Benefits of Timely Two Wheeler Insurance Renewal
Updated On May 10, 2023
Benefits of Timely Two Wheeler Insurance Renewal
Online two wheeler insurance renewal - When it comes to two-wheeler insurance, it can be understood as a mode to shield you against financial losses either you may incur towards a third party or sustained by your own bike or scooter caused due to accidents, thefts, or calamities. In India, it is compulsory to at least own a third-party liability insurance policy while driving a two-wheeler lawfully, according to Indian Motor Tariff. Failure to do so can make you penalised with Rs. 2,000 and/or imprisonment for 3 months.
If any bike owner is looking to buy a bike two-wheeler insurance cover, it is widely suggested to go for the comprehensive insurance policy as it will provide a holistic coverage including third-party cover as well as own-damage cover. It serves different purposes from fulfilling legal responsibilities to giving you extensive insurance coverage.
However, just buying a Comprehensive Two-wheeler Insurance Policy will not be enough, but it requires to be renewed within the stipulated time.
Here are the 5 Benefits of Renewing Two Wheeler Insurance Timely:
1. Keeps You Insured
If you fail to renew your two-wheeler insurance policy, it can make you vulnerable to monetary losses in situations of unfortunate incidents involving your bike. A comprehensive two-wheeler insurance policy gives coverage to your bike if it gets lost due to theft or damage due to a mishap or an accident or natural calamities. Therefore, timely renewal of two-wheeler insurance will assist you to continue to be insured and avail bike insurance coverage in case of any accident.
2. No Break-In Policy Disadvantage
It is highly recommended and widely advised that you should renew your insurance cover before its expiry. If someone tries to renew it after passing a specified period, which may vary from insurance company to insurance company, after the date of expiry, in such case your two-wheeler insurance plan will be considered as a break-in policy. For the renewal of such plans, the insurance company might need to inspect your bike. Also, it could increase the premium amount of your bike insurance.
3. Keeps No Claim Bonus (NCB) Active
No Claim Bonus cover is a reward for not making any claim in a policy year in terms of discount or bonus which applies on next year’s premium. This bonus accumulates with every claim free year for 5 years, which makes it rise from 20% to 50%. Basically, it is a discount provided to policyholders for not involving in any accident by safe driving and not raising a claim during the course of the policy period. No Claim Bonus will cease to exist if you raise a claim or fail to renew your bike insurance policy before 90 days from your plan’s expiry date. 90 days is a grace period provided to keep your NCB active.
4. Gives You An Opportunity to Modify Coverage
A month before your bike insurance policy’s expiry date is generally considered to be the perfect time to review your two-wheeler insurance policy. During the renewal period, you can decide to select add-on covers like Roadside Assistance, Pillion Rider Cover, and so on, if you need them. Due to the inclusion of add-on covers, your premium will slightly increase but will provide you an extended coverage. During the renewal process, you can drop add-on covers as well. The renewal periods also allows you to switch your insurer based on your budget and requirements.
5. Makes You A Law Abiding Citizen
With the renewal of a two-wheeler insurance plan when it is due, you can ensure that you will continue to hold an active insurance cover. The bike insurance plan will save you from facing any legal charges while driving, otherwise, you can be penalised and can even be imprisoned to ride a bike without a valid two-wheeler insurance policy. However, the two-wheeler insurance policy turns to be inactive only after it gets expired due to non-renewal, which makes the timely two-wheeler insurance online renewal before the due date or after expiry exceptionally important.
There are so many benefits associated with the renewal of two-wheeler insurance, hence, it is crucial to get the insurance plan renewal done on time before the existing policy lapses. Nowadays, online renewal processes can bring an easy way out to renew policies at a click. So, it is recommended that you should not delay your decision to renew your two wheeler insurance. With the above-mentioned tips, you can get to know the advantages of policy renewal on time. We hope the information will encourage you to save your plan from getting lapsed by renewing it timely.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.