Understanding Grace Period in Two-wheeler Insurance Renewal

What is the Grace Period in Bike Insurance?

A grace period in bike insurance is an extended timeframe given to policyholders who miss renewing their bike insurance policy before the expiry date. It serves as a second chance to renew the policy without losing accumulated benefits. During the grace period, your two-wheeler remains uninsured, meaning any damages or liabilities will not be covered.

Most bike insurance companies offer a grace period of up to 30 days after the policy expires. However, some insurers may provide an even longer grace period of up to 90 days, giving you extra time to renew your two-wheeler insurance without hassle.

Remember that delaying your bike insurance renewal beyond the grace period can result in policy termination and loss of accumulated benefits like No Claim Bonus (NCB).

What if You Are Unable to Renew Your Bike Insurance Policy on Time?

Failing to renew your bike insurance policy on time leads to several consequences, the most significant being policy lapse. Once your policy expires, you lose coverage and any accumulated benefits, such as the No Claim Bonus (NCB). This can result in a higher premium when renewing or purchasing a new policy, as NCB discounts can go up to 50%.

Additionally, an expired policy means you are not protected against third-party liabilities and damages or losses arising in an accident. Besides this, riding a bike without two-wheeler insurance is a legal offence in India.

In fact, as per the Motor Vehicles Act, 1988, it is mandatory to have at least third-party bike insurance. If caught without valid insurance, you might have to face hefty fines or even imprisonment for up to 3 months.

Significance of Bike Insurance Grace Period

Take a look at the importance of grace period in bike insurance:

1. Extra Time for Renewal

   The grace period offers you extra time (usually 30 days) to renew your bike policy after it expires.

2. Prevent Policy Lapse

   The bike insurance grace period helps avoid a policy lapse, ensuring you do not lose your coverage during this time.

3. Retain No Claim Bonus (NCB)

   By renewing 2-wheeler insurance policy within the grace period, you can retain your NCB, which could reduce your renewal premium by up to 50%.

4. No Need for Re-Inspection

   During the grace period, insurers usually do not require a fresh vehicle inspection, making the process time-saving and hassle-free for you.

5. Legal Compliance

   It helps you stay compliant with the law by allowing you to renew your bike insurance policy on time.

Understanding Grace Period Regarding No Claim Bonus (NCB)

NCB is a bonus in the form of a discount offered by the insurer to their policyholder for not raising a single claim during their previous policy period. It is a discount that can go up to 50% for not raising claims for five consecutive years.

In case you are unable to renew your policy within the grace period, you end up losing your accumulated NCB. To safeguard this benefit, most insurers provide a grace period of 30 days, allowing you to retain your hard-earned NCB.

NOTE: The grace period varies between insurers and typically goes up to 90 days.

Ways to Avoid Lapses in Your Two-wheeler Insurance Policy

Keeping your bike insurance active is crucial for continuous coverage and legal compliance. Here are some effective ways to ensure your policy never lapses:

• Renew on Time: The simplest and most effective way to avoid a lapse is to renew your two-wheeler insurance before it expires. Set reminders or mark your calendar to stay ahead.
• Enable Renewal Alerts: Most insurers offer SMS and email alerts for policy renewal. Sign up for these notifications to get timely reminders about your renewal due date.
• Pay Attention to Insurer Calls: Insurance companies often call policyholders before the expiry date to remind them about renewal. Make sure you do not miss these calls.
• Opt for a Long-Term Policy: Instead of renewing annually, consider purchasing a long-term two-wheeler insurance policy with coverage for 3 to 5 years. This helps you avoid the hassle of yearly renewals and may also come with discounts on premiums.

How to Renew Your Two-wheeler Insurance Policy During Grace Period?

Listed below are the steps that you must follow for two-wheeler insurance renewal during the grace period:

• Step 1: If your policy has expired, find out the grace period offered by your insurer to renew without losing benefits.
• Step 2: Go to Policybazaar.com and select the 'Bike Insurance' option under the 'Insurance Products' menu.
• Step 3: Enter your two-wheeler number to view the available 2-wheeler insurance plans.
• Step 4: Review and compare different policies from various insurers to choose the one that best suits your needs.
• Step 5: Enter the necessary details, including owner information, vehicle details, and nominee information.
• Step 6: Pay the bike insurance premium using UPI, net banking, debit, or credit card, and your policy will be renewed upon successful payment.

NOTE: If you prefer to renew it offline, you will have to visit your insurer's office, and your vehicle has to go through an inspection process before the policy issuance.

Over to You!

To ride your bike legally in India, you cannot escape from renewing your two-wheeler insurance policy. Not only this, but you must also adhere to all the traffic rules and follow safety measures while riding your bike. Also, make sure you go through the policy wording carefully to know the exact policy expiry date, grace period, coverage, and more.