It’s only human to forget something which is due after a year, like an insurance policy. Insurance policy is offered in two terms, one is short term or annual and long-term policies. As per government, owning a two wheeler insurance is mandatory under the law.
As per IRDA, owning third-party liability cover is mandatory as the vehicle may face any accident or mishap resulting in third-party damage on an unfortunate day. The idea here is to bring in a safe sense of driving, so that one does not have to be a part of any unfortunate situation, if so, he/she shall be liable to pay for the damages caused to the third-party. If the policyholder has both liability cover and comprehensive cover which covers personal accident and damages to the vehicle, he/she is on the right track. But what if one forgets to renew either of the policy? Will it get lapsed?
Insurance companies offer ‘Grace Period’, which allows additional time to the policyholder to renew the policy after the original renewal due date. If the policyholder is still not able to renew the policy, then the policy will lapse and this will affect at the time of purchasing a new Bike insurance resulting in higher premium rate.
If the policyholder wants to renew the policy after the grace period (usually given is 30 days) time, he/she has to get the vehicle inspected by an authorized personnel which will decide if the vehicle is eligible for insurance. There will be minimum charge for the same. Not renewing on time means losing no-claim bonus as well if there was any. No-claim bonus is a reward given to the policyholder by the insurer as a discount on renewal premium amount to maximum limit of 20%. This is applicable only if the policyholder has a comprehensive insurance cover. NCB can also be availed if the policyholder is changing the insurer within specified time limit.
One can renew the policy on both online and offline platform, whichever is comfortable. Online renewal takes very few minutes and less paperwork with digital transactions and one can get the documents easily via email the next minute of your payment. Offline renewal is time consuming and requires a lot of physical work, but if this is comfortable then the policyholder can go ahead with it. On renewal, you will also have the option to change term from annual to long-term as well. Opt for long-term or 3 years cover, this will save you from yearly renewals, and the insurer offers some great discounts and other benefits for long-term cover.
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