All you need to do after your two-wheeler insurance policy has lapsed
With the penetration of technology in our daily lives and so many things to do at once, we have become busier than ever before. The brain is working overtime with the overload of information, giving rise to forgetfulness and absent-mindedness. In these times, it is easy to forget things which are as simple as ‘paying your two-wheeler insurance premium’.
What Happens When You Forget to Pay Your Premium?
When you forget to pay your premium by the due date, the policy lapses. The insurer however, does give a grace period (usually a month or so), which varies according to the company. During this period, you are expected to catch up with your payment schedule and renew your policy to continue enjoying its benefits.
What Happens If You Still Do not Make the Payment?
The same thing that happens when you don’t pay your other bills, takes place with a lapsed payment of your policy. Initially, a late fee is charged and your premiums from the next cycle will be higher. When your policy lapses, all the benefits that you were enjoying are no longer available.
Therefore, if an accident occurs during this period, you are as good as not insured and must bear all the expenses yourself. Prolong the payment long enough and it will either significantly influence your No Claim Bonus (NCB) or you may have to forfeit it altogether. Additionally, you will also have to bear the cost of any accident that leads to third-party liability.
How to Renew Your Lapsed Insurance Policy
So, you’ve finally decided to renew your insurance policy. This can be done in two ways: online or offline. Online is the easiest way to go. All you must do is log on to your insurer’s website, enter your policy details, make the payment and you are done. In most cases, even the physical inspection of the vehicle does not take place and the soft copy of the documents is sent on email.
The second, more tedious way to renew your lapsed insurance is by going offline. Also referred to as the traditional method, it requires you to visit the insurer’s branch along with the documents, after which the renewal process will be initiated. It differs from online in the fact that renewal takes place only after the company representative has inspected the vehicle.
How to Avoid This from Happening Again
The best advice would be to not skip on your premium payment. You can keep a track of your due date by signing up for email/SMS alert service, which many insurers provide. Another smart way to avoid it is to opt for a long-term policy. Some insurers allow you to avail two wheeler policies with long-term option of up to 3 years. This not only saves you from the hassles of yearly renewal and the fear of getting your policy lapsed but also offers exciting benefits on premiums for a no claim year.
Related Article:
75% Two Wheelers in India are Uninsured. Is Yours One of Them?
Why Choose a Long-Term Two Wheeler Insurance Policy?