The Insurance Regulatory Development Authority of India (IRDAI) recently revealed that about 75% of two-wheelers on road are not insured, despite being made mandatory by law.
The Insurance Regulatory Development Authority of India (IRDAI) recently revealed that about 75% of two-wheelers on road are not insured, despite being made mandatory by law. While it is an obligation for new owners to buy the policy, it’s the old users who tend to ignore or delay renewing their policy. A policy lapses when you do not pay the premium on time, and consequently, all rights and benefits become limited.
What happens when you fail to renew your two-wheeler policy?
Your No Claims Bonus (Or NCB) will be forfeited if the policy is allowed to lapse for more than 90 days. This may result in higher premium in the next cycle. In addition to this, you will be exposed to risks arising out of an accident and related third party liabilities. Your best bet in this scenario, would be to renew your policy on-time.
How can you renew your policy?
There are two ways through which you can reinstate your lapsed policy: online and offline. Renewing your policy online is quick and simple process. All you have to do is log in to your insurer’s website and fill in the required details, including vehicle registration number, policy details and information pertaining to any add-on cover that you may have opted for. Your policy will be renewed at the completion of this procedure and documents will be sent to you via e-mail. Typically, online renewal of policy does not require physical inspection of the vehicle.
You may choose to renew your policy offline by reaching out to your insurer and getting your ride surveyed. You would then be asked to produce policy documents and claims related papers. You will be awarded with the policy and NCB accordingly.
IRDAI introduced long-term insurance for two-wheelers for 3 yrs term. If you opt for such policy, you can avoid annual hike as the premium that you would pay will be equal to the annual premium applicable in the current year.
How can you reinstate your lapsed motor insurance policy?
Some of the insurers offer a facility that allows you to renew the policy after 90 days of break-in period. Unlike conventional processes wherein the insurer prompts you to undergo vehicle inspection before renewing the policy, online renewal of break in policies allows consumers to revive their policy without any inspection and minimal documentation. However, be wary of the fact that the risk inception date commences 3 days from the day of policy purchase and any damages to the vehicle before this period will not be covered by the insurer.
Renewing your two-wheeler is mandatory and not an option. Today, insurers offer hassle-free and instant online renewal process with just a click of a button as against the conventional mode. With the repercussions inclining towards legal and financial hassles, are you prepared to face them anytime, anywhere, and bear the burden, is a question you may want to ask yourself!
The author is CEO & co-founder, Policybazaar.com