Maximising Benefits: The Importance of On-Time Bike Insurance Renewal

Introduction

Let’s revisit a fundamental yet often forgotten fact: under the Indian Motor Tariff 2002, all two-wheeler owners are mandated to have at least third-party insurance. Amid our busy lives, it’s easy to overlook insurance renewal deadlines, but riding uninsured exposes you to financial penalties and legal consequences.

Suppose your bike sustains severe damage while uninsured. Now you’re left shouldering the repair costs, adding stress and financial strain.

Therefore, timely bike insurance renewal online is paramount to sidestep such predicaments. 

Advantages of Timely Renewal of Bike Insurance

1. Avoid Legal Penalties

Riding without having a valid insurance policy is a legal offence. Failure to renew your two-wheeler insurance on time exposes you to penalties imposed by legal authorities. 

2. Maintain Continuous Coverage

Having valid bike insurance is essential because it provides you protection against damages, theft, and third-party liabilities, as well as fines for not having one. Generally, an insurance policy may expire in 5 years (for newly purchased vehicle)

, so one needs to renew it before this period. When your policy expires, your bike becomes vulnerable to various threats. 

3. Avoid Bike Inspection and Premium Hike due to Break in Policy

Break in Policy is a time gap between the policy expiry date and renewal in bike insurance. The bike insurer will send an executive within the grace period of 90 days to look into the condition of your bike and then send you a renewal note. Timely renewal of your bike will help you eliminate frequent bike inspections by the insurers.

On-time renewal of bike insurance will also protect you from instant premium hikes by the insurers. Bike inspection by the insurers will ultimately lead you to a potential premium hike. For example, comprehensive bike insurance (INR 5,000 a year) requires a re-check on renewal. After a lapse, the insured has to bear the consequences of minor damages, resulting in a 20% premium hike, amounting to INR 6,000 for the renewed policy.

4. Retain No Claim Bonus 

No Claim Bonus or NCB is a discount from an insurance company if you do not file any claim during the policy period. It is valid for 90 days from the insurance policy renewal date. Claiming this discount can help reduce your premiums to a great extent.

5. Customise your policy

Renewing on time allows for policy customisation , tailoring coverage, adding riders, and retaining benefits of bike insurance like NCB, etc.  

Process of Renewing Bike Insurance Online 

• Evaluate your current insurer and compare it with other plans before renewal: Before renewing your bike insurance, check what your current insurer offers. Compare it with other plans. Always consider coverage, premiums, customer service, and discounts for an informed decision.
• Provide Bike Details: Provide the bike details and your personal information. Ensure that you correctly fill in your details to avoid any discrepancies. 
• Compare features and add-ons: When renewing bike insurance online, you must compare the features and add-ons. Various insurers offer add-ons and this allows you to assess coverage limits and deductibles. You can also see extra benefits, like roadside assistance or accessory coverage.
• An inspection might be required if not renewed on time: When renewing bike insurance online, timely renewal is crucial. It helps to avoid potential problems. Failure to renew on time may require a vehicle inspection before policy issuance.

• Pay the premium: Make the online payment securely through the insurer’s platform. You will receive all your essential documents instantly in your mail.

• Get Policy document: Now that your policy has been renewed, it’s essential to carry it with you when you step out for your next ride. 

• You risk jail time or heavy fines if you are found to be riding without valid insurance. Driving the vehicle without valid insurance may cost up to Rs. 2,000 and/or imprisonment of up to 3 months.
• It protects you financially against both man-made and natural disasters. If your bike is damaged by floods, earthquakes, fires, riots, theft, etc., bike insurance will cover the repair or replacement costs. 
• It provides damage coverage. Additionally, your bike insurance may pay for repairs if you are at fault for any bike damage, such as an accident or collision. This may save you from having to pay cash.
• It protects you against third-party liabilities. If you ever injure someone, third-party legal obligations and the medical costs will be covered by the bike insurance, and the cost will be decided based on the accident’s severity. This will shield you from being sued by the legal authorities or any compensation to be given. 

Key Takeaways

Timely renewal of bike insurance is not just a recommendation but a necessity under the Indian Motor Tariff 2002. It helps you avoid legal penalties, ensures continuous coverage, retains valuable benefits like the No Claim Bonus, and allows for policy customisation to meet your specific needs. With the ease of online renewal processes, there’s no excuse for leaving your bike uninsured. Remember, having valid insurance provides essential protection against financial burdens and legal consequences, making it a crucial aspect of responsible bike ownership in India. Additionally, platforms like PhonePe provide a smooth and convenient insurance purchase experience.