Understanding Break-in Period in Bike Insurance Renewal

What is the Break-in Period in Bike Insurance Policy?

A bike break-in period is between the policy expiry and renewal dates. Let us understand this with the help of an example:

If you forgot to renew your bike insurance that was due on 30 April 2023. Instead you renewed it on 7 May 2023. In this case, the gap of 7 days between the policy renewal dates is called the break-in period.

The break in period is different for each insurer company. To know about your break-in period and its terms and conditions, you must read the policy document thoroughly.

What are the Consequences of a Break-in Period?

From legal troubles to financial obligations, you can face some severe problems when you do not renew your bike insurance even during a break-in period.

1. Legal Troubles

   As per the Motor Vehicle Act of 1988, all motor vehicle owners must buy at least third-party liability insurance to ride their vehicles on Indian roads. This means it is illegal to drive your bike without any insurance. If your uninsured two-wheeler is involved in an accident and causes injury to a third party, then there are chances of legal hassles.

2. No Financial Security

   The primary objective of any insurance policy is to offer financial security to the insured party against several unforeseen circumstances. You might face financial constraints if your uninsured two-wheeler is involved in an accident or gets stolen. During the break-in period, you do not have insurance coverage. Therefore, avoid riding your uninsured two-wheeler during the break-in period and renew it on time.

3. Effect on No Claim Bonus (NCB)

   During the break-in period, you can enjoy the benefits of a No Claim Bonus (NCB) for 30 to 90 days of the policy expiry. However, if you do not renew your motor insurance even during the break-in period, the NCB will become invalid. Hence, renew your bike insurance policy before or during the break-in period to avoid losing the accumulated NCB.

Common Myths about Break-in Period in Bike Insurance Policy

You might come across some myths while renewing your bike break-in insurance policy. It is therefore highly crucial to debunk some common myths about it. Mentioned below is a list of common myths to help you while renewing your two wheeler insurance policy during the break-in period.

Pro Tip: You can easily renew your bike insurance policy during the break-in period. However, renewing it before the expiry date is recommended to ensure risk coverage while driving.