A grace period exists for two-wheeler insurance renewal. But it is advised you renew your two-wheeler insurance policy much before that. Because if you don't renew on the exact date, the policy will expire and leave you uninsured against any damage or loss due to accidents or natural or man-made disasters. Besides, the traffic police will impose a fine on you if it catches you with an expired bike insurance policy.
All bike owners are required to obtain at least a basic third-party bike insurance policy as per the Motor Vehicles Act, 1988, to prevent fines and imprisonments. As a result, you will need to renew your bike insurance policy from time to time to ensure that it remains active and that you do not break any laws.
But if somehow you can't renew on the due date, you can do so during the grace period and protect your NCB benefits. Besides, you can save yourself from buying a fresh policy and bearing a higher premium. Let's learn more about the grace period of two-wheeler insurance renewal.
Grace Period of Two-wheeler Insurance Renewal
Insurers will provide you with a grace period for the renewal of two-wheeler insurance online or offline, during which they will not increase your premium. They might overlook a gap of a few days (after the expiry date) and be comfortable with allowing two-wheeler insurance renewal without a bike inspection.
If there is a large gap in the renewal of a two-wheeler insurance policy after it has expired, the insurer might feel that it would be prudent to inspect the bike. Bike insurance premiums can be increased as a result of an inspection. Thus, a grace period only saves you from paying a higher premium. Else there is no benefit in delaying your renewal premium payment.
Knowing the 90-day Grace Period for No-claim Bonuses
In insurance terms, an NCB in bike insurance is a bonus offered to policyholders as a discount for not claiming during the previous policy period. If you don't raise a claim for five consecutive policy years, you can get a discount as high as 50%.
The NCB accumulated throughout your bike insurance policy will be void if you do not renew it within the grace period, which is 90 days from your policy expiry date.
Read more - How to Calculate NCB for Two Wheeler Insurance?
Two-Wheeler Insurance Lapses: How to Prevent Them?
Renewing your policy on time is the best way to avoid insurance lapses. Insurers offer alert services via email or SMS, making it very easy to stay on top of things. Your bike insurance company also contacts you about policy renewals before the expiration date.
Alternatively, you can purchase a long-term two-wheeler insurance policy that covers you for at least three or five years to avoid the hassle of yearly renewals. Long-term policies also get you discounts on premiums.
It is a great help to have a grace period, but don't rely on it completely when you can renew your policy beforehand.
Insurance for Two-wheelers: How Do You Renew It?
It has been mentioned earlier that insurers start reminding policyholders when it is getting close to the expiration date of their policy. However, you may miss out on a call from them when you are out of town or too busy with your work. If this is the case, you must contact your insurer as soon as possible. If you renew your policy within 90 days of the policy expiration date, you escape a financial burden on yourself.
Please remember that when you renew your bike insurance policy online, you will be required to fill out forms on the company's website. So, have all your vehicle documents handy. And if you want to do it offline, you will need to contact the agent or visit the branch to pay the renewal premium.
Read more - Is Online Bike Renewal Really Safe?
Conclusion
It is clear to you that the grace period can be important for people missing the renewal deadline. But letting your two-wheeler insurance policy expire by not paying on the due date will get you in a legal tangle. Besides, please read your policy document carefully to know various terms and conditions pertaining to a grace period.
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