What to do if your bike insurance policy expires?

Posted on: Feb 11, 2022 | | Written by:

What to do if your bike insurance policy expires?

Published on February 11, 2022. EST READ TIME: 3 minutes

Riding your dream bike is fun for sure, but you need to buy the right insurance and maintain it as well. In fact, third-party liability bike insurance is legally mandatory if you intend to ride your vehicle on public roads in India. And if you want better coverage, you can go for comprehensive insurance. In either case, you need to make sure that you renew the policy on time. Expiry of bike insurance can otherwise lead to problems. Before we delve into that, let’s find out more about the two types of insurance.

Third-party liability vs comprehensive insurance

As stated before, third-party liability insurance is mandatory, as it helps protect you against any financial obligation you may have towards a third-party person or property as a result of an accident that causes injury or damage. It includes treatment costs and legal fees, if required. Similarly, you stand to benefit from their third-party policy if you are the victim of the circumstances.

On the other hand, a comprehensive bike insurance policy contains two primary components – the third-party liability and own damage cover. The latter meets the cost of fixing your own vehicle in case of an accident, or due to any damage received as a result of natural or manmade calamities. It also covers you against the theft of your bike. Furthermore, it provides the opportunity to avail add-on covers at a nominal cost to plug the gaps in your insurance coverage, providing enhanced protection against specific circumstances, and most importantly, peace of mind.

Why is expiry of bike insurance a problem?

Both the policies mentioned above come with a limited period of coverage, requiring manual intervention at the time of renewal. Failing to renew your policy on time can lead to the policy lapsing and might attract fines as it’s illegal to ride without insurance. If your policy has expired or is nearing expiry, there are steps you can take to rectify the situation. Let’s demystify certain myths about renewing an expired bike insurance policy so that you can remain covered.

1. Can you renew a policy that is classified ‘expired’?

The policy expires at the end of the grace period extended to you beyond the last date of the policy. This grace period differs from one insurer to another, depending on the type of insurance as well, but it can extend up to a month after the last date of the policy. You can easily renew your policy during the grace period as well. However, once the grace period ends, the policy ‘expires’. Now if you want to renew it, it would be equivalent to purchasing a new policy altogether, which means you will need to submit personal details and documents all over again. Your vehicle might need an assessment by a surveyor too.

2. Will your bike get inspected if the policy expires?

Yes, when you try to buy a fresh policy after allowing the previous one to expire, the insurer will arrange for an inspection of the bike at the start of the insurance-availing process.

3. Does it have to be a physical inspection by the surveyor, or can you self-inspect?

If you attempt to renew the policy within 90 days of its expiry, you might be allowed to self-inspect. Which means, you will be required to send photos and videos with specified parameters. The more you delay the renewal of the policy, more processes you will need to comply with.

4. Do you lose your NCB if the policy expires?

Yes, your NCB is reset 90 days after the expiry of bike insurance. However, you can preserve your NCB up to 3 years, if you’re selling your bike, and not buying a new one immediately. Write to your insurer about the intention to sell your existing bike and get an NCB reservation letter which is valid for 3 years. When you buy a new bike, you can transfer the NCB to the policy you would then purchase.

5. Will you get covered for damages if your policy is in the grace period?

While your policy will be considered ‘active’ until the date of expiry, including the grace period, you will not be entitled to any coverage against damages, either to a third-party or for your own vehicle during the grace period. You won’t have to pay fines during this grace period, but you won’t receive policy benefits either.

Conclusion

In conclusion, it’s best to renew your policy within the timeframe given, to ensure a smooth and hassle-free insurance experience. Insurers do send timely reminders to renew your policy and offer the convenience of online renewal as well to make the process easier. However, even if you’ve allowed your policy to expire, the door is open for you to renew or buy a fresh policy. And it’s recommended to do so, to financially protect yourself, and those around you on the road.

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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