A two-wheeler is the most effective mode of transportation in India. But, there is no denying that two-wheelers are more likely than other vehicles to get involved in accidents and sustain damage. In such scenarios, having insurance coverage comes in handy.
All different types of bike insurance come with an expiration date, including third-party and comprehensive coverage.
Hence, it is your job as a responsible bike owner to make sure that you renew your bike insurance before the due date. If you’re wondering why it is important to renew your insurance before the due date, and what important factors should you keep in mind, like the NCB, IDV in the bike, the premium etc., this article will take you through some of its key advantages. So, let’s begin.
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Importance of renewing bike insurance before the due date
Given below are some major pointers reflecting the need for the timely renewal of your bike insurance -
- Keeps you covered: Failing to renew your bike insurance by the due date can leave you open to unforeseen mishaps or accidents. A comprehensive bike insurance policy extends protection against theft and damage brought on by natural disasters. As a result, if you renew your two-wheeler insurance before its due date, your coverage will continue, saving you from the last-minute hassle.
- Uphold your No-Claim Bonus: No-Claim Bonus (NCB) is a discount on the premium, awarded to the insured for not raising a claim in a year. This bonus can go from 20% to 50% for each claim-free year. Notably, if you file a claim or fail to renew your insurance 90 days before the deadline, the No Claim Bonus will expire. Additionally, keep in mind that if your NCB is intact, the IDV in bike insurance will also be in a better position.
- Legal compliance: As per the law, if you drive the vehicle without active insurance, you risk being imprisoned and penalised. To avoid such a scenario, make sure to renew your bike insurance much before the due date.
- Enables you to modify your coverage: 90 days before the expiration date is the ideal time to renew your insurance. With this, you have the option to pick add-ons such as roadside assistance, and engine protection cover, among others. The add-on covers will result in a slight rise in your premium, but they will enhance your coverage.
- Choose a new insurer: Furthermore, you can also choose to switch insurers throughout the renewal term based on your needs and financial situation. While renewing, you can also opt to augment the IDV in bike insurance.
- Steers you clear of the grace period: Usually, bike insurers provide a grace period for renewing insurance. This time frame usually lasts from a few weeks to a month after the policy's expiration date. With the provision of a grace period, you have an additional opportunity to renew the policy.
However, please note during this period, the policy will still remain expired as it is not an extension of the coverage. It is merely a chance for you to renew your bike insurance policy without having to pay a higher premium. - Eliminates the need for bike inspection: If the grace period expires and the insurers believe they need to inspect the bike to examine its condition before renewing its insurance policy, they commence the bike inspection process.
Benefits of renewing bike insurance before the due date
- Freedom from third-party liabilities: In the unfortunate event of an accident, the insurance coverage will cover any potential third-party liabilities. A third party has the right to hold you liable for any injuries as well as damages you cause to their car or property. However, if you have insurance, it will cover these liabilities and make the necessary payments for the losses on your behalf.
- Security against natural disasters: Bike insurance offers protection against natural calamities including cyclones, earthquakes, landslides, fires, etc. Minimising the financial strain, two-wheeler insurance covers the expense of restoring the damages brought on by any of the aforementioned natural disasters.
- Defence against man-made catastrophes: Damage sustained due to man-made disasters is often covered by a bike insurance policy. These can be accidents, wars, strikes, theft, or burglary. The service and replacement costs, as applicable, will be covered by the two-wheeler insurance.
- Preservation of legal interest: As previously stated, third-party insurance is mandatory under Section 146 of the Motor Vehicles Act of 1988. (Source: Indian Kanoon) As the owner of the insured vehicle, third-party coverage guarantees that you will not be held liable for any third-party claims arising due to an accident caused due to the insured two-wheeler.
- Provides a sense of security: The peace of mind that comes with the timely renewal of your bike insurance is the most significant benefit. If you possess insurance, you will feel more secure while riding your 2-wheeler on the road. Additionally, it can assist you in avoiding traffic fines since operating a car without a valid insurance policy can result in hefty penalties.
- No-break-in policy: To avoid having your bike insurance become lapsed, renew your two-wheeler insurance policy before it expires. If your policy has lapsed, the bike insurance provider might need to re-inspect your vehicle to determine its IDV and renew it. IDV in bike insurance plays a critical role in ascertaining the premium rates you will have to pay. Hence, no break in policy is an integral benefit you acquire by timely renewing your policy.
Having exposure to the various benefits you acquire when you timely renew bike insurance, it becomes an absolute necessity to finish the renewal process before the due date. Insurance policy renewal is now easier than ever with just a few clicks online. Now that you are familiar with the importance of a timely renewal, we hope you get to it right away!
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
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