A bike insurance policy guarantees financial protection during mishaps, theft, natural calamities, and accidents. There are three types of insurance plans available in the market—standalone own-damage policies, third-party liability plans, and comprehensive bike insurance policies. Remember, all insurance plans come with an expiry date. Thus, you must renew bike insurance every year for continual coverage.
In India, all bike owners must have two-wheeler insurance. Being caught riding your bike without valid bike insurance can attract hefty fines.
Let’s learn more about vehicle insurance renewal and the best time to do so.
What is a policy term?
In bike insurance, the ‘policy term’ refers to the duration for which the policy is active and provides coverage. Bike owners can choose between short-term and long-term plans based on their needs. However, it is important to renew the insurance policy before the expiry of the term to keep it active.
What is the best time to renew bike insurance?
Usually, bike insurance policies are valid for a year. However, you may opt for multi-year policies with a validity of up to five years. In India, long-term third-party insurance, valid for five years, is mandatory for new bike owners. More so, you should renew bike insurance before the due date to enjoy uninterrupted coverage.
Here’s when you must renew your bike insurance for continuous coverage:
- If your vehicle insurance policy has a one-year term, then you must renew it each year. To do away with annual renewals, you can opt for multi-term or long-term insurance policies.
- If you have purchased a short-term or annual policy, then renew it about 15 days before the due date. Let’s say that your Hero bike policy is expiring on 1st April, then you can renew your ICICI Lombard Hero Insurance policy by 15th March. This way, you have some buffer days to renew your bike insurance policy in time.
What to do when your bike insurance lapses
If you miss the due date, then immediately contact your insurance company and ask about the grace period. Some insurers allow you to renew bike insurance within a grace period so that you can continue to enjoy the benefits and discounts. However, remember that although insurers permit renewal within the grace period, you do not get coverage until you renew the policy.
More so, you cannot renew expired vehicle insurance. You must buy a new policy to obtain coverage. In such cases, the insurer may ask for your bike to be inspected and may charge you a higher premium rate. All this can increase your overall bike insurance renewal costs. Additionally, a policy lapse means a reset of any accumulated No Claim Bonus.
Consequences of a lapsed bike insurance policy
If you fail to renew bike insurance by the due date and it expires, you will be left with no financial protection against third-party liabilities and other losses. Other challenges of a lapsed bike insurance policy include:
- Legal hassles and penalties if you are caught without valid bike insurance
- Zero compensation from the insurance company if your bike gets stolen
- Zero coverage for any bike damages
- Zero coverage for third-party liabilities
- Loss of the accumulated No Claim Bonus
- Higher premium for Hero insurance your Hero bike
- Getting your bike inspected by the insurer before the issuance of the new policy
Bike insurance policy renewal: Things to know
- If you have third-party bike insurance, consider switching to a comprehensive plan for protection against own damages.
- If your bike has new installations, ask your insurer if they can be included in bike insurance. You may even get a discount on the premium if the installations enhance the security of your bike.
- If you have a Hero bike, consider buying relevant add-ons to boost the coverage of Hero insurance by ICICI Lombard.
- Compare various two-wheeler insurance policies before settling for the one that meets your needs and is within your budget.
Final thoughts
You must renew your bike insurance policy in time to enjoy continual coverage and retain discounts and benefits from your existing policy. Reconsider your requirements before renewing the policy to see if you need any add-ons for enhanced coverage. Importantly, set reminders to avoid policy lapses and related hassles.