Insurance is essential as it protects you from untoward financial losses that might arise in the case of an accident. Vehicular insurance is among the most necessary policies that an automobile user should have. With the Indian Motor Vehicles Act, 1988, and the India Motor Tariff, 2002, mandating the purchase of third-party liability coverage and a personal accident cover, respectively, it has become vehicle owners’ responsibility to purchase an insurance policy for their automobile.
However, one can only enjoy the benefits of an insurance policy if they renew it on time. Statistics show that 60% of two-wheeler owners do not bother to renew their bike insurance after the first year of purchase. Despite knowing the legal ramifications of not having the mandated insurance coverages, which includes hefty fines and/or the suspension of the driver’s license and the vehicle’s registration, most people choose to ride their two-wheelers without an active policy.
Let us understand the repercussions of not renewing your motor insurance policy on time.
Risks of a lapsed policy
A lapsed two-wheeler policy could be a nightmare for you as:
- Driving a vehicle without an active motor insurance policy is a legal offence that leads to hefty fines and/or the suspension of the driver’s license and/or the vehicle’s registration.
- If your policy has not been renewed, your insurance company will not entertain your claim for accidental loss or damage.
- The no-claim bonus, if any, will be lost. No-claim bonus is provided for not filing any insurance claims in a given year. It ranges from 20-50% and the benefit is transferred to the policyholder in the form of concessions on premium. If your policy lapse lasts for more than 90 days, then the benefit of the no-claim bonus will be lost.
Hence, to avoid such situations, remember the insurance renewal date and pay your premium on time.
Reinstating your policy
It is possible to renew a lapsed policy even after 30 days post its expiry; however, you will lose out on the no-claim bonus. In this case, you will have to go through the same procedure for obtaining a new policy, such as furnish the required documents as well as get the insurance company to inspect the automobile. Apart from losing the benefits of the no-claim bonus on the premium, this can even lead to an increase in premium cost compared to renewing your policy on time.
This can be avoided if one renews their motor insurance policy on time. Here is how you can renew your insurance policy without getting hassled or wasting any time.
Online renewal is fast and paperless
Renewing your policy online requires less paperwork. All you need to do is log on to the insurer’s website and find the renewal option. Mention all the required details like registration number, engine number, chassis number, policy details, etc., and calculate the premium. The entire two wheeler insurance renewal process takes just a few minutes. Make sure to collect the premium receipt or acknowledgement slip once the transaction has been approved. Remember to not make any mistakes when you are providing the vehicle/policy information.
Long-term two-wheeler insurance
Another alternative to renewing your policy each year is to avail a long-term two-wheeler insurance policy with a tenure of two to three years. This helps two-wheeler owners to remain insured for longer durations without being hassled to renew their policy. But do not worry about forgetting to pay your premium even after this duration as the insurance provider will send you a reminder as the due date nears.
It makes no sense to ride your precious possession without insurance. Therefore, renew your two wheeler insurance online and stay away from that stress!