Renew Your Bike Insurance On Time

Two-wheeler insurance plan covers various risk factors and it will help in fulfilling your legal obligation. You should be in possession of a valid motor insurance plan if you own a motor bike. A bike insurance plan will be issued for one year. You can subscribe to long-term plans as well. The insurance policy should be renewed on or before the expiry to enjoy special benefits and get continuous protection of the vehicle, rider and the third-party damage. Most of the insurance companies will send an alert by SMS or email so that you can renew the policy before the deadline.

Why should you renew the insurance policy?

The insurance policy is a contract between the insured and the insurance company. During the policy period, the auto insurance company will pay for the damages that take place due to accidents. The insurance company will be obliged to protect your interests during the policy period only. Hence, you should renew the policy before it expires so that you will enjoy the benefits of the insurance policy without fail.

  • Financial protection There will not be financial burden when you buy the most appropriate two-wheeler insurance policy.
  • Mandatory by law- You should buy a two-wheeler insurance policy as per the motor vehicle act in India.
  • Cashless garage service There are insurance companies, which offer cashless garage service from a list of authorized garages. The bike will be repaired or restored at the service station as the insurance company will make payment automatically to the service station.
  • Discounts by the insurance company When you renew the insurance policy before the deadline, you will enjoy special discounts offered by the insurance company. Some of the discounts offered by the insurance company include no claim bonus.
  • Transfer of NCB The No Claim Bonus (NCB) can be transferred very easily when you renew the insurance policy.
  • No inspection When you renew the insurance policy before the deadline, the vehicle inspection is not required.
  • Online renewal facility You can renew your motor bike insurance policy online without any difficulty.
  • Customization of the insurance policy The insurance policy can be customized while renewing the policy.
  • Premium negotiation If you manage an active insurance policy, you will be able to negotiate with the insurance company so that you can get discount on the premium. Certain features which are not relevant to your bike can be avoided so that you can reduce the premium.

Comparison of insurance plan

As you exercise the bike insurance renewal option, you can compare insurance plans offered by various insurance companies. By comparing the features across different insurance companies and policies, you will settle for the best plan.

  • Errors and omissions If there are any errors or omissions in the previous insurance policy, they can be rectified while renewing the insurance policy.
  • Accurate information You should update the information to the insurance company while renewing the policy. If there is change in location, occupation or usage of the vehicle, it should be brought to the notice of the insurance company. You may want to pay higher or lower premium as per the change in the event or circumstance.
  • Online renewal of the policy The insurance policy can be renewed online so that you can save time, effort and money.

Timely renewal of insurance policy

  • Discount on the premium – The motor bike insurance policy should be renewed before the deadline so that you will enjoy additional discount on the premium.
  • Avoid vehicle inspection If you fail to renew the insurance policy before the due date, the insurance company may insist upon physical verification of the vehicle. After the inspection of the vehicle, the IDV (Insured Declared Value) will be ascertained by the insurance company. If you renew the policy before the deadline, you will not want to bring your vehicle for inspection. The insurance company will apply the deprecation percentage based on the previous premium. Hence, you can save money and time by renewing the policy before the deadline.
  • Filling a new application form If your vehicle policy has expired, you will want to fill online/offline form with complete information to get a new insurance plan. Hence, you are required to spend additional time and effort in filling the application form. On the other hand, an active policy can be renewed within few minutes.
  • Application of NCB The insurance company will apply the No Claim Bonus (NCB) when you renew the policy on or before the deadline. You can renew a policy from a different insurance company as well. However, the renewal of the policy should be done before the expiry date. The new insurance company will grant the NCB while renewing the insurance policy.
  • Avoid higher insurance premium If you renew the insurance policy after the expiry date, you will pay higher insurance premium.
  • Risk to your vehicle If the insurance policy is expired, there will be risk to you and your bike.
  • Risk to the third party If you met with an accident and when you are not covered by an insurance policy, you will want to pay all the damages. There will be great financial loss. You might want to face legal sanctions as well.

Myths about renewal of the insurance policy

Most of the bike owners are not aware of the timely renewal of the motor bike insurance policy. The following myths are prevalent among customers:

  • Can be renewed on due date Some customers feel that that insurance policy should be renewed on the due date. As per the guidelines of IRDAI, you can renew the insurance policy 60 days before the expiry of the current policy. The new policy will come into force after the expiry of the current policy.
  • It is a sheer wastage of money The purpose of the insurance plan is to cover the risk. The insurance plan will cover various kinds of risk factors. If you ride safely during the policy period, you will not get immediate financial benefit. You will get incentive while renewing the insurance policy. The insurance company will offer NCB so that you will pay lower premium. If you met with an accident, the insurance company will pay thousands or lakhs of rupees as per the terms and conditions of the insurance policy. Hence, you should manage an active insurance policy at all times.
  • The insurance policy will not offer personal accident cover The bike insurance policy will offer personal accident cover up to Rs. 1 lakh. You can buy a policy to cover the rider as well.
  • The insurance policy is very expensive for my vehicle When you manage a luxury or sports bike, the insurance premium will be high. The protection offered by the insurance policy will also be in tune with the premium paid by the insured. The insurance plan will help in restoration of the damaged vehicle and the premium paid for the risk coverage is very small.

Benefits of motor bike insurance

There are many benefits associated with the renewal of the bike insurance plan.

  • Compensation The insurance company will pay compensation if your bike is involved in the accident. Even though the accident takes place due to your negligence, the insurance company will pay the compensation. If your vehicle is hit by another vehicle, you will be able to claim a compensation from the insurance company.
  • Protection of the owner and rider The insurance company will pay hospitalization expenses when the vehicle owner or the rider is injured in an accident. The insurance company will also pay compensation for the unfortunate death of the insured or the rider.
  • Third party coverage The insurance company will protect the third-party damage.  If there is death of injury of the other vehicle owner or rider or any other third person involved in the accident, the insurance company will pay the compensation. The insurance company will also pay for the thirty-party property damage.
  • Loss of vehicle The loss of vehicle due to natural calamities such as fire, floods and other natural disasters will be covered by the insurance policy.
  • Protection against theft If your vehicle was stolen, you can get compensation up to the IDV mentioned in the insurance policy.
  • No payment of penalty to the traffic police When you manage an active bike insurance policy, you will not want to pay penalty or fine to the traffic police.

Conclusion

As you buy a new insurance policy along with a new motorcycle, you should not forget to renew the policy before the due date. If you renew the policy before the expiry date, you will enjoy the special financial benefits offered by the insurance company. You can ride on public roads with absolute confidence as the risk will be borne by the insurance company. Hence, timely renewal is necessary to avoid escalation of the insurance premium. You should not take risk by riding on a bike which is not covered by an insurance policy as it is mandatory as per the motor vehicles act in India.

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