In India, two-wheelers are considered the most efficient means of transportation. However, it is tough to deny that two-wheelers are more prone to accidents and damages than other vehicles. In such situations, your insurance comes to your rescue. Yet, some consumers view renewing their insurance as a waste of time and a financial burden. So, here are some of the benefits of renewing your two wheeler insurance on time.
Benefits of Timely Two-wheeler Insurance Renewal
Saves You from Legal Penalties
According to the Motor Vehicles Act 1988, having third-party bike insurance is mandatory for all vehicle owners. Failure to have valid vehicle insurance is a punishable offence. The penalty for riding without an insurance plan has been doubled from INR 1000 to INR 2000 and/or imprisonment of up to 3 months under the new revisions made to the Motor Vehicles Act in 2019.
So, not only would timely renewal of your policy reimburse you in the event of an accident or disaster, but it will also protect you from any penalties under the law.
Keeps You and Your Vehicle Protected During Any Natural Calamity
If you fail to renew your two-wheeler insurance policy on or before time, you may be exposed to financial losses in the event of an accident involving your bike.
Natural disasters frequently destroy people's houses and automobiles, leaving only loss and destruction. However, renewing your comprehensive two-wheeler insurance will cover your bike against damages due to earthquakes, floods, explosions, cyclones, fire, etc. The cost of recovering from a catastrophe like this might quickly deplete your finances. As a result, having a financial safety net, such as an insurance policy, can go a long way toward ensuring your safety.
Offers Protection Against Man-made Incidents
Comprehensive bike insurance usually provides coverage for damage due to human activity. Theft, burglary, strike, conflict, and accidents are some examples. The two-wheeler insurance will cover the cost of service or replacement, whichever is greater at the time.
Thus, timely renewal of two-wheeler insurance can help you stay insured and receive bike insurance coverage in the event of an unforeseeable and unwanted incident.
No-claim Bonus
A no-claim bonus in bike insurance gives you a discount on your next year's premium if you don't make any claims during the policy year. Each of the first five claim-free years can increase your discount to 50%. Essentially, it is a discount given to policyholders for not being involved in an accident due to careful driving and not filing a claim during the insurance period. If you don't renew your insurance policy within 90 days of its expiration, the accumulated bonus will be lost.
No Break-in Policy
Renew your two-wheeler insurance coverage before bike insurance expires to prevent it from attaining a lapsed status. In case of a lapsed policy, the bike insurance company may need to inspect your bike to renew such plans. It may also raise the cost of your bike insurance premiums. This provision varies from company to company.
Modifications in Coverage
Insurance renewal is a great time to examine different plans, features, costs, etc, and make changes to your current plan. You can transfer to a new insurance provider if necessary or switch from a third-party bike insurance policy to a comprehensive bike insurance policy for greater coverage. A comprehensive not only comes with a mandatory third-party cover but also covers you for vehicle damages besides allowing you to include bike insurance add-on covers to boost your coverage. Before renewing your current bike insurance plan, examine multiple options to find the right coverage for your vehicle.
Gives You a Sense of Safety
The most significant benefit of timely renewal of your two-wheeler insurance is peace of mind. Obtaining two-wheeler insurance for your vehicle can give you a sense of security when riding it on the road. It will also help you avoid traffic charges that one has to pay otherwise.
Conclusion
There are numerous advantages to renewing two-wheeler insurance; thus, it is critical to complete the renewal process before the old policy expires. Nowadays, it is simple to renew insurance with a few clicks online.
You can learn about the benefits of timely policy renewal using the recommendations provided above. Hope it will persuade you to renew your plan before it expires.
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