Repercussions Of Having An Expired Bike Insurance Policy

Having a bike insurance policy for all two-wheelers registered in the country is mandatory as per the law. While this requirement is complied with when buying a new vehicle, it often gets overlooked when it comes to renewal. Some miss the renewal date whereas some choose to not renew it. But non-renewal of expired two-wheeler insurance policy has its consequences. This article elaborates on the various repercussions of having an expired bike insurance policy. Let’s have a look -

What are the repercussions of having an expired two-wheeler insurance policy?

Here are some of the reasons why you should avoid a lapse in your bike insurance policy –

#1 Non-availability of no-claim bonus at renewal

The number one outcome of an expired bike insurance policy is the loss of a no-claim bonus. No-claim bonus or NCB is the facility where the insurance company offers a concession in the renewal premium. This bonus is available only when no claims are filed during the policy tenure. Allowing a policy to lapse past its due date for a period of 90 days can lead to losing out on these benefits that otherwise contribute to a substantial reduction in the premium. NCB benefits start at 20% and go all the way up to 50% for every consecutive claim-free policy tenure. So, avoid missing on timely policy renewal and take advantage of these no-claim benefits.

#2 No financial cover

The next result of an expired 2 wheeler insurance is the loss of financial safety. A bike insurance policy safeguards against third-party liabilities as well as offers compensation for your own damages. These benefits are not available in the event of an expired bike insurance cover. So, any unpredictable accident or damage to your bike, including theft or loss due to natural calamities is no longer covered under your insurance plan. To avoid being in such a situation, ensure the timely two wheeler insurance renewal

#3 Legal consequences

Two-wheeler insurance policies are available in two types, third-party and comprehensive plans. The Motor Vehicles Act lays down a mandatory requirement to have at least third-party insurance cover for all vehicles registered in the country. This third-party policy offers coverage for any legal liabilities due to third person in the event of an accident or damages. Not only that, but any cost of legal liabilities is also covered under such third-party insurance cover. When you have an expired 2 wheeler insurance cover, these liabilities are no longer part of its coverage and may result in hefty penalties due to lack of third-party cover.

#4 Time-consuming process

Buying an insurance plan after the expiry of your existing bike insurance policy is equivalent to buying a fresh insurance cover. This fresh purchase requires you to go through the entire process all over again including the documentation and inspection of your bike, taking up considerable time in your busy schedule. To avoid these additional hassles, it is recommended to not miss the timely renewal of your insurance cover. The above-mentioned consequences can not only have a financial impact but also result in increased hassles. So, make sure to purchase two-wheeler insurance for expired policy and avoid any lapse in its renewal. This way, you can stay afloat of any legal consequences as well as have adequate coverage for you as well as your bike. Know how to renew expired two wheeler insurance online.  Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.