Understanding Grace Period in Two-wheeler Insurance Renewal

by SMCIB on Sunday, 11 June 2023

Understanding Grace Period in Two-wheeler Insurance Renewal

Services like electricity, gas, internet, etc. play a vital role in making your daily life smooth and convenient. However, if you forget to pay their bills on time, these services come to a halt, which can cause some major disruptions to your lifestyle. Therefore, it is very important to renew these services timely.

In a similar vein, if you own a bike, you need to purchase a two-wheeler insurance policy to take it out on the road. The insurance policy provides a safety net, shielding you from the financial burdens that arise from unfortunate events. Not to mention the fact that it is legally mandated as well.

To maintain this insurance coverage, you need to renew your policy, generally on a yearly basis. For this, you need to pay the required premium. This ensures that your financial shield is in place and that you are following all legal requirements too.

But, what happens if you miss out on renewing your two-wheeler policy by its due date? Does your coverage end? Can you reinstate it? This is where the concept of a grace period comes in. In this article, we will explore the grace period and how it functions in the case of two-wheeler insurance policy renewal.


Let’s First Understand What A Grace Period Is

A grace period can be defined as the extra time provided to you to continue your coverage after the expiration of your insurance policy. You can reinstate your insurance coverage during the grace period without any additional fines or premium hikes.


Grace Period In Two-Wheeler Insurance Policy

When it comes to two-wheeler insurance, there is no grace period. This means you don’t get extra time to keep your coverage intact. So, once the policy term expires, your insurance coverage is completely lost.

However, you have the opportunity to renew your policy while retaining the accumulated no-claim bonus (NCB) and without undergoing the entire inspection process again.

?Grace Period For Renewal Without Inspection
Some insurers may offer a grace period for online two-wheeler insurance renewals without increasing premium rates. This means that they might overlook a gap of a few days after the expiry date of your policy and allow you to renew it online without inspecting the bike. However, if there is a substantial gap in renewing the two-wheeler insurance policy after its expiry, insurers may require a bike inspection before renewing your policy. Please note that an inspection can potentially increase the bike insurance premium.

?90-Days Grace Period For No Claim Bonus
A No Claim Bonus (NCB) is a valuable discount offered by insurance companies as a reward for not filing any claims in a policy year. The NCB percentage typically ranges from 20% to 50%, with 50% being the maximum NCB offered.

Every year you go without making a claim, your policy accrues an NCB. However, if you fail to renew your two-wheeler policy within 90 days after the expiry date, your accumulated NCB will lapse. This implies that if you renew your policy within this 90-day period, you will be able to retain your accumulated NCB.


Important Points To Note!

As mentioned above, your two-wheeler insurance coverage will end if the policy is not renewed on time. So, here are some things to be mindful of  -

1️⃣ Don’t depend on the grace period
To ensure a smooth insurance experience, avoid relying on the 'grace period' altogether and renew your policy before it expires. Taking prompt action will help you maintain uninterrupted coverage.

2️⃣ Set reminders to avoid missing the expiry date
The best way you can make timely renewals is by setting a reminder approximately 10-15 days before your policy's expiry date. This will help you in various ways - it will offer ample time to compare different policies online, review your existing policy, and make necessary modifications if required. This way, you can make a well-informed decision of either renewing your policy or purchasing a new one.



A grace period is an extended time insurance companies offer to renew your policy after its expiration. However, when it comes to two-wheelers, you lose out on your insurance coverage if you don’t renew the policy before it expires. It’s a good practice to not depend on grace periods. Always renew your insurance policy before its expiration date to continue enjoying the coverage without any interruption.

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