Motor Insurance

Importance of Renewal of Two-Wheeler Insurance Policy on Time

by SMCIB on Sunday, 11 June 2023

Importance of Renewal of Two-Wheeler Insurance Policy on Time

Renewal is a process that can help you keep resources up to date and ensure continued access. Today, everything from electricity to broadband, needs to be renewed on a regular basis to keep the service intact. It's like getting an oil change for your car - if you don't keep up with regular maintenance and repairs, your car won't be able to run smoothly.

Similarly, if you have two-wheeler insurance, you need to renew it on time. You buy motor insurance to protect yourself from accidents or losses or damages. However, if you fail to renew the policy on time, your policy can lapse and you won’t be able to access the coverage when you need it most. Non-renewal may lead to several other consequences as well. Let's discuss them in this article.

 

Why Is It Important To Renew Your Two-Wheeler Insurance On Time?

Timely renewal of two-wheeler insurance is crucial to -

1️⃣ Avoid Financial Constraints

A two-wheeler insurance policy is primarily intended to provide you with financial protection against any accident, damage, or loss. However, if an accident occurs while your policy is expired, you will not be covered for any damages caused to your vehicle or a third party. You will have to bear the expenses. Therefore, it is essential to never let your two-wheeler insurance policy lapse, as it can leave you unprotected and vulnerable to costly damages.

2️⃣ Prevent Any Legal Complications

In India, having at least a third-party policy is mandatory, and if you are caught driving without one, you will face legal consequences. You may have to pay a fine, face imprisonment, or even both. To ensure that you are always on the right side of the law, renew your two-wheeler insurance policy on time.

3️⃣ Keep Your No Claim Bonus Intact

The No Claim Bonus (NCB) is an added incentive to encourage policyholders to be responsible drivers. It is a discount you receive from your insurance company if you don't make any claims in a policy year. So, the longer you go without a claim, the higher the discount you can receive. However, you will lose your No Claim Bonus if you make a claim during a policy year or if your policy is not renewed within 90 days of expiration. Therefore, it is important to actively monitor your policy and make sure it remains active to keep any accrued No Claim Bonus intact.

4️⃣ Avoid Inspection

If you delay the renewal, some insurance companies may require an inspection of your two-wheeler before providing coverage. In case they send an agent to inspect your vehicle, they might also charge you for the service. Therefore, it is best to renew your two-wheeler insurance on time to avoid any out-of-pocket expenses.

5️⃣ Ensure Continuous Coverage
A break in your insurance coverage may result in higher premiums or difficulties in renewing your policy. So, keep your two-wheeler insurance policy up to date to ensure that your coverage remains uninterrupted. This will help you to stay protected against unforeseen expenses arising out of accidents, theft, natural disasters, etc. You'll also enjoy the peace of mind that comes with knowing that you are adequately protected.

 

Wrapping up!

We've reached the end. To ensure your financial security, renewing your two-wheeler insurance is vital. Now that you are aware of the consequences of non-renewal, we hope you stay on top of your policy and reap its benefits. So, don't delay, renew your policy today - to ensure your safety on the road!

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