Whether you forgot to renew it on time or your bike insurance policy is due for renewal, buying/renewing bike insurance could be due to these reasons. To avoid breaking the law and paying penalties, two-wheeler owners must insure their vehicles under the Motor Vehicles Act, 1988. The lack of two-wheeler insurance is not just a legal requirement but also a safety hazard. If your bike insurance policy has lapsed, find out the consequences.
It would help if you carried two-wheeler insurance at all times, along with vehicle insurance in case of damages, thefts, or loss of your vehicle or property. It also covers damages or injuries to third parties' vehicles or properties. In addition, the owner-driver of the insured bike is covered in case of an accident.
It is mandatory and protects your financial obligations, making it essential for two-wheeler owners to renew their policies before expiration. The liabilities mentioned above will not be covered by an expired bike insurance.
Two-wheeler Insurance that has Lapsed: What is It?
Two-wheeler insurance policies not renewed even within their grace period of 90 days are considered lapsed. If you renew your policy within 90 days, you will retain your NCB bonus accumulated during the grace period. You will have to compensate for the mishap expenses if you cannot renew your bike insurance policy during this period.
Two-wheeler Insurance Policies and the Consequences of Not Renewing
You will lose several benefits and face several consequences if you fail to renew your two-wheeler insurance policy. Among them, we will discuss a few below:
A third-party bike insurance policy is the minimum requirement to drive a vehicle legally in India. You can be fined INR 2000 or imprisoned for up to three months if you ride your bike with a lapsed or expired two-wheeler insurance policy.
For the second time, you may face a fine of up to INR 4000 or a prison sentence of up to three months if caught driving without third-party bike insurance.
Liabilities Under the Law
Your third-party bike insurance policy covers you should something go wrong, so you don't have to worry about your financial and legal obligations. An expired policy does not cover you if you suffer a mishap on your bike and have to shoulder all the legal and financial costs.
Losing NCB Accumulated Over Time
No Claim Bonuses accumulated before your bike insurance policy expiration will be forfeited if you fail to renew it within 90 days. Not filing a single claim and riding entitles the policyholder to a No Claim Bonus (NCB).
If you do not file any claims for five consecutive years, this discount can go up to 50%. You can still use your accumulated bonus when you switch insurance policies, but you must make sure your policy hasn't expired or lapsed.
No Protection Against Own Damage (OD)
The comprehensive two-wheeler insurance protects you from the risks of damage to the bike caused by vehicles, such as crashes, thefts, natural or artificial disasters, etc.
If your bike insurance policy weren't renewed on time and you faced any of these emergencies, you'd be liable for any financial expense. You must compensate the own damage (OD) payments.
A Lengthy Process
You might have to buy a new insurance policy if you have a lapsed policy. You may have to spend a lot of time and energy on this process.
An inspection of your vehicle by the dedicated surveyor is required when you purchase a new policy. The silly mistake of not remembering the expiration date also leads to losing the NCB discount and paying a higher premium.
Two-wheeler Insurance Tips: How to Avoid Lapses?
You can easily stay on top of the due date and prevent your policy from expiring. The following ways can help you:
1. Ensure that you are signed up for your insurer's SMS or email reminder service. Whenever it is time to renew your bike insurance policy, they will keep you informed.
2. Choosing online renewal over offline renewal is the best option for two-wheeler insurance renewal. Two-wheeler insurance renewals are automatically contacted by the insurer when you renew online.
3. Make sure you answer your insurer's calls. Policyholders sometimes ignore calls unintentionally or intentionally. To renew your policy on time, answer your insurer's calls when they contact you.
4. It is essential to read all emails you receive from your insurance company. A reminder email will also be sent to your registered email address. Therefore, you should open those emails and read them.
5. You will save on renewal hassles if you opt for long-term bike insurance over annual plans, and you'll be able to enjoy discounted rates on these policies.
The best way to avoid bike insurance expiration is to keep it current. You would be liable for legal and financial consequences if you let the insurance lapse, and you would have to purchase new insurance all over again. In addition, your NCB discount would be lost.