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Can I Renew a Lapsed Two-wheeler Insurance Policy?

By Juhi Walia
28 July 2022, 12:29 PM

An insurance policy is not just a measure of 'better safe than sorry'. It is also a legal requirement. Therefore, keeping track of your policy expiration date and renewing your two-wheeler insurance policy on time is prudent. 

An insurance policy is valid until the date mentioned in the document, usually for a year. So, if you bought a cover on 10 January 2020, your policy is valid till midnight of 09 January 2021. 

After that, the policy benefits mentioned in it cannot be availed. In this situation, your existing policy is said to have expired. And if you don't renew within the next 90 days, the policy will lapse, forfeiting all the premium discounts you may have earned before, let alone the coverage against unforeseen incidents.

But can I renew the lapsed two-wheeler insurance policy? If so, then how? If not, then what can you do next to get covered? All these questions may come to your mind. Read this article to know the answers to these pressing questions regarding two-wheeler insurance. 

What Happens When a Two-wheeler Insurance Policy Lapses?

For starters, you do not have insurance coverage after the policy has lapsed, and if something happens to your two-wheeler, you have to pay for it from your pocket. Moreover, third-party insurance is a legal requirement in India, and you could be penalised if caught riding without a valid policy.

Additionally, you would have to purchase a fresh policy and lose out on the no-claim bonus in bike insurance you would have accumulated till then. This amount can be as high as 50% of your premium, and forfeiting this would make your insurance costlier than usual. 

How to Prevent a Two-wheeler Insurance Policy from Getting Lapsed?

To prevent a policy lapse, you need to renew it on time. You could set a reminder on your phone or set up an SMS alert system to help you keep track of your policy. Most of the time, the insurer reminds the insured of the need to renew the policy well in advance through calls, emails, and text messages. That being said, if you have not been able to renew the policy on time, you must contact your bike insurance company and inform it at the earliest opportunity.

Insurance providers understand that sometimes, we may forget the due date or cannot renew the policy at a particular time. So, they give a grace period of 90 days from when the policy has expired before it lapses. This is also referred to as a break-in period. 

Although you cannot get the financial or legal benefits of the insurance cover, you will not have to get a fresh policy or forgo the NCB in bike insurance if you renew your policy within these 90 days.

Read more - Benefits of NCB Protection Add-on Cover to Your Bike Insurance

Additionally, you can purchase a multi-year policy that will extend your insurance coverage for upto two-five years. That way, you don't have to worry every year.

Online vs In-person Renewal of Two-wheeler Insurance Policy

With bike insurance renewal online on time, you can avoid a physical inspection of the vehicle. It is also hassle-free, as you can get it over with at any time of the day with just a few clicks. You will get the same benefits when buying a policy offline.

However, if you get it renewed offline, you need to visit the branch of the insurer and go through the physical documentation. It may consume much of your time and effort. And if you are buying a fresh policy offline as the previous one got lapsed, the premium could go up more than expected. It is due to the involvement of intermediaries in the offline renewal of two-wheeler insurance.

Moreover, this is possible only on working days and during business hours. If you are  comfortable with online transactions, why opt for an offline two-wheeler insurance renewal and face these hassles?

Read more - 7 Two Wheeler Insurance Companies

The Renewal Procedure

Cracking a perfect two-wheeler insurance renewal deal requires due diligence on coverage, premium, the track record of your insurer and its competitors, etc. Let's learn how you should approach renewal.

Choose the Right Insurance Company

You can either continue with your previous provider or switch to a different one if you are dissatisfied with the premium or settlement policy. You can thoroughly research all the available options and get quotes from different policy providers online and offline.

A great place to start is a comparison site such as Paytm Insurance, which lists all major providers with all relevant customisations and policies. For bike insurance renewals, a thorough comparison is crucial to get the perfect deal.

Factors To Consider

Aspects to keep in mind while researching include premium price, claim settlement ratio, deductible percentage, and the company's size in terms of the number of policies sold annually. 

This is important as it gives a broader picture of the insurance market. Which is better, a company which has sold 10 policies with a CSR of 99%, or a company which has sold 1000 policies with a CSR of 90%?

You can also consider additional bike insurance add-ons, such as zero depreciation, to extend your coverage against unforeseen incidents.

Enter Vehicle Details & Previous Policy

You need to input the vehicle's make, model, registration number, chassis number and other particulars. You also have to compute the IDV in bike insurance based on an assumed amount of depreciation. This includes the policy number, date and whether or not any claims were filed on it.

Payment of Renewal Premium

Once you have filled in all the necessary information, you must pay the premium, all of which can be done digitally, and have policy information delivered to your mail and phone instantaneously. 


Renewing your two-wheeler insurance policy is essential from legal and financial perspectives. Don't let your policy lapse and lose the coverage and the bonus you may have earned over the years. Circumstances such as job loss can lead to non-payment of the renewal premium. So, keep saving more by eliminating unnecessary expenses. Even a multi-year insurance policy can help prevent a policy from getting lapsed by eliminating the requirement to renew it every year.


1. Will I be charged a fine if I fail to renew on time?

Insurance companies do not charge a fine on the lapse of a policy. However, you will lose your no-claim bonus, and the premium may increase for a new policy, making it more expensive than renewing it on or before the due date.

2. Will the new insurer allow me to carry my NCB if I port an existing policy on renewal?

New insurers allow you to carry the NCB when you port an insurance policy to them from another company. This is because the NCB is assigned to the insured, not the policy itself.

3.What happens if I renew my policy after more than a year?

In the case of an annual policy, the maximum time permitted for renewal can extend beyond a year, 15 months to be precise, from the policy issuance date.

4. Is there a grace period for bike insurance renewal?

Insurers provide a grace period of 90 days from the expiry date of a two-wheeler insurance policy to renew the policy by paying the applicable premium.

5. What is the fine & penalty for riding with expired bike insurance?

If caught riding with an expired bike insurance policy, people can expect a fine of about ₹2,000, imprisonment for up to 3 months for the first offence, a fine of ₹4,000, and imprisonment for up to 3 months for subsequent offences.

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