In India, all two-wheelers must have a valid third-party bike insurance policy per the Motor Vehicles Act of 1988. Standard bike insurance policies typically last one year and must be renewed. Failure to renew on time can result in a ₹2,000 fine and a 3-month jail term. Repeated violations can lead to a ₹4,000 fine and a one-year jail sentence for the bike owner.
Renewing bike insurance is more accessible now with digital processes. You can renew it through the insurance company’s website with simple steps and electronic payment from home. However, some common mistakes in renewal can lead to bike insurance claim disputes and loss of benefits, which are avoidable. Here they are:
- Failure To Claim Your NCB
The insurance company rewards the policyholder for not filing a claim during the policy’s term with the No Claim Bonus (NCB). Customers frequently overlook receiving this benefit when they renew.
Essentially, NCB is a concession to reduce your motorbike insurance renewal premium. You can claim it within 90 days after your policy expires, so renew your bike insurance well before it ends for the ideal coverage. *
- Neglecting The Terms And Conditions
Insurance providers may change their terms to comply with regulations and ensure business continuity. When renewing motor insurance, carefully read the updated terms and exclusions to ensure your needs are covered. Stay informed about policy changes to make well-informed choices and understand your compensation in case of a claim.*
- Giving False Information
The most common and avoidable mistake during two-wheeler insurance renewal is providing false information. Be accurate with the owner’s name, registration number, and previous policy number. False information can void your coverage, so keep your bike’s registration certificate and previous policy document handy when renewing.
- Failure To Notify The Insurer Of Changes
Some motorbike lovers adore personalising their vehicles. If you modify your bike in any way, you must notify the insurance company of all the changes you make when your policy is renewed. In the event of a claim, this will prevent any disagreements. If they do not disclose the specifics of the modification, many owners might believe it is not a big deal. But, this kind of carelessness could make their insurance useless and give the business an excuse to deny or drastically lower their claim.
- Leaving the renewal process until the very last minute
Renewing your two-wheeler insurance policy well before its expiration date would be ideal. There is no time to determine your insurance needs or make policy adjustments if you wait until the last minute to renew your bike insurance policy. In such a case, you may rush to pay the premium and obtain a policy that falls short of your needs for bike insurance.
After it has expired, you can still renew your policy, but doing so might increase the premium and the requirement for an inspection. Additionally, it removes all risk protection for your bike.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.