Two-wheelers are one of the most popular modes of transport in India due to their affordability, ease of use, and ability to navigate through congested traffic. However, owning a two-wheeler also comes with responsibilities, including keeping your 2 wheeler insurance up to date.
Failing to renew your 2 wheeler insurance can have serious financial, legal, and personal consequences. At Digibima, we help you understand why renewing your 2 wheeler insurance is crucial and what can happen if you let it lapse.
The Importance of 2 Wheeler Insurance
Legal Requirement
In India, having at least third-party liability insurance for your two-wheeler is mandatory under the Motor Vehicles Act. This law ensures that if your vehicle causes harm to someone or damages their property, the insurance will cover those costs. Without this, you are legally liable for all damages, and driving without valid insurance is considered illegal.
Financial Protection
Accidents can happen anytime, and repair costs can be high, even for minor damages. Comprehensive 2 wheeler insurance covers not just third-party liability but also the damage to your vehicle due to accidents, theft, natural disasters, and more. Without insurance, you bear the entire financial burden.
Peace of Mind
Having valid insurance ensures peace of mind knowing that you are financially protected. Whether it’s a small scratch or a major accident, your insurance company will help cover the expenses, leaving you less stressed about unexpected events.
What Happens When You Don’t Renew Your 2 Wheeler Insurance?
If you forget or decide not to renew your 2 wheeler insurance, several consequences can affect you financially, legally, and personally. Here’s what can happen:
1. Legal Consequences
One of the most immediate risks of not renewing your 2 wheeler insurance is that it’s illegal to ride a two-wheeler on Indian roads without insurance. If caught by traffic authorities, you could face:
- Fines: You can be fined up to ₹2,000 for a first offense and ₹4,000 for subsequent offenses.
- License Suspension: Repeated offenses may lead to the suspension of your driving license.
- Imprisonment: In extreme cases, there is a possibility of imprisonment for up to three months.
2. Financial Burden from Accidents
If your insurance lapses and you’re involved in an accident, you’ll be responsible for covering all the costs associated with damages. This includes:
- Repairs to your vehicle: Without insurance, repair costs must come out of your pocket, which could be expensive, depending on the damage.
- Third-party liabilities: If you cause an accident that injures someone or damages their vehicle or property, you must pay for their medical expenses or repairs, which can be financially crippling.
Example:
Ravi, a commuter from Pune, missed renewing his two wheeler insurance. While riding one day, he collided with another motorbike, causing damage to both vehicles and minor injuries to the other rider. Because his insurance had expired, Ravi had to pay ₹10,000 out of pocket for the other rider’s medical bills and ₹15,000 for vehicle repairs—costs that would have been covered if his insurance had been active.
3. Loss of No Claim Bonus (NCB)
One of the significant benefits of maintaining continuous insurance coverage is the No Claim Bonus (NCB). If you haven’t filed any claims in a policy year, you earn an NCB, which provides discounts on the premium when you renew your insurance.
If your insurance lapses, you lose this accumulated NCB, and when you eventually renew your policy, you will have to pay the full premium amount. This could mean losing up to 50% in premium savings over time.
4. Ineligibility for Claims
Once your 2 wheeler insurance lapses, you cannot make any claims for damages, theft, or third-party liabilities, even if an accident happens just one day after your policy expires. Any incident that occurs during the period without insurance will be solely your responsibility to resolve.
Example:
Sonal from Delhi had her bike stolen just a few days after her insurance expired. Since she had not renewed her insurance in time, the insurance company could not help cover her loss. This forced her to bear the full cost of replacing her bike.
5. Inspection and Higher Premiums When Renewing
When you don’t renew your insurance on time, and there’s a significant gap, insurance companies may require your two-wheeler to undergo an inspection before reinstating coverage. This could lead to a higher premium based on the condition of the bike.
Moreover, allowing your 2 wheeler insurance to lapse means you may lose access to the discounts or benefits you had under your previous policy. The cost of renewing a lapsed policy is often higher than a regular renewal.
6. Limited Coverage for New Damages
If your insurance expires and your vehicle gets damaged during the lapsed period, those damages won’t be covered when you renew the policy. The insurance will only cover damages or accidents that occur after the new policy is active.
How to Avoid the Consequences of Lapsed Insurance
Set Up Reminders
Make a note of your insurance renewal date and set up alerts on your phone or calendar to remind you to renew the policy before it expires.
Opt for Long-Term Insurance
Many insurers offer long-term two wheeler insurance policies that cover 2-3 years at once. This reduces the hassle of renewing your insurance annually and ensures continuous coverage.
Use Auto-Renewal Options
Some insurance companies offer automatic renewal options, allowing you to automatically renew your policy without the need to manually track the date.
Renew on Time with Digibima
As an insurance aggregator, Digibima makes it easy to compare various 2 wheeler insurance policies and renew your policy online quickly. You can review different plans, pick the one that suits your needs, and ensure that your two-wheeler remains covered without any gaps.
Conclusion
Renewing your 2 wheeler insurance on time is essential to avoid legal issues, financial burdens, and the loss of valuable benefits like the No Claim Bonus. Don’t wait for an accident or other misfortune to remind you of the importance of insurance. With platforms like Digibima, renewing your insurance is quick, easy, and hassle-free, ensuring that your two-wheeler stays protected on the road.
The Importance of Renewing Your Bike Insurance Online: A Complete Guide
FAQ Section
Q1: What happens if I don’t renew my 2 wheeler insurance on time?
A1: If you don’t renew your two-wheeler insurance, you risk facing legal penalties, losing financial protection, and having to bear the costs of any accidents or damages. You’ll also lose any accumulated No Claim Bonus (NCB).
Q2: How long after my policy expires can I renew my insurance?
A2: Most insurers provide a grace period of 30 days to renew your insurance. However, during this period, you are not covered. After this grace period, you may need to undergo vehicle inspection, and premiums could increase.
Q3: Can I file a claim if my insurance has expired?
A3: No, once your two-wheeler insurance has expired, you cannot file any claims for incidents occurring during the lapsed period.
Q4: What is the No Claim Bonus (NCB), and how do I lose it?
A4: NCB is a discount given for not filing claims during a policy year. If you fail to renew your insurance on time, you lose the accumulated NCB and must start over when you renew.
Q5: How can Digibima help with my 2 wheeler insurance renewal?
A5: Digibima is an insurance aggregator in India that helps you compare and renew your two-wheeler insurance quickly and easily online, ensuring you get the best deal and maintain continuous coverage.
