As per the Motor Vehicles Act of 1988, all two-wheelers must have valid third-party insurance to ply on Indian roads. A standard bike insurance policy usually comes with a single-year tenure, after which vehicle owners have to renew the policy. If the policy is not renewed on time, the owner may face a fine of ₹2,000 and/or imprisonment of up to 3 months. For a repetitive violation, the bike owner may have to pay a fine of ₹4,000 along with imprisonment for the same term.
Digitisation has made bike insurance renewal easier by almost nullifying the paperwork requirements. You can now renew your bike insurance online from the comfort of your home. In this blog, we have mentioned the mistakes to avoid and things to remember while renewing your two-wheeler insurance to ensure that the process is as quick and hassle-free as it is meant to be.
Mistakes To Avoid When Renewing Your Bike Insurance
Two-wheeler owners make a few mistakes while renewing their bike insurance policy. These mistakes may result in losing benefits or claim-related disputes. Listed below are some such errors which you can easily avoid:
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Not claiming your NCB
The No Claim Bonus (NCB) is the insurance provider's reward to the policyholder for not raising a claim during the policy tenure. Often, customers forget to get this benefit at the time of renewal.
The NCB in bike insurance is essentially a discount, which you should claim without fail. It reduces the net premium amount that you have to pay for the renewal of your bike insurance policy. You can claim the NCB within 90 days after the policy expiry date. However, we always recommend renewing your bike insurance policy well before the expiry date to ensure optimum coverage.
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Overlooking the terms & conditions
Insurance providers might regularly modify their terms and conditions to abide by the regulatory changes and maintain business proficiency. You should not assume that the policy terms will remain constant. Read all terms and conditions carefully while renewing your bike insurance to know the policy exclusions and ensure it still covers your requirements
Knowledge of the terms and conditions will keep you aware of structural changes in your bike insurance policy. Hence, you will be able to make an informed decision regarding the switch to a new insurer. Most importantly, it will keep you informed of what you can rightfully expect as compensation when you make a claim.
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Not intimating the insurer about modifications
Some motorcycle enthusiasts love to customise their rides. If you also make certain modifications to your bike, you must provide the details of each modification to the insurance company at renewal. This will avoid any disputes in the event of a claim.
Many owners may think it is not a big deal if they do not provide the modification details. However, such negligence may render their cover ineffective and give the company a ground to reject or significantly reduce their claim amount.
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Providing incorrect details
The biggest mistake (which you can easily avoid!) is giving incorrect details while renewing your bike insurance policy. You should carefully type in the details, such as registration number, previous policy number, owner's name, etc., while applying for renewal of the policy.
The insurance cover may become invalid if the name of the vehicle owner is found to be incorrect. Hence, you should keep your bike's registration certificate and previous policy document handy while renewing the policy so that you don't miss out on the exact details.
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Not assessing the add-on requirements for your insurance coverage
Some owners wrongfully assume that add-ons on a bike insurance policy are only a way of increasing premiums without any benefit. Truth be told, add-on covers significantly enhance the coverage of your bike insurance policy. It can save you from huge expenses in the event of a mishap at the cost of a small premium increase.
Therefore, at the time of renewal, you should carefully assess what kind of add-ons you want to add or remove from your policy, depending on your bike's usage and condition. For example, if you plan to go on long rides, it would be wise to opt for the roadside assistance add-on to get help in case of an emergency.
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Stretching the renewal process to the eleventh hour
It would be best if you renew your bike insurance policy well before its expiry date. Going for the policy renewal at the last moment leaves no time for assessing your actual insurance needs and making policy changes. Under such a scenario, you might pay the premium in a hurry and end up with a cover that does not fully serve your bike insurance requirements.
You can also renew your policy after it has lapsed, but doing so may lead to a higher premium and a need for inspection. It also leaves your vehicle unprotected against risks.
Factors to Consider While Renewing Bike Insurance Policy
When renewing your two-wheeler insurance, consider the following key aspects:
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Insurance Type (Comprehensive vs Third-Party)
When renewing your bike insurance, consider upgrading to comprehensive coverage if you currently only have third-party insurance. This offers more extensive safety and peace of mind in case your bike is involved in an accident.
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No Claim Bonus (NCB)
No claim bonus for two-wheeler insurance is a discount offered by the insurer for a year when no claims were made. Ensure to get the NCB discount by renewing the policy within 90 days of the last tenure. If you fail to renew your bike insurance within this period, you may miss the NCB discount.
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Insured Declared Value (IDV)
The Insured Declared Value (IDV) is the maximum sum assured by the insurer in the event of a total loss or theft of the vehicle. The IDV is typically determined based on the bike’s age and model. Ensure that your IDV reflects the current market value of your bike and is not undervalued to avoid financial loss in case of an accident.
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Claim Settlement Ratio
Before renewing your policy, it's a good idea to check the insurer’s claim settlement ratio (CSR), which reflects the percentage of claims the insurance company has successfully settled. A higher CSR indicates the reliability of the insurance provider. You can change your insurer after checking the CSR to ensure smooth and hassle-free claims in the future.
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Add-Ons
Review the available add-ons and assess whether any additional coverage would benefit you. Roadside assistance, engine protection, and accessories cover can increase the range of benefits your policy provides and ensure that you're well-protected in various scenarios.
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Personal Accident Cover
While renewing your two-wheeler insurance, check if you have a personal accident cover and purchase the same to ensure legal compliance and financial protection in case of any casualty to the owner during an accident.
FAQs
Q1: How can I reduce the premium on my bike insurance?
You can reduce the premium on your bike insurance by opting for higher deductibles, maintaining a good claim history, installing anti-theft devices, or bundling your policy with other types of insurance.
Q2: Is it necessary to renew bike insurance every year?
Yes, it is mandatory to renew bike insurance annually as per Indian law. If you are caught without a valid policy, it may result in penalties and other legal consequences.
Q3: Can I renew my bike insurance online?
Yes, most insurers offer online renewal services. It is a quick and convenient way to renew your bike insurance without having to visit the insurer’s office.
Q4: What happens if I do not renew my bike insurance on time?
If you do not renew your bike insurance on time, your coverage will lapse, leaving you financially exposed in case of an accident or damage. Additionally, you may incur a penalty or face difficulty obtaining coverage if your policy lapses for a long period.
Conclusion
The process of renewing your two-wheeler insurance can seem tricky, and mistakes made in the process can result in legal penalties and can delay the claim process. While renewing your bike insurance policy, do your homework and provide all information correctly.
You can buy or renew your motor insurance policy at affordable rates from ICICI Lombard.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.