Any product or service that you use comes with an expiry date.
The same relates to your bike insurance policy that also comes with a date of expiry. On expiry of bike insurance, you can longer avail coverage from the insurance company. Though the insurance company does send you regular renewal reminders, despite this, it is very common for many vehicle owners to miss out on the renewal date. However, insurance companies do provide you with a grace period within which you can renew the policy. Read on to know all about the grace period in two wheeler insurance in detail.
What is the grace period in two wheeler insurance?
Grace period in two wheeler insurance refers to the period after expiry policy within which the vehicle owner can renew the policy. On successful renewal of policy within the grace period, the policy coverage stays intact and the vehicle owner can retain the NCB benefits. Insurance coverage comes to an end the moment the policy expires and you are no longer eligible to receive the coverage.
Grace period is offered for 30 days after the date of policy expiry. However, few insurance companies may offer you a period of more than 30 days which can go up to 45 days to carry out the process of renewal without any stress.
What if you don’t renew the two wheeler insurance policy on time?
Your two wheeler insurance coverage lapses the moment your date of expiry is over. You lose out on the accumulated NCB benefit if you don’t renew the policy within 90 days from the date of policy expiry. By not renewing your insurance policy, you not only lose out on the NCB benefit which can go up to 50% in the form of discount on premium, you also are not protected against damages caused to third party persons or property. The entire cost of damages will have to be borne by you and the insurance company does not provide coverage for the same.
Apart from this, riding without a valid two wheeler insurance policy is a punishable offense which can lead up to a fine of Rs. 2,000 or imprisonment up to 2 months. As per Motor Vehicles Act, 1988 having your bike covered with third party insurance is mandatory.
Importance of grace period in two wheeler insurance
One of the primary benefits of having grace period in two wheeler insurance is that you don’t have to go through the process of bike inspection. The inspection process may lead to an increase in premium if the surveyor spots any damages or dents in the vehicle. During the grace period, the policy is offered at the previous premium rate which turns out to be a huge saving for the policyholders.
90-days grace period for claiming no claim bonus
Insurance companies reward you with a discount on premium which can go up to 50% for not making any claims. The 50% discount is offered if you make no claims in 5 continuous policy years. If you don’t renew your policy within the grace period then you might end up losing out on the accumulated NCB benefits. 90 days grace period is provided for retaining the accumulated no claim bonus discount.
Ways to avoid lapse in two wheeler insurance policy renewal
One of the best ways to avoid lapse in a two wheeler insurance policy is to renew it on time. You can keep a track on it by setting up reminders on your phone. Also, the insurance company does connect with you for policy renewals 30 days before the date of policy expiry. Another smart way to avoid policy from lapsing is to buy a long term two wheeler insurance policy which provides coverage for a period of 3-5 years. By opting for long term two wheeler insurance you not only get coverage for long term but also can avail some discount on premium.
Two wheeler insurance renewal process online
Renewal of two wheeler insurance is simple with the advent of technology. You can renew your bike insurance online on Coverfox.com and get up to 80% discount.
- Visit coverfox.com
- Enter bike number and previous policy expiry date
- Click on view quotes
- Check on the coverage offered
- Proceed to pay premium
In case of timely renewal of policy, insurance companies do not go through the bike inspection process which can help you save on premium.
Now that you have understood the importance of bike insurance it is necessary that you renew the policy on time to continue staying protected against legal and financial obligations.