Consequences Of Having An Expired Bike Insurance
Published On Nov 05, 2020
Find out what happens if you allow your bike insurance to expire. Aside from it being against the law for your bike to not be insured, you will face numerous negative consequences for it as well.
Ensuring that your bike insurance is always up to date and that you do not allow it to expire is beneficial for numerous reasons. Not only is it required by law according to the Motor Vehicles Act of 1988 to always have your vehicle duly insured, there are other negative impacts to failing to renew your bike insurance and letting it expire. Let’s read all about the consequences of having expired bike insurance.
What Happens When Your Bike Insurance Expires?
The following are some of the consequences of having expired bike insurance.
1. Loss of No Claim Bonus (NCB)
Perhaps the biggest consequence of letting your bike insurance expire is the loss of No Claim Bonus or NCB. NCB is a discount that is cumulative in nature that is a reward for being cautious and not raising any claim during the policy tenure. This is applicable only at the time of renewal of insurance and thus if you fail to renew your insurance in time and allow it to expire then you will be unable to avail of your No Claim Bonus.
2. Loss of Financial Safety
If your policy is expired, you will be unable to access any of the financial safety that comes with having your bike insured. Therefore in any accidental situation such as a road accident or any mishap such as theft or a natural calamity, you will be unable to avail of any of the financial benefits of being insured regardless of your history with the insurance company if your policy is expired.
3. Legal Liabilities
While you are under the protection of your insurance policy, in case of an accident that harms a third party, your insurance company would bear the payment for any damages sustained by the third party, such as repairs for their vehicle or even hospital bills. This can be a hefty financial liability. If your bike insurance is expired, you would have to legally bear this liability yourself by law.
4. Takes Up Your Time
Once your policy expires, you would have to purchase a new policy as you would be unable to renew your original policy after its expiry. This would be a cumbersome and time consuming process as you may need to get your bike surveyed again by the insurance company which would take up your valuable time. Additionally, the paperwork of buying new insurance would have to be repeated.
It is best to ensure that your bike insurance does not expire. Allowing it to lapse means that you would need to purchase new insurance all over again and you would be exposed to legal and financial liabilities in the meantime. You would also lose your NCB discount.
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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.