Like any other product or service, your bike insurance policy has an expiration date. Once it expires, you can no longer avail of coverage from the insurance company. While insurance companies do send regular renewal reminders, it’s common for vehicle owners to miss the deadline.
Fortunately, most insurance companies in India, like Tata AIG, offer a grace period for bike insurance renewal. As a result, you need to do a bike insurance renewal before the grace period ends to avoid losing coverage. Continue reading to learn more about the bike insurance grace period in detail and depth.
What Is Two-Wheeler Insurance Renewal Grace Period?
Forgetting important dates is a common problem among people, and their two-wheeler policy renewal date is no exception. The grace period offered by insurance providers is a relief for such individuals as it provides another opportunity to renew their policy. Renewing the policy on time is crucial because you cannot ride your bike on Indian roads without a valid insurance policy.
However, some individuals may misinterpret the term ‘grace period.’ It is important to note that the grace period is not meant to keep your policy intact. Once the insurance plan’s term expires or lapses, you lose your coverage entirely. The grace period allows you to renew your insurance plan while retaining the accumulated NCB (No Claim bonus) without going through the entire inspection process again.
The grace period in bike insurance is typically offered 30 days after the policy expiry date. However, some insurance companies may offer a more extended period of up to 45 days, which can alleviate the stress associated with the renewal process.
What Happens If You Fail to Renew Your Two-Wheeler Insurance Policy Within the Grace Period?
If you fail to renew your two-wheeler insurance policy within the grace period, your coverage will lapse immediately after expiration. It means you will lose out on the accumulated no-claim bonus (NCB) benefit if you don’t renew the policy within 90 days from the policy expiry date.
Not renewing your insurance for two-wheelers also means you will not be protected against damages caused to third-party persons or property. It leaves you liable to pay for any damages out of your pocket, as the insurance company will not provide coverage.
Furthermore, riding without a valid two-wheeler insurance policy can lead to a fine of ₹2,000 or imprisonment for up to 2 months. It’s important to note that as per the 1988 Motor Vehicles Act, having your bike covered with third-party insurance is mandatory.
The Vitality of Grace Period in Two-Wheeler Insurance Policy Renewal
The grace period offers insurance policyholders a chance to avoid paying the hefty premium they would have to pay if they bought a new policy. It is because renewing the old insurance policy within the grace period by paying a minimum penalty or fine would still allow the policyholder to use the earlier insurance policy with the earlier premium rates, much less than paying for a new premium.
However, if you don’t renew your bike insurance for a long time, a gap might arise between your policy’s expiry and renewal date. It can call for an inspection of the vehicle and lead to more issues in procuring a policy for your two-wheeler. Therefore, renewing your bike insurance policy within the grace period is advisable to avoid any hassles and financial strain.
How Can You Prevent Lapses in Your Bike Insurance Renewal?
Renewing your bike insurance policy on time is the most effective way to avoid lapses in coverage. The online renewal process is convenient and can be completed in minutes. Additionally, insurance providers offer various options to track policy expiry dates, such as through email, SMS, or customer care services.
Another effective way to prevent policy lapse is by opting for long-duration insurance policies, which provide coverage for 5 years or more. This way, policyholders can avoid the annual renewal process and the need for a grace period. Moreover, they can avail of discounts offered for long-duration policies.
How to Renew Your Two-Wheeler Insurance Plan?
As mentioned earlier, insurance companies usually remind policyholders to renew their two-wheeler insurance policy on time through various means of communication. Despite these reminders, it’s possible to miss the expiry date due to a busy schedule or unforeseen circumstances. In such cases, you can contact your insurance company’s customer care number and request assistance. If you reach out within a few days of the policy expiry, the insurer will likely allow you to renew the policy during the grace period, albeit with a penalty.
Renewing a policy is possible through both online and offline modes. For offline renewal, you can visit the nearest branch office of your insurer and complete the process. You can navigate to the insurer’s website for online renewal and complete the process quickly and easily. However, having all the required documents to fill in the details accurately is essential.
If you renew the policy after a long gap, the insurer may conduct a vehicle inspection before issuing the policy. This inspection assesses the vehicle’s condition, helping them calculate bike insurance premium amount. Therefore, renewing your policy on time is advisable to avoid any hassles and additional costs.
By now, you know the significance of a two-wheeler insurance grace period in renewing your policy. You also understand the implications of not renewing your policy on time. Therefore, renewing your policy before it expires is essential to continue enjoying insurance coverage benefits for your two-wheeler. If you are within the grace period, you can renew your existing plan or purchase a new one from prominent insurance providers like Tata AIG and others.