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How Your Bike Insurance History Matters At the Time of Renewal?


As per The Motor Vehicles Act, 1988, bike insurance policy is a mandatory requirement for riding your bike in India. If you are caught riding your bike without a valid insurance cover, you would be fined heavily. Every bike insurance policy has a fixed term. As the term comes to an end, you have to renew two wheeler insurance to enjoy a continued coverage. If the policy is not renewed on time, it lapses and the cover expires. Since the coverage is mandatory, bike insurance renewal becomes mandatory.


Renewal of the policy is easy as you can renew two wheeler insurance online as well. You just have to enter the details of your bike and pay the renewal premium. Since the renewal of your bike insurance plan is necessary, you should understand how your bike insurance history matters at the time of renewal and also the things which you should consider when you renew your bike insurance plan. At the time of bike insurance renewal, your bike insurance history is given a lot of importance because of the following reasons.


  • Your claim history affects the no claim discount

The bike insurance policy provider offers a discount at the time of renewal if there has been no claim against the policy in the previous year. This discount increases with every claim-free year. So, if you have not made any claim under the insurance policy for five consecutive years, you can earn a no claim bonus of up to 50%. This discount reduces your premium.


  • Expiry of no claim bonus

If the policy is not renewed within 90 days after the expiry date, you will lose the accumulated (if any) no claim discount of the policy. So, remember to renew the policy at the earliest to retain your no claim bonus.


  • Inspection depends on the renewal date

Ideally, the policy should be renewed well before the expiry date. If the expiry date passes and the renewal are not done, the insurance company might feel the need to inspect the vehicle. This can increase your premium and cause a delay in the bike insurance policy process.


  • The IDV matters too

The Insured Declared Value of the bike usually reduces at every renewal. Therefore, the IDV history of the bike also matters when you are renewing your policy. Choose the appropriate IDV while renewing insurance.


You should also review the existing insurance cover of your bike insurance policy. If you have bought a third-party plan and want to switch to a comprehensive cover, you can do so at the time of renewal. Moreover, you can also choose add-ons to customize your coverage when you renew your plan.


  • Comparison

When renewing, it is not necessary for you to stick with one insurance company. You should compare the available policies and then choose a policy which offers good coverage at low premium rates.


  • Renewing before time

It is always advised to renew your policy well within the due date. The cover starts only after the existing policy expires but you get continued coverage without a break. Otherwise, you will have to go for a break-in policy, which might need inspection.


  • The grace period

Most bike insurance policies allow a grace period after the expiry of the due date. Though coverage is not active during the grace period, you can retain your renewal benefits if you renew your policy during this period. So, always try and renew the plan within the grace period if you miss the expiry date.

Source: Techstory

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