Consequences of delayed renewal and lapsed two-wheeler insurance

insurance policy

Consequences of delayed renewal and lapsed two-wheeler insurance  05th Sept 2022


An active insurance policy for two-wheelers protects you against damages caused by an accident, theft, and damage to a third party's vehicle or property. An active insurance policy is a must because two-wheelers are more prone to accidents than four-wheelers.
Also, an active insurance policy is compulsory under the law. As per the new Motor Vehicle Act, 2019, the fine for riding a two-wheeler without a valid insurance policy is a hefty Rs. 2000 and/or imprisonment up to 3 months.

If caught without a valid insurance policy for the second time, you may have to pay a fine of Rs. 4000! Hence, if your two-wheeler insurance has lapsed, immediately renew it, not just to be safe from being penalised but to have secure financial coverage for your two-wheeler. You can now easily renew two wheeler insurance online India with a few clicks and hassle-free payment.

Let us go through the consequences of delayed renewal and a lapsed two wheeler insurance policy in India.

1. Loss of cover:
The insurance cover ceases to exist from day one of the non-payment of the insurance premium for the renewal of the policy. This means that you should always renew your policy a few days in advance and never wait for the policy to expire first and then renew it. The insurance company will not cover any of the damages due to accidents or theft of the vehicle after the expiry of the policy. It will also not cover any third-party liability arising from an accident caused by you.

2. Delayed renewal:
There may be certain situations when you cannot renew your insurance policy in time. You may be ill, out of city or country, or forget the renewal date. To deal with such situations, a two-wheeler insurance policy provides a grace period of 90 days after the policy's end date. You can renew your policy within these 90 days, and the insurance company will create the policy as a "break-in". Such a renewal is termed a delayed renewal.
The delayed renewal allows you to claim certain benefits, such as your NCB. The "No claim bonus" accumulates yearly if you do not make any insurance claim. It is a sort of discount that you can enjoy in the insurance premium at the time of renewal of the policy. Over a few years, the accumulated NCB can help you save around 50% of the insurance premium.

3. Lapsed policy:
A policy cannot be renewed after the lapse of 90 days grace period that the insurance company provides. You will lose any unique benefits from your previous policy, such as the accumulated No Claim Bonus. The renewal premium will also be higher than what you pay in an existing policy. Moreover, you will have to get a fresh inspection done for your vehicle by the authorised person from the insurance company. You may have to bear the inspection costs as well.

Any insurance company will stop the protection cover immediately after your two-wheeler insurance policy expires. Unfortunately, if you meet with an accident even on the next day after your policy expires, the company will not compensate you for any claim.

Therefore, the best way to deal with such a situation is to renew your insurance cover in time. Renewing a policy has become quick nowadays with the emergence of two wheeler insurance online India. You need to keep your old insurance papers handy, visit the insurance company's website, go to the renewal section, make the required payment, and Bingo! Your renewal is done!

Click HERE to buy the best two wheeler insurance online India.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.