Why Should You Prioritise Two-Wheeler Insurance Renewal?
Buying a two-wheeler insurance plan is one of the first few things you need to do when you purchase a two-wheeler. The Motor Vehicles Act, 1988, amended in 2019, makes it mandatory to have insurance for your two-wheeler. While many reiterate the importance of buying two-wheeler insurance, you need to at least purchase third-party two-wheeler insurance policy for your bike.
Albeit buying bike insurance is mandatory, not many people tend to renew it on time. Here we have compiled the reasons why you should prioritise renewing your bike insurance policy –
#1 Secure coverage for your bike
Ensuring timely renewal of your bike insurance policy will not only keep you away from legal hassles, but also financial liabilities. In case of an accident, the legal liabilities can be avoided if you have a valid copy of vehicle insurance. Similarly, if your bike has suffered any damages, the cost of repairs can be recovered by your insurance plan. When you ensure a prompt bike insurance renewal, you save your hard-earned money in paying for third-party liabilities or the repairs.
#2 Negate the break in your policy
In case you have missed on renewing your bike insurance policy, you will require to purchase a fresh insurance plan. Moreover, if you fail to renew your comprehensive bike insurance for more than 30 days after the due date, any accrued no claim bonus is lost. This non-renewal of your policy within the due date is termed as break-in policy tenure. It can have the effect of losing your policy benefits that otherwise are available when continually renewed.
#3 Avoid legal complications
Failing to renew your policy in time can leave your vehicle uninsured. There are hefty penalties for riding your bike without a valid insurance certificate. If you renew your policy in time, it will help in safeguarding against any litigation and avoid fines and penalties.
#4 Continued NCB benefits
No claim bonus or NCB are the benefits that the insurance company offers to you, the policyholder, for not making any claim during the policy tenure. These benefits are in the form of concession in your premium at the time of renewal provided you renew it within 30 days after the policy renewal date. In other cases, if you miss this renewal date, no NCB benefits are allowed to be carried forward to the next policy tenure.
What is the effect of not renewing your policy within the due date?
As discussed earlier, not renewing your bike insurance policy on time will subject you to legal implications in case of an accident. Also, the traffic officials may levy a hefty penalty for not complying with primary documents that you must possess to ride a bike legally. Along with legal hassles, you become financially vulnerable for costs that you may be required to incur in case of accidents and damages to your vehicle. It can have a significant impact on your savings too.
Thus, it is prudent to insure and renew your policy on time. While renewing your policy, you have the choice to either continue with the same plan or explore comprehensive, third party bike insurance policies and compare bike insurance policies to upgrade to a better plan. To conclude, make the perfect choice to avoid legal complications and complete safety for your vehicle.