• Break-In Period In Two Wheeler Insurance

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    Two-wheeler is a need today more than a luxury as it was in the olden days. Almost every household will have at least one two-wheeler to travel for their daily work commitments. And if you are living in a city, having a two-wheeler makes your life easier. Two-wheelers are one of the most convenient vehicles to travel be it for daily work or for long bike rides. However, it is a fact that two-wheelers are the most vulnerable vehicles towards road accidents and mishaps. In the past few years, road accidents and two-wheeler mishaps have increased exponentially. Therefore, a two wheeler insurance policy is a must have for all the two-wheelers which provides financial security during distress times.

    Making sure that the two wheeler insurance policy is active and valid at all times is very important. If it is a new bike, then the dealer mandatorily provides two wheeler insurance be it third-party liability policy or a comprehensive policy. But from there on, it is the responsibility of the owner to renew it on time without fail, so that you don’t compromise on the benefits provided. The insurance company provides multiple reminders to the insured when the policy is approaching the renewal date. Even so, it is seen that majority of the policyholders tend to forget to renew the policy on-time because of their busy schedule or sometimes on sheer negligence.

    To tackle this issue, the insurance company provides ‘break-in period’ also known as ‘grace period’, where in the insured gets a time extension of 30-60 days past the expiry date, to renew the two wheeler insurance policy. If the insured still does not renew the policy, then it will be lapsed or no longer valid.

    Consequences Of A Lapsed Two Wheeler Insurance Policy:

    • If the insured wants to renew the policy to continue enjoying its benefits after the break-in or grace period, he/she has to get the vehicle inspected by an authorised personnel from the RTO, who will certify the eligibility of the vehicle to reinstall two wheeler insurance. There will be minimum charge for the same.
    • It is necessary to renew the two wheeler insurance policy on time because you can lose no-claim bonus. No-claim bonus is a discount given by the insurer to the policyholder and not the vehicle, for not claiming the insurance during a policy year. This discount is applicable for the premium amount paid to renew the policy. The NCB discount can be availed to maximum limit of 50%. NCB can be transferred if you are changing the insurer.
    • If not renewed on time, the policy will be lapsed and riding with an invalid two wheeler insurance is equal to having no two wheeler insurance policy. This is a criminal offence and you could be jailed and fined for the same.
    • In this period where you have failed to renew the policy, if the vehicle faces any mishap or accident causing own damage or third-party damage, all the expenses and legal consequences will have to be borne by you. The insurance company will not be liable to help you in any manner on a lapsed two wheeler insurance policy.

    Renewal of Break-in Two Wheeler Insurance Policy:

    • Two wheeler insurance can be easily renewed online with minimal documentation and policy details. It is possible that you may not be happy with the services provided by your current insurer, so if you want to change the insurer this is the ideal time.
    • Online renewal can be done either on the insurer’s website, or on any trusted third-party website to enjoy a hassle free renewal process. If you are comfortable with the traditional method, you can do so by visiting the insurer’s office and completing the process.
    • If you have not renewed the policy on time and looking to renew during grace period, you have to get the vehicle survey by an authorised personnel sent from the insurance company who will inspect the vehicle for its maintenance, damages, replacement of parts, condition of the vehicle, kilometers, etc. The surveying inspector will charge a nominal fee for the same.

    Documents Required For Renewal of Break-in Two Wheeler Insurance Policy:

    If You Are Changing The Insurer:

    • 3 recent passport size photography
    • Identity proof (passport/DL/Aadhaar card)
    • Address proof as mentioned in any of the government ID proofs or bank documents
    • Personal details of the owner
    • Old policy number
    • Insured vehicle details
    • Registration Certificate
    • For online renewal, Credit/Debit card/Net banking details for payment.

    Renewing Online:

    All the process can be easily completed through online as it saves your time and it is eco-friendly. It only requires few clicks to renew the policy:

    • Necessary documents like policy details, Driving License, vehicle model, RTO details, registration certificate, etc. details should be with you.
    • Go to the insurer’s website and click on online renewal option, and enter the details in the appropriate boxes.
    • Before submitting, cross check the details entered in the boxes.
    • Once you submit the details, the insurer will send you a quote for renewal of the two wheeler insurance policy.
    • Make the payment via debit/credit card or NEFT transactions.
    • You will receive insurance documents immediately via email or you can download on the website.
    • For future convenience to renew the policy on time, you can set the reminder on insurer’s website

    Renewing Offline:

    • Visit the insurer’s office from whom you purchased the policy. Carry all the necessary documents like registration certificate, driving license, vehicle model, RTO details, policy details etc. with you.
    • Get your vehicle surveyed by the survey inspector. Once the survey inspector clears the inspection, collect the clearance certificate and submit it to the insurer with above mentioned documents. The insurance provider will review your documents submitted by you. If all the documents are correct, you will receive the policy through post to your address within a week.

    The premium amount on renewal of the policy will be either higher or lower depending on the following factors:

    • Insured Declared Value
    • Depreciation
    • Type of cover opted
    • Engine capacity
    • Vehicle condition
    • City of residence
    • Driving record of the owner
    • Make and model
    • Voluntary deductible
    • Age of the vehicle owner
    • Number of claims
    • Add-on covers
    • No-claim Bonus

    Rate Of Depreciation:

    Age of the vehicle Percentage of Depreciation
    Between 0 to 6 months 5%
    Between 6 months to 1 year 15%
    Between 1 to 2 years 20%
    Between 2 to 3 years 30%
    Between 3 to 4 years 40%
    Between 4 to 5 years 50%

    Riding a two-wheeler is fun and enjoyable, but staying safe and secure with a two wheeler insurance is very important as the traffic and road conditions are dangerous. As per the law, it is mandatory to at least have third-party liability cover according to the Motor Vehicles Act, 1988. The rate for third-party cover is set by the IRDAI after revisions every year that is affordable to all. If you choose to increase the cover for the vehicle and yourself, you can opt for a comprehensive two wheeler insurance policy. Remember, a two wheeler insurance policy covers all the damages caused to the vehicle and the insurer will bare the cost of repair of the vehicle which otherwise has to be borne by you. So do not let your policy expire and make sure to renew it on time.

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