Thinking to Cancel Your Bike Insurance Policy? Here Is What You Should Know
Updated On Mar 20, 2021
Each motorcycle owner is required to have bike insurance in India. However, there are occasions where, for different reasons, the policyholder contemplates cancelling the cover during the policy period. The reason for this will vary from dissatisfaction to high premium being charged to reduced terms and coverage. Similar to a bike insurance policy buying process, you will have to follow a procedure to cancel a bike insurance policy that could differ from insurer to insurer.
Bike Insurance may be cancelled at any time following payment of the bike insurance policy. There may be many reasons, whatever may be the reason, it should be specifically explained to the insurance company. Here are some reasons for cancelling the bike insurance policy.
Reasons to Cancel Bike Insurance
Following are some common bike insurance cancellation reasons:
Selling Your Bike: If you sell your bike, you may want to cancel your insurance policy. However, if the new owner wants to continue the policy rather than select a new insurance provider, you can transfer your policy coverage to the new owner. Nevertheless, you must let your insurance company know your decision and follow the cancelation and refund process.
Vehicle Theft: Theft of your bike is an unfortunate occurrence because of which you would want to cancel your bike insurance after informing your insurance company about the theft. The insurance company can order the first reports from police officers and the non-traceable reports. However, you can raise a claim for bike theft with a comprehensive insurance package which is cancelled after the claim amount has been paid.
Changing Your Insurance Company: If because of inadequate coverage or poor service experience with your current insurer, you switch to another bike insurance company between the policy period, you can ask for your bike insurance plan to be cancelled. You must share a copy of the new insurance policy with the former insurance provider during the cancellation period to ensure you are covered under a plan as a bike insurance cover is compulsory in our nation.
Refund Process of the Bike Insurance Policy
After verification, the insurance company refunds the balance amount on a pro-rata basis. If there is a claim, the refund process may often become lengthy. Here are some key things you should note about the refund process.
Cancelling Policy Before Due Date: If the bike insurance plan is cancelled before the date of the beginning of the policy, you may be reimbursed entirely but a marginal cost will be charged. As the policy has not begun and the insurer has not faced losses during the time, the complete amount is refunded.
Cancelling after the Start of the Policy: If bike insurance policies are cancelled after the start of the coverage term, you can get the refund balance depending on the pro-rata basis. The reason is that for a time before the cancelation request was made, the company had provided the policy coverage to the policyholder.
Specified Timeline of Refund: The insurance providers do not follow any standard refund schedule/time. In general, the refund is initiated within two weeks considering all the constant factors.
The standard method of cancelling your bike insurance coverage is to request your insurance company by writing an application to state your intention to cancel your plan. The application must be supported with specific and appropriate documentation. Policyholders can quickly initiate the cancellation of the insurance policy by sending an e-mail or by contacting the insurance provider. Some insurance firms also have a separate web page for the cancellation of policies and reimbursement of the amount where the policyholder can complete the formalities.
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.