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Everything You Should Know About Cancelling Your Bike Insurance

By Vikas Chandra Das
21 July 2022, 11:46 AM
cancelling your bike insurance

As per the law in India, you may be fined for riding without valid two-wheeler insurance. So, canceling your bike insurance is not a good idea. However, if your bike was recently stolen or you are changing your insurer, knowing how the cancellation process works can be useful. 

Let’s look at the easiest way to go through the cancellation process: 

Steps to Cancel Your Bike Insurance

Depending on your insurance provider, the process may vary. The turnaround time (TAT) and refund initiation will also be different for different insurers. To help you understanding, here are the most common steps involved in the cancellation and refund initiation process - 

Step 1: Notify the Insurance Provider:

If you are planning to cancel your two-wheeler insurance policy, you will need to send an official request. You can either send a letter or email to your insurance company. Remember to include the policy number and reason for cancellation in the letter or email.

PRO-TIP: Always attach a clear image of your policy copy, showing your name and policy number, along with your email request. 

Step 2: Submit the Requested Documents:

Once your request is received, your bike insurance company will share a list of documents necessary to start the cancellation process. Depending on the reason for your cancellation, the list of documents changes. For your convenience, we have created a separate section on the necessary documents you would need. 

Step 3: Document Verification by the Insurer.

After you have submitted all the documents, your insurer will need some time to verify and cancel your policy. The average time is 2 weeks from the date of request. Digital insurers have a shorter waiting time than offline insurers.

If verification is unsuccessful: The insurance company will let you know the reason for rejection and guide you through the next steps.

If verification is successful: The insurance company will cancel your insurance and refund the premium amount as per their terms and conditions.

Documents Required to Cancel

  • In case of sale or transfer of your bike, you will need to provide all the legal documents proving the sale or transfer, including Sale Deed or Form 29 of RTO, along with your application.
  • In case you have bought a new policy from a different insurer, you will need to provide a copy of the new policy document.
  • In any other case, you will need to send an email with your policy number and reason for cancellation to your insurer. Based on the reason, the insurance company will inform you.

Refund on Canceling Your Two-Wheeler Insurance Policy

It’s obvious you would like to know what about the premium refund on policy cancellation. Would you get a refund if you cancel your two-wheeler policy or not? And if yes, how much would be the refund — full, partial, or pro rata basis?

So let’s understand about the refund on cancellation of your two-wheeler insurance policy.

Refund Process

Receiving a refund is different from cancelling your bike insurance policy. Although they are interdependent, a cancelled policy does not guarantee a complete refund. Your refund is initiated only after strict verification. The refund amount processed by your insurance provider is on a pro-rata basis. If you have a history of claims, the refund process will take longer than usual. 

However, if you have a valid reason to cancel the policy and your documentation is in order, you should not face any problems during the refund process. 

Depending on the scenario, your refund amount may be different. Here are some common scenarios: 

1) Cancellation Before the Start of the Policy

If you cancel your bike insurance policy before the starting date of your policy, you will receive a full refund—except a nominal cost charged for operational activities. Since the policy coverage has not begun, the insurance provider does not have to face any potential risks. So, you will enjoy a 100% refund. 

2) Cancellation After the Start of the Policy

If you cancel the policy after the start of the policy period, your insurance provider will calculate the premium on a pro-rata basis. This is because the insurer had offered coverage for the period from the beginning of the policy to the date of cancellation request.

The table below provides a generic calculation of the Premium Refund (in percentage) if you cancel after the start of your bike insurance - 

Duration between Start of the Policy and Cancellation (in months)Premium Refunded (in %)
Not exceeding 1 month80% 
Exceeding 1 month but not exceeding 2 months 70%
Exceeding 2 months but not exceeding 3 months 60%
Exceeding 3 months but not exceeding 4 months 50%
Exceeding 4 months but not exceeding 5 months 40%
Exceeding 5 months but not exceeding 6 months 30%
Exceeding 6 months but not exceeding 7 months 20%
Exceeding 7 months but not exceeding 8 months 10%
Exceeding 8 months 0%

*Numbers are indicative and may differ from one insurer to the other. 


It is not recommended to cancel your two-wheeler insurance. However, in the case of theft or transfer of the vehicle, a 3-step cancellation process is designed. This includes - notifying your insurer, submitting the relevant documents, and waiting for verification from the insurer. For most online insurers, it takes about 2 weeks for cancellation and refund initiation.

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