Cancelling Bike Insurance and Getting a Refund
Updated On Mar 31, 2021
Cancelling bike insurance is a straightforward process and in some situations you may even be able to get a refund on the premium that you have paid. Read all about the procedure involved.
If you are a bike owner in India, you must be familiar not only with the legal requirement for bike insurance but also all the varied options for when it comes to insuring your bike. However, you may not be familiar with the process of changing your insurance policy from one to another. In certain situations you will be able to cancel your bike insurance policy and receive a refund for the same. Let’s read all about this process.
How to Cancel Bike Insurance?
The following are the steps involved in the process of cancelling your bike insurance and getting a refund for it. With many insurance companies servicing customers online, the traditional process of applying for a cancellation with a paper application and submitting the documents physically has changed considerably. Here is an example of a policy cancellation process.
STEP 1: Email your bike insurance company with your intention to cancel and also write your policy number. Also mention your reason for wanting to cancel your policy.
STEP 2: Share the required documents as asked by the insurance company, which will depend upon your reason for cancellation.
STEP 3: Wait for the documents to be verified by the insurance company.
STEP 4: Once the documents are successfully verified, the insurance company will confirm this to you and share the details of the refund as per the terms and conditions of the insurance company and of your policy.
How to Get a Refund on Cancelled Bike Insurance?
Next comes the process of securing a refund. A refund process and policy cancellation process are two separate steps, and while they are related to each other, a policy cancellation will not automatically guarantee that a refund will take place. However, if all your documents are in order and you have a valid reason for cancelling the insurance policy, it is likely that your refund will get approved without a hassle. Let’s read about this process.
1. Cancellation Before the Policy’s Start Date
If your insurance policy is cancelled before its start date, you are likely to receive a full refund on it with some marginal operational costs. This is due to the fact that no potential risks were faced by the insurance company since the coverage had not yet begun.
2. Cancellation After the Policy’s Start Date
In the situation of cancelling the policy after the start date, the premium will be calculated by the insurance company on a pro-rata basis. This is due to the fact that your coverage will have been active before the initiation of the cancellation request and process.
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As you now know it is possible to avail of an insurance policy refund when you cancel the policy. It is best to cancel it as early as possible to get the maximum possible refund.
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.