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 from the comfort of your home by simply entering a few details on the insurance company's website and paying the renewal premium through electronic means.
However, many two-wheeler owners end up making a few mistakes while renewing their bike insurance policy. These mistakes may result losing benefits or claim-related disputes. Listed below are some such errors which you can easily avoid:
1. 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 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.
2. 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.
3. 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.
4. 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.