It is a known fact that bike insurance is a legal requirement for all bike owners. You must have valid insurance every time you take your bike on the road. But what happens if your bike insurance expires, and you fail to renew it. Read on to know more.
With the various changes introduced in the Motor Vehicles Act in 2019, all bike owners need to know about it. And one of the most important things to know about the new changes is the legal implications regarding the renewal of the policy. No matter, if you have a third-party only bike insurance policy or a comprehensive cover, all policies come with an expiry date. You must be aware of this date and ensure that you renew the policy on or before maturity.
As a bike owner, you would know that, as per the law, you must have a valid bike insurance policy always. The only time you need not have an insurance policy is when you stop riding your bike. As per a recent study in India, nearly 75% of the two-wheelers plying on Indian roads do not have valid insurance or the insurance is lapsed.
If you ride your bike for the everyday commute, you would understand the various risks associated with it, and hence you must get protection against it with insurance. If you have failed to renew the policy, you must renew bike insurance online immediately to avoid any financial loss that may arise due to unforeseen circumstances.
Here are four repercussions you may face if you don’t renew your bike insurance policy on time:
- Penalty
If you are caught driving without valid insurance, you may have to pay a hefty fine or face imprisonment up to three months. The Motor Vehicles Act enforces the penalty.
- NCB becomes void
When you don’t file for a claim during a policy year, the insurance company reward you with a No Claim Bonus (NCB) in the form of discount in the premium or increasing the sum insured. The bonus keeps on accumulating for each year of no claim. But you can claim the NCB benefits only if your policy is valid. If you fail to renew the policy within a specific time limit, you face the risk of losing all your accumulated NCB.
- Legal liabilities
A bike insurance policy provides you coverage against all types of risks including damage caused to the third-party’s vehicle, damages suffered by your bike due to natural calamity or loss of your bike. If you have valid insurance, the insurer is liable to pay for the repair works and compensate for the loss. But, if your policy has lapsed and you fail to renew it, you would have to face the entire cost of repairs from your pocket.
- Tedious process
If you fail to renew your lapsed policy within a prescribed time limit, you may have to go through a time-consuming activation process. Also, you may have to pay a higher premium to renew your lapsed policy.
Thus, failure to renew your policy on time may cause you to go through several hassles. To avoid this situation, it is better to take note of the renewal date and renew it on time.