Expired Bike Insurance: A Costly Mistake

Introduction

Riding your bike in the lively commotion of Indian traffic is an adventure. Your bike becomes your trusty companion on the road. However, bike insurance is one important thing every rider must not overlook in this commotion. Bike insurance offers many benefits, like legal compliance, financial support, and peace of mind. 

If your bike insurance expires and you do not renew it on time, you might make a costly mistake without realising it. Stay with us as we discuss what happens when your insurance isn’t up to date. We’ll break down the list of problems that come with it—problems you don’t like to deal with.

Consequences of Expired Bike Insurance

Rohan, a 32-year-old chartered accountant, whizzes through traffic on his trusted 150cc Pulsar, which he always keeps in perfect condition. But he didn’t pay attention to the hidden danger- his bike insurance expired a month ago, and he didn’t have the time to renew it. This oversight can result in the following consequences if he is involved in an accident:

• No Financial Coverage – Rohan won’t have any financial help for his bike or third-party property damage. Even if the accident were minor and only the lights were broken without any bodily injuries, Rohan would be stuck paying the entire bill for fixing his bike. Moreover, if he has valid personal accident insurance, it can also compensate for the temporary or permanent disability caused by the accident. 
• Penalties – Driving without valid insurance is a significant violation. The law requires every bike to have at least basic third-party insurance. Rohan may have to pay a fine up to ₹2,000, he could lose his license, get his vehicle impounded, or even spend three months behind bars. 
• Loss of  No Claim Bonus (NCB): When you miss renewing your insurance, you miss the No Claim Bonus (NCB), a reward for keeping your bike free from accidents. Rohan will lose a 20% to 50% discount on the insurance cost because insurance must be renewed before or within 90 days of policy expiry to avail NCB.

How to Renew Expired Bike Insurance

If your bike insurance expires, you can renew it during the 90-day grace period without losing the No Claim Bonus (if applicable). Furthermore, you can renew your expired bike insurance if you exceed the grace period. However, your vehicle might have to be inspected physically or online self-inspection if you buy through online platforms before insurance is granted. The insurance cost, or premium, is determined based on your bike’s type and current value, age of the bike,  chosen coverage, and add-ons.

Renewing Expired Bike Insurance:

Renewing expired bike insurance can be done online and offline. Here are the steps for renewal of two-wheeler insurance after expiry.

• Look into the grace period for renewing your bike insurance; it can be up to 90 days (depending on your old policy). You can renew without losing No Claim Bonus (NCB) benefits before or during this grace period.
• Plan which type of insurance you want to renew- third-party or comprehensive. If third-party insurance is due for renewal, you must renew that at least.
• Compare plan benefits and insurers you want to get your insurance from. You can choose a new insurance provider when renewing your bike insurance.
• Decide on your bike’s Insured Declared Value (IDV) and relevant add-ons.
• Pay online and get your policy document in your email.
• Check the policy document once it is received. If you spot any errors, contact the insurer or platform from where you buy to fix them through the policy endorsement process.

Key Takeaways

Don’t overlook expired bike insurance—it’s a costly mistake. Losing the No Claim Bonus hurts your savings, and riding without insurance means paying for car damage costs yourself. Renewing is easy—check the grace period, go online, pick a good policy, pay, and check the details. It’s not just about money but a safe and worry-free ride. So, keep your insurance in check for smooth journeys ahead.

Additionally, consider platforms like PhonePe for a seamless and hassle-free insurance purchase experience.