Know All About Lapsed Two-Wheeler Insurance Plan

What is a Lapsed Two-wheeler Insurance Policy?

A lapsed two-wheeler insurance policy is a policy that has expired and is no longer active. This happens when you fail to renew your policy before its expiration date.

What Happens When You Fail to Renew Bike Insurance Policy On Time?

Here are the consequences of not renewing your bike insurance policy on time:

• No Coverage: If your policy has lapsed, you're no longer covered for any damages or losses. If you're involved in an accident, you'll have to bear all the expenses yourself, which can be financially devastating.
• Legal Trouble: Riding without a valid bike insurance policy is illegal in India. You will have to pay a fine of ₹ 2,000/- and even face imprisonment.
• Loss of No Claim Bonus (NCB): If you have accumulated a No Claim Bonus (NCB) for claim-free years, you will lose it if your bike insurance policy expires. Basically, NCB provides discounts on your premium during the renewal of own-damage bike insurance policy. Hence, losing it means paying more premium.
• Difficulty in Renewing: Renewing a lapsed or expired policy can be more complicated and expensive. You may have to undergo a vehicle inspection and pay a higher premium.

How to Renew an Expired Bike Insurance Policy?

Even if you miss the renewal date, there is still a chance to revive your coverage. Usually, in India bike insurance companies offer a 90-day grace period after your policy expires to renew it without losing benefits like your No Claim Bonus (NCB).

You can easily renew your lapsed insurance policy through two modes, i.e. online and offline mode.

1. Online Mode

   It is as easy as surfing the Internet. The online mode of renewing the lapsed policy is easy, hassle-free, convenient, and time-saving.

   Follow the steps mentioned below for bike insurance renewal within a few seconds:

   • Step 1: Keep the required documents like previous policy details, and vehicles’ registration numbers handy.
   • Step 2: Visit the official website of Policybazaar Insurance Brokers Private Limited and hover to ‘bike insurance’ tab under ‘insurance products’ drop-down.
   • Step 3: Enter your bike registration number and click on ‘View Plans’ .
   • Step 4: Select the asked information about your bike, personal details, and nominee details.
   • Step 5: Compare multiple bike insurance plans online offered by various insurers and choose as per your need.
   • Step 6: Make payment using your Debit/Credit card, UPI, etc.

   Just like that it is done. At last, your insurance provider will email the soft copy of your renewed policy to your registered email id.

2. Offline Mode

   It is a traditional mode of renewing a bike insurance policy. You can also renew your policy in offline mode. Here you will go to the branch of your insurance provider.

   You must carry your documents related to the policy and vehicle. Once the documents are received by the insurance provider, the renewal process will be initiated. Since your policy lapsed, your vehicle is subjected to inspection prior to its renewal.

Why Choose Online Mode Over the Offline Mode?

As you know the online mode of 2-wheeler insurance renewal is simpler than offline, hence you can choose this.

When a bike insurance policy lapses, it is mandatory (as per the company policy of some insurers) that your vehicle needs to undergo a thorough inspection before the renewal of a lapsed policy.

When you renew a lapsed policy online, you have the liberty to skip this additional step.

How Can You Reinstate Your Expired Bike Insurance Policy?

Forgot to renew your two-wheeler insurance? Don't worry, you can usually reinstate it, but you need to act fast! Here's how:

1. Contact Your Insurer ASAP

   Within a few days: If you are only a few days past your renewal date, your insurer might renew your policy without any penalties.

   Missed payment attempt: If you tried to pay before the expiration date but something went wrong, let your insurer know. They may waive the inspection.

   Important Notes

   • 90-Day Limit: You typically have 90 days after the expiration date to renew your existing policy. After that, you will need to buy a new one, which involves more paperwork and a vehicle inspection.
   • Don't Ride Uninsured: Riding without insurance is illegal in India. Renew your policy as soon as possible to avoid penalties and legal trouble.

How to Avoid Lapses in Bike Insurance Policy Renewal?

The answer to this question is that you should opt for a long-term two-wheeler insurance policy. It is easy to understand that it provides you with coverage for up to 3 years.

The following are the benefits of a long-term bike insurance policy:

• It relieves you from the responsibility of constantly keeping a track of the policy due date. This is very helpful for people who hold multiple policies.
• It safeguards you against the risks of non-renewal, including challan.
• It immune you to yearly change of the premium rate because of inflation, as you have opted for a long-term policy.

Is it Necessary to Renew all the Add-on Covers During Policy Renewal?

No, it is not compulsory to renew all the add-on covers (additional riders), which you might hold with your bike insurance plan.

Add-on covers like NCB protection cover, zero depreciation add-on cover, or engine protection cover extend your coverage by paying a little extra premium.

Hence, renewing these riders is your call and also it depends on your driving skills. However, you have to renew third party bike insurance, as it is mandatory cover in India.

Over to you!

To conclude, as much as you like living on the edge, riding an uninsured two-wheeler is as safe as walking between two steep cliffs. This not only risks your bike or your life but you are legally and financially liable for the consequences. This might sound too dramatic but by doing so you will take the law into your own hands. Therefore, renew bike insurance policy on time or before the expiry date to keep the coverage intact.