A two-wheeler insurance policy safeguards against the financial problems that could otherwise harass you if your bike meets with an unfortunate incident on the road. If the bike insurance policy has not been renewed, even for a short duration, the insurance company discontinues the facilities offered.
Let's look at some of the benefits of renewing your two-wheeler insurance policy on time.
Key Advantages of Renewing Your Bike Insurance Policy on Time
You will be amazed to learn that a renewed two-wheeler insurance policy can offer many benefits you may not have thought of. These include:
Safeguards You Financially from Third-party Risks
You can never predict what may happen the next moment. This is particularly true when you go on a bike ride. You may be driving safely and following all traffic rules, but you cannot expect the same from others. If God forbid, an accident occurs that risks the life or property of a third party, your third-party bike insurance will take care of the expense.
Timely renewal of insurance saves you from:
- Paying to the person injured by your bike.
- Paying for the expenses of restoring property damaged by your bike in case you have a comprehensive or standalone bike insurance policy.
Read more - Is Online Bike Renewal Really Safe?
Allows You to Legally Drive Your Bike on Indian Roads
The Motor Vehicles Act, 1988, makes it compulsory for every biker to protect his ride with adequate third-party insurance coverage. It is illegal to ride on the road without it and with an expired/lapsed bike insurance policy.
From a legal aspect, various punitive measures have been laid down for those who have not renewed their bike insurance policy. The quantum of penalties has been increased in the amended Motor Vehicle Act, 2019.
Different legal measures prescribed for riding with an expired/lapsed policy have been listed below:
- If you are caught without a valid policy, a fine of INR 2000 shall be imposed, and you may be imprisoned for a maximum of 3 months (applicable for 1st offence).
- For repeated offences, you will be fined INR 4000, and you may have to serve an imprisonment sentence of 3 months.
- If your juvenile child is found riding without insurance, you will be fined INR 25,000 for allowing this. In addition, you may be sentenced to jail for 3 years.
Saves You from Unnecessary Expenses if Any Natural Calamity Damages the Bike
A natural calamity can happen anytime. Floods, earthquakes, cyclones, lightning, storms, or any other natural disasters can damage your bike. If your comprehensive bike insurance has not been renewed, you will have to pay for the damage by yourself.
Keeps You Monetarily Safe from Man-made Damages to the Bike
If you show reluctance in renewing your bike insurance policy, you become financially vulnerable in case of man-made hazards. These include:
- Theft of your bike.
- Burglary of costly components of your bike.
- Damage caused to your motorcycle during strikes or by terrorists.
- Bike damaged by other vehicles not following the traffic rules.
- Vandalism.
If your bike insurance has not lapsed, the insurance company will bear the expenses related to repairing or replacing the bike.
Entitles You to Additional Financial Incentives with a No Claim Bonus (NCB)
If you don't bike insurance claim during the previous term of your insurance policy, you are awarded a discount in the form of NCB by the insurance company. This discount can be a lower premium during a two-wheeler insurance renewal. With each passing year, the discount percentage keeps increasing until it reaches the maximum limit of 50%.
If you fail to renew the bike insurance policy on time, you will lose the benefit of NCB. This will happen even if you ride the bike safely and follow all traffic norms.
Protects You Against Medical Treatment Expenses through Personal Accident Cover
Your pleasant bike journey from source to destination can turn nightmarish if you meet with an accident. Treatment of the injuries sustained by you during such an unfortunate incident will incur significant medical expenses. The personal accident cover clause of bike insurance offers monetary help of up to INR 15 lakhs for paying off such unpredictable expenses. What's more, it's mandatory to have this cover.
If your bike insurance has lapsed and you get injured while riding the bike, you will need to bear the expenses that follow. This will add to your physical and mental suffering. Hence, it is wise to always keep your bike insurance renewed.
Offers You Added Discount for Investments in Safety Devices
If you have installed a safety device like a burglar alarm on your bike, you may have to pay a lesser premium during the renewal of the two-wheeler insurance policy. This is because the bike insurance company will assure you that your bike will not be stolen or fall prey to other risks. This sense of safety in insurers translates into a lesser insurance premium.
Provides You with Additional Protection through Add-ons
If you have modified your bike or your two-wheeler has expensive components, you can protect the same by opting for bike insurance add-ons at a nominal cost on renewal. If your bike insurance remains invalid for even a few days due to non-renewal and anything happens to your bike, the entire cost will be yous to pay.
Offers You Roadside Assistance in the Case of a Breakdown
The most unpleasant thing that can happen to you while riding a bike is to get stranded in a lonely place due to a bike breakdown. However, your insurance company offers roadside assistance that helps tow the broken-down motorcycle to the nearest garage or get it repaired in that place itself.
In case of non-renewal, you cannot avail of roadside assistance if your vehicle gets immobilized in the middle of the road. Such issues can be flattened tyres, shortage of fuel, electrical or mechanical faults, etc. However, you may need to buy roadside assistance bike insurance add-on with your comprehensive or standalone own damage policy to get these benefits.
Conclusion
Renewed bike insurance policy saves you from financial and mental stress in more ways than one. You should renew your two-wheeler insurance on time to continue availing of the stellar benefits offered by the insurer.
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