In India, it is mandatory for every two-wheeler to be covered by a bike insurance policy. It proves to be one of the best forms of financial security from untoward road accidents. It is also imperative to keep renewing your policy from time to time and save it from lapsing. If you renew your policy on time, you’re eligible to receive various benefits such as No-Claim Bonus (NCB).
NCB is basically a concession you receive on your premium amount if you don’t file a single claim in your policy term. However, if you forget to renew your insurance policy and it lapses then you also lose on all the accumulated bonus. Also, expired policies will land you in trouble because it is illegal to ride your two-wheeler without a valid insurance policy.
Consequences of riding a two-wheeler with an expired insurance policy
Once you miss out on your two wheeler insurance renewal date, as well as skip the grace period, you won’t receive any coverage. Also, you will be getting on the wrong side of the law.
Here are a few more consequences of riding a two-wheeler without a valid policy; keep reading.
- Heavy penalties
You might have to pay huge penalties in case you are caught riding your two-wheeler with an expired insurance policy. Major reason of policy renewal is the sense of security it provides youalong with the peace of mind that allows you to ride your bike anytime and anywhere.
- Third-party liability
As per the Motor Vehicles Act, 1988, having a third-party insurance policy is mandatory. Therefore, if you’re riding your bike with an expired policy and happen to meet with an accident, you might end up in legal trouble. Not to mention that you would have to pay for the damages from your pocket.
- Losing the NCB
Every year that you go without filing a claim, you get a concession termed as No-Claim Bonus (NCB) on your bike insurance. The maximum concession you can receive is up to 50% over 5 years. However, you are supposed to renew your policy before it expires. Certain insurance companies provide you with a grace period of 30 days as a second chance to renew your policy. If you still don’t renew your policy within this grace period, then your policy lapses and you lose all the accumulated NCB.
- Zero coverage
Overall coverage will be offered to you in case of an incident under comprehensive two-wheeler insurance. It also covers third-party damages along with own damage. But if your policy has expired, you will have to incur all the expenses on your own.
Here’s how you can renew an expired policy online:
- Visit your preferred insurer’s website, choose a policy with the help of a two wheeler insurance premium calculator to get a good deal that also suits your needs
- Then you will have to fill in the required details along with the vehicle and nominee details
- Once all of that is done, the last step would be to make the payment online through a suitable payment method.
Well, it isn’t that difficult to revive a bike insurance policy that has expired but it is always better to renew your policy on time.