Everything to Know About A Lapsed Bike Insurance Policy
With the busy schedules that people have today, they need to get to places quickly and cannot afford to waste a single minute from their day and end up purchasing a two-wheeler, because it makes travelling convenient. The problem lies when people stop just there and forget to protect the vehicle with an insurance policy. While there are the others who have an insurance policy but fail to renew it, which leads to policy lapse.
More on Policy Lapse
Paying the premium amount is necessary, and if you don’t do so, the policy lapses. Most of the insurance providers do provide you with a grace period of 30 days, which is offered to you like a second chance to renew your bike insurance policy. If you wish to continue enjoying the benefits of your policy you can renew it during this time or let it expire.
This will happen if you don’t make the payment even after the grace period:
In case you don’t make the payment even after the grace period is over, you will be charged a specific amount of late fee, and the premium amount to be paid from the next cycle will be higher. Once your two-wheeler insurance policy expires, all the benefits that it provided you, won’t be available, and you will have to purchase bike insurance online all over again.
Keep in mind that if you happen to meet with an accident during the period when your policy has expired, you will be counted in as not insured, and will have to bear all the expenses yourself. More importantly, if you prolong the payment, you will be losing all the accumulated No Claim Bonus (NCB) completely. In case the accident causes any damage to the third-party, you will have to bear all the costs.
Process of Renewing Your Lapsed Insurance Policy
The process of bike insurance renewal can be done in two methods- offline and online. Talking about the offline method, which is also the traditional one, is still followed by a few people. You must visit the insurance company’s branch and carry all the required documents along. The renewal process will begin once the documents are approved and inspected by the company representative.
The second method is renewing your policy online, sitting in the comfort of your home. This way it is easier and more convenient, as you don’t have to visit any branch office. All you have to do is visit your preferred insurance company’s website and enter the policy details. Lastly, make the payment and that’s about it. In a few cases, even inspection is not necessary and you receive the soft copy of documents on email.
How to Avoid This from Happening Again
You can avoid this situation by not skipping on your premium payment. An easy way to keep a track of your expiry date would be to set a reminder on your phone. Even if you don’t follow this, most insurers provide you with a service wherein you can sign up for email or SMS alert, when your renewal date is nearing. Or to avoid it completely, you can go for a long-term policy that goes up to 3 years. By purchasing this, you save yourself the hassle of renewing your policy annually and dealing with a lapsed policy. Apart from this, do not forget to compare various policies online before purchasing. To get thevalue of the premium to be paid, you can make use of the two wheeler insurance premium calculator available online.