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How to Cancel Your Existing Bike Insurance Policy and Get a Refund for It?

By Juhi Walia
22 July 2022, 11:58 AM

Are you thinking of getting your existing two-wheeler insurance online cancelled? Worried whether you will get a refund for it or not? Firstly, there could be several reasons for getting your bike insurance plan cancelled. Maybe you have found a cheaper insurer, ready to offer the same insurance terms and conditions but at a competitive premium rate.

Or you could sell your old two-wheeler and move on to a new vehicle. Whatever the reason, you need to know the two-wheeler insurance cancellation process. This way, you can conveniently cancel your bike insurance online in a hassle-free process and also be eligible to get a refund for the same.

But you must meet certain conditions when cancelling your two-wheeler insurance. It includes indicating the reason for cancelling the two-wheeler insurance online and submitting the required documents.

The conditions are described in the insurer's cancellation and refund norms. You can also find these conditions on the insurer’s website and your policy document.

Reasons for Cancelling Two Wheeler Insurance

Here are some of the most common reasons why you might want to cancel your motorcycle insurance.

  • If you are considering selling your existing two-wheeler and buying a new bike or a four-wheeler, you must terminate the existing insurance policy, or you could transfer the insurance to the new owner’s name. You need to follow the necessary process and inform the insurer about the reason for doing so.
  • If your two-wheeler is stolen and the police cannot locate it, you must cancel your bike insurance online. Pass the information on to your insurer. You must submit the First Information Report (FIR), the untraceable report, and other supporting documents. You can file a bike theft claim if you have comprehensive bike insurance or a standalone bike insurance policy.
  • It is mandatory to hold a legitimate bike insurance policy online before you take your vehicle on the road. But there are chances you could get a more affordable deal on the same or even better insurance terms from another vendor. You could also be dissatisfied with the current insurer, or maybe you did not get adequate customer support from your existing insurance company. Whatever the reason, you can cancel the policy and present a copy of the new policy to the old insurer.

Steps to Cancel Two-wheeler Insurance

You can follow these steps to cancel your two-wheeler insurance:

Step 1: Log in to your existing insurance policy account through the current insurance company’s app or website.

Step 2: You can click on your kind of policy, select the one that has your vehicle details and select modify or edit.

Step 3: You can select 'cancel policy'.

Step 4: You need to attach relevant documents after you cancel the bike insurance policy online. If you bought a new policy, you must submit a copy of the insurance document. If you have sold the two-wheeler, you would have to submit Form 29 or the RTO bill that depicts the sale of the bike.

Step 5: The customer support team will verify and review the cancellation request and initiate according to the policy terms.

Step 6: You can follow the same procedure offline by visiting the branch of the motor insurance company. Or you could send all the above-mentioned details and documents to the insurer’s email.

Documents Required to Cancel Two-wheeler Insurance

To terminate an existing two-wheeler insurance online policy, you may have to submit the below-mentioned documents to the insurer to register your request.

  1. In case of cancellation due to the sale/delivery of the bike - bill of sale or RTO Form 29
  2. If you have a new insurance policy - A copy of the new two-wheeler insurance policy.

How to Get Reimbursed for Two-wheeler Insurance?

After completing the cancellation procedure for two-wheeler insurance, the insurer checks the documents and assesses the reason for the cancellation. After conducting verification, the insurer will review the refund amount, which will be pro-rated as per the policy terms. If you have made any two-wheeler insurance claim during the tenure of bike insurance, you may not receive a premium refund.

How to Get a Refund for Your Bike Insurance Upon Cancellation?

The refund norms vary based on the time you cancel your bike insurance policy online or offline.  If you want to cancel your existing motor insurance policy before the start of the contract, you may receive a full refund - a small fee may apply for operational purposes. The insurer will calculate the reimbursement pro-rata if you cancel the insurance after the start date. The reason for the pro-rata calculation is that appropriate coverage was provided to you and your vehicle for the period you had the coverage from the insurer.

It can take a few days to a week from the cancellation date for your refund to be processed, depending on the procedures of the relevant bank.


Getting a refund upon cancelling your bike insurance online is simple. You must keep all the necessary documents handy and follow the terms and conditions specified in your term policy. 

Read more - Everything You Should Know About Cancelling Your Bike Insurance


1. Are there any costs attached for cancelling two-wheeler insurance?

You may be charged a bit for the operating costs when cancelling your existing bike insurance policy. If any claim is made during the tenure of the existing policy, you won’t be eligible for any refund. If there is no claim, but the policy coverage was there, the refund will be pro-rata-based.

2. Can I cancel personal accident cover and keep third-party bike insurance?

As per the law, personal accident cover and third-party bike insurance are mandatory. So, cancelling a personal accident cover makes sense when selling your bike, and you not so keen to buy a new one.  loss that may occur due to these mishappenings. 

3. Is it possible to cancel an offline insurance plan and move on to a new online motor insurance policy?

Yes, you can do that. You also can compare different policies online and settle for the most lucrative and cost-effective two-wheeler insurance policy that is balanced and convenient.pact the premium in two-wheeler insurance.

4. Is it possible for the insurance company to cancel someone’s two-wheeler insurance?

You are allowed to cancel your two-wheeler insurance through the insurer’s website or app. 

5. You are allowed to cancel your two-wheeler insurance through the insurer’s website or app.

Suppose there is a fraud, misrepresentation, confidentiality issues, or other in-appropriation in the documents or the records. In that case, the insurance company has the right to cancel the policy.

6. If there is a need to correct the name on the policy, does the bike owner have to cancel his two-wheeler insurance online?

There is no need to cancel an existing motor insurance policy just for a change of name, address, or any other owner detail. You can make edits and modifications online and get the modified policy document in your email.


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