What Happens When A Two-Wheeler Insurance Policy Lapses
Updated On Oct 23, 2020
Do you want to know actually what happens when a two-wheeler insurance policy lapses?
Two-wheeler insurance policies shield your two-wheeler against uncertainties on roads. You purchase an insurance policy, pay the premium and opt for timely renewal. In return, your insurer provides you financial assistance in case of a mishap. However, the coverage does not apply to a lapsed insurance policy. A lapsed policy refers to an expired policy. If a policy is not renewed by the expiry date, it lapses and fails to provide any coverage.
Here is all you need to know about a lapsed two-wheeler insurance renewal.
What Is A Lapsed Two-Wheeler Insurance Policy?
When you fail to renew your insurance policy on time, it expires and turns into a lapsed policy. A lapsed policy is invalid and can put you in trouble. It no longer generates any benefits for you.
What Happens When A Two-Wheeler Insurance Policy Lapses?
When you miss a renewal schedule, your policy becomes invalid. When that happens, there will be the following two consequences:
1. No More Insurance Coverage
A lapsed policy will not provide any coverage for third party damage or for own damage incurred to the insured’s bike.
2. Legal Charge And Fine
You will become subject to fines and legal charges, as riding with a lapsed policy is a punishable offense.
How To Reinstate A Lapsed Policy?
There is nothing unusual in forgetting the renewal date. Insurance providers understand that and hence, offer some concession period. Here is how the concession period works.
Renew Policy WIth in 90 Days
The insurers allow you to renew your policy within 90 days from the expiry date. If you manage to renew your policy within the given period, your policy is reinstated and you can avail the No Claim Bonus (NCB) discount on the renewed premium.
If You Miss The 90 Days Period
If you fail to renew your policy within the 90 days period, your policy gets nullified. It cannot be restored. You will have to purchase a new policy. Furthermore, the NCB generated from your previous policy will become invalid.
How To Renew A Lapsed Insurance Policy?
You can renew your lapsed policy both offline and online. You will need to visit the office of your insurer for the offline renewal. For the online renewal, follow these steps:
Step 1: Visit the website of the insurance company.
Step 2: Enter the details of your two-wheeler and your insurance policy.
Step 3: Select the details for your renewed policy.
Step 4: Make the payment for the premium using any of the given online payment gateways.
Step 5: Once the renewal has been processed, you will receive the policy documents via the registered mail ID.
If you opt for the offline mode, the insurer will inspect the two-wheeler before processing the renewal application. Unlike the offline renewal procedure, the online renewal procedure does not require an inspection of the two-wheeler.
If a policy is cancelled, you will have to purchase a new one. In the meantime, you will not get any coverage from your insurer. Timely renewal is one answer to a lapsed policy and the second one is a long term insurance policy. A long term policy will ensure a longer coverage and reduce the chance of your policy getting lapsed.
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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.