pockets. This applies to the damages to your bike and any other vehicles that might be involved.

2. Losing out on NCB

Failing to renew your policy before expiry can lead to losing out on NCB. NCB or no claim bonus is a discount that insurance providers offer to policyholders for keeping a clean sheet. If you do not file for any claim during a policy’s term, insurance providers will offer you a discount. The discount can help you reduce the policy premiums on renewal. If you fail to renew the insurance even after 90 days of its expiry, you can lose all the accumulated NCB.

3. Hefty penalties

The Motor Vehicles Act of 1988 marks it mandatory for two-wheeler owners to have a valid insurance policy. And failing to do so will attract hefty penalties. Failing to abide by this law will make you liable for a Rs. 2,000 penalty for the very first offence. It can even include imprisonment for up to 3 months.

4. Buy a new policy

Renewing a bike insurance policy before its expiry is one of the easier ways to go about it. However, if you do not renew the policy even after its expiry, you can no longer renew the policy. You must buy a new policy for your bike, which can mean inspection and all the processes of buying new bike insurance. It can be time-consuming and might cost you more money as well.

Steps to renew a lapsed bike insurance policy

There are a couple of ways by which you can renew a lapsed bike insurance policy. You can either opt for two wheeler insurance renewal online after expiry or offline mode as well.

Steps for two wheeler insurance renewal online after expiry.

● Collect details such as the previous policy and vehicle registration number.

● Visit the website or app of your insurance provider.

● Provide the details of the bike on the website or app.

● Select the right policy with adequate coverage.

● Choose add-ons if any.

● Complete the payment and you will receive the policy within a few minutes in your inbox.

Alternatively, you can choose the offline mode to renew the policy. In the offline mode, you must visit the branch office of an insurance provider. Make sure that you are carrying all the documents, such as your previous policy details and bike registration certificate. Once you submit the documents, the insurance provider will initiate a process to renew the policy. Since the policy has lapsed, your bike might be subjected to an inspection.

Why you should choose the online mode

Expired bike insurance renewal online is a better experience than the offline mode. For expired bike insurance renewal online, you will need to spend less amount of time, and it is hassle-free as well. It offers you a few other perks as well. For example, you can receive the policy document within a few minutes of purchasing the policy. In some cases, insurance providers might skip the step of vehicle inspection if the policy is bought online. Also, online policies are more affordable than offline ones.

Steps to ensure that you do not forget to renew your policy

Though you can opt for two wheeler insurance renewal online after expiry, it is best avoided. Here are a few steps that can help you to avoid policy expiry.

1. Keep track of your emails and SMS since insurance providers usually send notifications for renewal.

2. Set a reminder on your smartphone so that you do not miss out on policy renewal.

3. You can opt for long-term two wheeler insurance. You can either buy the policy for two years or three years. Thereby reducing the chances of missing out on policy renewals.

Is it mandatory to opt for add-ons during renewal?

As per the law, a third party bike insurance policy is the only mandatory requirement. You are not required to opt for add-ons during policy renewal. However, add-ons can extend the benefits of your policy and help you customise your plan. Some of the most popular add-ons include zero depreciation cover, engine protection cover, NCB protection, etc. However, you must opt for comprehensive bike insurance to be able to choose add-ons.

Though third party policies are affordable, they might not offer adequate coverage for your bike. Bike owners who want complete peace of mind and ride their bikes a lot must consider comprehensive bike insurance policies. It will also help you to get repairs done on your bike as well.

Conclusion

If your two wheeler insurance policy has expired, you can still get it renewed. The above steps will help you to renew the expired policy. However, if your policy has expired for more than 90 days, it is as good as buying a new bike insurance. Renewing the policy online is one of your best options. Failing to renew the policy on time can lead to a lot of financial perils. You can avoid these perils by following some of the methods mentioned above.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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