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Today, every vehicle needs to have an insurance in India as per the rules. The law says any vehicle insurance policy shall lapse if it is not renewed on time or before the due date. As soon as a policy gets lapsed, it becomes ineffectual as all of its benefits become void. The process of renewing insurance can be done online easily today rather than visiting the insurer’s office.
What happens if a two-wheeler vehicle insurance policy lapses?
In case a policy gets lapsed due to not paying the premium for the renewal of the policy initially a waiting period is given. In this period the plan can be reinstated before getting fully terminated. However, during this period no benefits of the plan can be availed.
As a policy gets lapsed, the coverage against the financial liabilities towards a third party, protection against damage and loss arising out of accident, theft or mishap all these become inactive. Once an insurance policy gets lapsed you need to bear all the expenses on your own. Additionally, driving without a legitimate insurance is illegal, for which you may get penalised.
Also, if a policy lapses the No Claim Bonus (NCB) benefit is lost as well.
NCB benefit can range from 20% to 50% of discount on the premium of the insurance policy and is lost if the plan is not renewed on time like even in the break-in period of ninety days as you cannot renew a lapsed policy after this particular period.
In case you do not renew your plan and your policy is terminated, you have to buy a fresh new policy again and go through the entire process of documentation and inspection of your vehicle, along with other formalities.
How to renew vehicle insurance policy?
There are two ways to renew a lapsed two-wheeler insurance plan i.e., online and offline.
Here are the following steps to renew your policy online;
Step 1: Visit the official website of your insurer
Step 2: Enter the required two-wheeler details like existing policy details, registration number of your bike and other data
Step 3: Make the payment for the renewal of the plan through available online payment methods
Step 4: Your two-wheeler insurance policy gets renewed and after the process gets completed, you will get the policy documents via email
But, if you want to renew your lapsed policy through offline mode, you will have to visit the branch of your insurance company with all the necessary documents. In this method, the executives may even ask for the inspection of your bike before issuing a new policy in addition to verification of your documents.
Keep in mind, if you choose renew your two-wheeler insurance online, then the inspection of your vehicle is not compulsory. The policy period starts after three days of receiving the online payment done to the insurer.
In other scenario, if you choose to renew your two-wheeler insurance offline, then inspection becomes obligatory and you will have to take your two-wheeler to the nearest office of your insurer along with the necessary documents for the process to be completed.
Generally, the below documents are asked for two-wheeler insurance renewal;
If the inspection of your vehicle is gets approved, then the insurer will issue the renewal within two working days.
Remember, if you renew your policy after ninety days of its expiry, then you will lose the NCB benefit. If you renew your insurance policy after one year or more, then your break-in case will be referred to the underwriter.
How to keep track of insurance renewal?
To keep track of your insurance renewal you need to ensure to avoid any lapse in your plan. If you register yourself with your insurer to keep track of the expiry date of the due date of your insurance plan through email or SMS alert service, you can renew your plan on time. On the other hand, you can also choose a long-term two-wheeler insurance policy with policy coverage of more than three years. Opting for a long-term two-wheeler insurance policy can protect you from the hassles of yearly renewals while providing a range of policy benefits.
If you have missed your two-wheeler insurance policy renewal date, you should immediately get in touch with your insurer. Your insurer will help renew your insurance policy without imposing any penalty on you, if it is only a few days past the due date. Moreover, in some cases insurance providers can avoid vehicle inspection as well especially in situations where you have been trying to pay for the insurance policy before it expired.
In summary it is important to renew your insurance policy on time. You should keep email or SMS alert service from your insurer to keep track of the renewal due date. Keeping everything related to insurance updated is important to make use for its benefits and get the required coverage in any unfortunate time.
FAQs – Frequently asked questions.
Q1: Do insurance companies charge a fee for renewal of policy?
No, insurance companies do not levy any additional charges while you renew expired two-wheeler insurance online.
Q2: Is there a penalty incurred when the two-wheeler is uninsured?
Yes, under Section 197 of the Motor Vehicle Act 1988 driving without an insurance policy attracts a fine or up to 3 months imprisonment, or in certain cases - both.
Q3: Is there a fine of riding without a two-wheeler insurance in India?
Yes, you can be penalized to up to Rs 1,000 for the first time and Rs 2,000 for a recurrent offence, if you are caught riding without a two-wheeler insurance policy in India.
Q4: Is there a maximum time I can get a long-term two-wheeler insurance policy for?
Yes, for a two-wheeler insurance policy, you get to buy a long-term plan for up to five years.