Every product comes with an expiry date. Similarly, a bike insurance policy that secures your bike against damages comes with an expiry too. Being a responsible driver, you must remember the date of expiry because riding with expired bike insurance does not make you eligible to get any coverage. Thankfully, with the grace period offered by the insurance company, you get a chance to renew an expired bike insurance policy. Read on to know everything about the grace period in two-wheeler insurance renewal.
What is the grace period in two-wheeler insurance?
There are times when a bike owner despite receiving several renewal reminders from the insurance company misses out on renewing the policy. At such times, the grace period in insurance gives the bike owner a second chance to renew the policy. The grace period is an extension of 30 days during which the bike owner can renew the insurance policy.
Importance of grace period in bike insurance
During the grace period coverage is not offered to the policyholder. The period which may vary from insurer to insurer is restricted to only providing a chance to the vehicle owner to renew the expired policy. The accumulated no claim bonus stays intact for a period of up to 90 days from the date of expiry.
Timely renewal of two-wheeler insurance is important as riding without a bike insurance policy is illegal. The Motor Vehicles Act, 1988 makes it mandatory for vehicle owners to insure the bike with at least third party bike insurance, hence, making it important to renew the policy from time to time.
What happens to the No Claim Bonus after policy expiry?
No claim bonus i.e. NCB is a discount offered to the policyholder for making no claims in a policy year. This discount is offered up to 50% for not raising claims for five consecutive years.
After 90 days of policy expiry, the policyholder loses the accumulated NCB. Hence, if the policy is not renewed within 90 days, the NCB discount is lost.
What is the best way to prevent a lapse in two-wheeler insurance?
A bike insurance policy lapses after the 30-day expiry and grace period. This type of policy cannot be renewed and the bike owner has to go through the inspection process again to get the policy issued.
The best way to avoid the lapse of a two-wheeler insurance policy is to renew it on time. Insurance companies do send timely reminders, asking you to renew the policy on time. These reminders are sent in the form of emails, SMS, whats app messages and even calls.
Another best way to avoid bike insurance lapse is to buy long term two wheeler insurance which provides coverage for 3-5 years. Choosing to buy a long term plan can also help you get a discount.
Even though the grace period helps you renew the policy before the policy lapse, it is always best to set renewal reminders to renew the insurance coverage on time
How to renew two-wheeler insurance?
You can easily renew two wheeler insurance online from the comfort of your home. You can renew through an online broker like Coverfox.com or can directly contact the insurance company. It is important that you don’t miss out on policy renewal because if you don’t renew on time, you will lose out on the coverage and can land in legal and financial trouble in case an accident or third party damage is caused during this period.
At the time of renewal, don’t miss out on reading the policy documents. Check on inclusions, exclusions, insured declared value, etc. and buy additional riders to get enhanced coverage.