As per the Indian Motor Vehicles Act, 1988, all motor vehicles plying on the Indian road must have a valid third-party liability insurance policy. Riding a motorcycle without a two-wheeler insurance policy is illegal in India.
It is necessary to have an insurance policy as it provides financial protection against unfortunate accidents that may cause damages to the insured vehicle, damages to the third party property, and bodily injuries to pillion riders or pedestrians.
Having a bike insurance plan is a great way of taking care of the expenses you could suffer in case of damages incurred to your bike, which you would otherwise pay from your pocket.
If in case you fail to renew your insurance policy, you can face some unnecessary hassles. As two-wheeler insurance in India is mandatory by law, you will be liable to pay the penalty for riding an uninsured bike in India.
When you miss a two-wheeler insurance renewal, for more than 90 days from the date of expiry, you automatically tend to lose your NCB and renewing an insurance policy after the lapse of NCB results in a higher premium for you. If you get involved in an accident when your vehicle is uninsured, then the insurer does not pay the claim. You are exposed to all the financial risks.
5 Things to Know Before Two Wheeler Insurance Renewal
However, the following are the five things you can keep in mind before your two-wheeler insurance renewal.
1. Decide Before Your Plan Expires
Letting the insurance policies lapse is one of the biggest mistakes that one can commit. Lapsing an insurance policy opens the door to financial issues, which you had been shielded against earlier.
2. Compare Policies Online
Renewing insurance policies online gives you the advantage of comparing policies from different insurance providers free of cost. You can also assess the premium rates using a two-wheeler insurance premium calculator.
3. Take Note of the No Claim Bonus
If you make no claims for the entire policy year, you earn a No Claim Bonus at the time of renewal. Utilizing your No Claim Bonus during your two-wheeler insurance renewal can prove greatly beneficial to you. NCB is generally a reward from your insurer for your diligence. NCB can be accumulated over the years and the percentage of benefit received typically varies according to the provider you opt for.
4. Reconsider Your Cover
Along with time, your coverage requirements also change. So when you renew expired two-wheeler insurance, also consider your coverage and opt for an insurance plan accordingly.
5. Correct the Information Provided, If Wrong
Omitting some crucial personal details in the insurance form is the biggest mistake an individual can make while purchasing an insurance policy. This can lead to the rejection of any claim you make under the insurance policy, as well as the loss of your cover. In case of any discrepancy, speak with your insurer to get it rectified.
The best way to find the right kind of two-wheeler insurance plan for your vehicle is to compare policies online. It discloses all the policies that lie within your budget, helping you to choose the best out of them based on the coverage offered.
