If one fails to renew their bike insurance within the due date, the policy can lapse. While travelling abroad, you can make use of the insurer’s website or app to handle a lapsed bike insurance plan online.
Bike insurance is an essential policy that can help two-wheeler owners comply with the law and take care of any third-party and own damages with ease. However, it is offered for a specific duration, after which it expires and needs to be renewed if you want to enjoy continued coverage. As a responsible bike owner, it is your duty to stay up-to-date with your policy and get it renewed on time. However, more so often, people tend to forget to renew their insurance on time, letting it lapse. If you have found yourself in a situation where you have to handle a bike insurance lapse while travelling abroad, go through the contents of this page.
What is a lapsed bike insurance policy?
Bike insurance is valid for a specific duration, generally a year for a standard plan, and needs to be timely renewed to enjoy continued coverage and benefits under the policy. Not renewing a bike insurance by the due date can cause it to lapse. Having a lapsed bike insurance policy is equivalent to having no policy as the insurance company stops offering the coverage and associated benefits of the plan to individuals having a lapsed bike insurance plan.
How to take care of bike insurance lapse when travelling abroad?
While travelling abroad, if you find that your policy has expired, make sure to first find out whether it is still within the grace period. Some companies offer a grace period of 30-90 days from the policy expiration date, within which policyholders can renew their expired plan with the same coverage without losing out on the accumulated benefits. If it is within the grace period, there are two ways to handle it, the offline method and the online method. Considering you are travelling abroad, you can follow the steps under the online method;
- Step 1: The first thing is to collect the details of your current bike insurance plan and the vehicle.
- Step 2: Once you have all the details, visit the official website or app of your insurer, navigate to the bike insurance category and click on the renew existing policy option.
- Step 3: Either provide the existing policy number or the vehicle’s registration number and other information to pull up the plan details.
- Step 4: Go through the plan details and make any adjustments that you find necessary.
- Step 5: After that, proceed to the payment window and complete the online payment to complete the bike insurance policy renewal.
Note that in most cases, a lapsed bike insurance plan can not be renewed after the grace period is over. So, in such scenarios, the only option to handle lapsed bike insurance is to purchase a brand-new third-party or comprehensive bike insurance policy.
Disadvantages of bike insurance lapse
A lapsed bike insurance policy can have severe consequences, such as;
1. Exposed to risks:
One of the main disadvantages of having lapsed bike insurance is that you are no longer covered under the plan. Bike insurance can not only cover third-party liabilities but also own damages caused by accidents, theft, man-made hazards, natural calamities, etc. Hence, with a lapsed bike insurance plan, you are exposed to these types of risks without any financial coverage from the insurance company. So, in the event of an accident, you will have to pay for the damages caused to your bike and any third party out of your own pocket.
2. Severe fines:
As per the Motor Vehicles Act of 1988, all two-wheeler owners need to have valid motor insurance for their vehicles to legally ride on Indian roads. A lapsed bike insurance policy means you are no longer covered, hence it is not valid. Riding your bike without a valid insurance plan is against the law and can attract a fine of INR 2,000 for the first offence and/or up to 3 months of jail time.
3. Loss of No Claim Bonus (NCB):
No Claim Bonus or NCB is a discount on policy premiums offered to policyholders by insurers for going through a term year without making any claims. It starts from around 20% and can be stacked up to a maximum of 50% for consecutive claim-free policy years. With NCB, you can enjoy the same extensive coverage at lower costs. If you fail to complete your comprehensive bike insurance renewal even within the grace period offered by the insurer after its expiry, it can cause the plan to lapse, which leads to the loss of all accumulated no claim bonus (NCB).
4. Need for a new policy:
Generally, if one fails to renew their bike insurance before its expiry, the insurer offers a grace period starting from the day of expiration. However, if one fails to renew their policy even during this period, their policy lapses. They can no longer renew the same policy or enjoy its coverage and accumulated benefits. In such cases, one has to buy a new third party or comprehensive bike insurance plan, which may involve pre-inspection and other procedures required for purchasing a new plan. In certain cases, this can cost you more time and money.
How to avoid bike insurance lapse in the future?
A bike insurance policy lapse can bring in tons of issues that are difficult to deal with. The best way to tackle it is to not let it happen in the first place. Here are some useful tips that can help you avoid bike insurance lapses in the future;
1. Keep note of alerts from the insurer:
When buying a third-party or comprehensive bike insurance policy, you share contact information, such as your email ID and phone number, with the insurer. The insurer uses these details to send you timely alerts about your policy, including reminders for renewals via SMS, WhatsApp text, email and call. Make sure to keep an eye out for these alerts so you can be reminded of timely renewals.
2. Stay up-to-date:
As the bike owner, it is your duty to stay up-to-date with your vehicle’s documents. So, make sure to check your motor insurance policy details via the insurer’s official app or website from time to time, so you can always stay informed about your renewal dates. Also, it is generally advised that you renew your policy before it expires to enjoy continued coverage.
3. Invest in a multi-year plan:
Investing in a long-term or multi-year bike insurance policy eliminates the need to renew the policy on time every year. With this plan, you only need to renew the policy every 3-5 years, depending on the plan picked.
4. Set a personal reminder:
You can set a personal reminder about your third party or comprehensive bike insurance renewal on your phone, so you get reminded about it on time.
Conclusion:
Renewal of bike insurance on time is very important if you wish to enjoy continuous protection and benefits under the plan. In case you miss its timely renewal, you can make use of the grace period offered by the insurer to get it renewed without missing out on your accumulated benefits. A lapsed policy doesn’t offer any type of coverage, exposing you and your bike to various potential risks. If you are travelling abroad, you can renew your lapsed third-party or comprehensive bike insurance online via the insurer’s website or app within the grace period.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.