The Dangers of Letting Your Bike Insurance Lapse

Two-wheelers are definitely the handiest and most cost-effective mode of transportation to get you anywhere. However, bikes are also vulnerable to accidents due to various road conditions. Therefore, it is essential to have a valid bike insurance policy before plying your bike on roads. But what happens if you don't renew your bike insurance after it's run out? In this article, we'll discover this.

What Is A Lapsed Two Wheeler Insurance?

Every bike insurance provider will give the policyholder a grace period during which you can renew your coverage. If you fail to renew your bike insurance coverage during this time, you must pay for the expenditures incurred due to the accident. When you do not renew your two-wheeler insurance coverage even after the grace period is over, it is considered a lapsed or expired two-wheeler insurance.

How Failing To Renew Your Bike Insurance Policy Is A Major Problem?

Despite regular reminders from insurers, two-wheeler insurance holders can become complacent when renewing their bike insurance. Renewing your two-wheeler insurance promptly is critical to keeping your vehicle and yourself safe, and failure to do so can result in various issues. Some of them are as discussed below:

⮚   Loss of No Claim Bonus

A no-claim bonus (NCB) is a discount in premium granted by insurance companies if a vehicle owner has not filed a claim during the policy's term. Suppose you renew your insurance policy within the grace period. In that case, you will continue to be eligible for NCB, which can range from 10% to 50% of the insurance cost, depending on the terms and conditions of the bike insurance policy. However, a policy break can result in the loss of collected benefits.

⮚    Rising Expenses

A bike insurance policy acts as a safety net, protecting you against various risks and disasters. If you do not renew your policy in time, you will not be able to profit from the insurance cover in the event of a sudden occurrence such as an accident or theft, regardless of a strong track record in the past. Driving a bike with expired insurance can be dangerous and is not recommended at all.

Failure to renew a policy can significantly increase the expenses of repairs, putting a strain on your resources. If an accident occurs while your insurance policy has lapsed, you would be responsible for all damages to your bike and any losses made to a third party.

⮚    Regulatory Problems

According to the Motor Vehicles Act, it is mandatory for every vehicle owner to have at least third-party insurance coverage. In case a traffic cop discovers you driving without a valid bike insurance policy, the fine will go up to Rs. 2000. Moreover, in some cases, the bike owner can be sentenced to prison for up to 3 months.

⮚    Time-Taking Process

It is always preferable to renew your two-wheeler insurance coverage before it expires rather than after it has expired. When your bike insurance policy expires, it can be exhausting and time-consuming to go through the entire process of purchasing a new policy.

In addition, all formalities and documentation will have to be completed again. You'd have to get your bike examined, and there's a chance your insurance coverage might be denied. On the other hand, renewing your two-wheeler insurance in time is simple and can be done online in just a few clicks.

⮚    Legal Liabilities

Your bike insurance policy covers all financial and legal liabilities against the damages or loss caused to the third party in the unforeseen accident. If you are driving your bike with a lapsed insurance policy, you will have to bear all the legal liabilities on your own. These significant financial and legal penalties can put you and your family under financial and emotional strain.

⮚    No Financial Safety

When you have a comprehensive bike insurance policy, it offers financial protection against various damages, such as theft, burglary, bike crashes, natural disasters, man-made disasters, etc. If you do not renew your bike insurance policy in time, your bike will not be protected against any financial expenses. Therefore, you will have to bear such expenses from your pocket.

Making sure your bike insurance is up to date is necessary and can also save your money in the long run. As a result, make sure there is no lapse in your policy and that you have appropriate coverage for your bike.

(Above mentioned article is consumer connect initiative. This article is a paid publication and does not have journalistic/editorial involvement of IDPL, and IDPL claims no responsibility whatsoever.)