A Lot of times, we are not able to renew our bike insurance policy on time.
Grace period is a wonderful feature provided by the insurance company for people who have missed the opportunity to renew their two-wheeler insurance online within its active period.
In this article we will discuss more about the Grace period in bike insurance.
Table of Contents
Understanding What is Two-Wheeler Insurance Grace Period?
Once your bike insurance policy expires, you lose the coverage provided for your two-wheeler. In India, as per the Motor Act, It is legally mandatory to have at least a valid third-party bike insurance. Thus you cannot risk losing bike insurance coverage.
The grace period is the extended time you get to renew your bike insurance policy after it expires. Insurance companies understand that there might be certain unavoidable situations (like medical crises, financial crises, etc) that might lead you to miss your premium payments.
The grace period feature is made available for these situations. Within the grace period, you can pay the missed premium amount and renew your bike insurance policy without losing coverage.
Also, while your policy is active, you may accumulate certain benefits like no claim bonus. If you renew your policy within the grace period you get to retain these benefits. The grace period can last up to 90 days depending on your insurer. This gives you enough time to renew your bike insurance policy.
Benefits of Grace Period in Two-Wheeler Insurance Policy
No Inspection:
One of the advantages that come with renewing the policy within the bike insurance grace period is that you do not have to go through the inspection process again. This also saves the policyholder a significant amount of money as the inspection process increases the premium costs.
Low Risk of Losing NCB Benefits:
NCB is a discount that is offered by insurance companies in the case that no claims have been filed during the insurance period. This discount can go up to 50%. Once your bike insurance policy expires, you lose the benefits of no claim bonus. With a grace period for two-wheeler insurance, you can renew your insurance policy without losing NCB benefits.
Hassle-free Renewal Process:
The two wheeler insurance grace period gives more than the required time to renew the bike insurance policy. This results in a stress free renewal process.
Fines and Punishments:
It is legally mandatory to have at least a third-party bike insurance when you own a two-wheeler. This means, without valid bike insurance you can end up in jail or you have to pay a fine. The grace period allows you the time to renew your bike insurance policy.
Things to Keep in Mind about Bike Insurance Grace Period
Amend your Policy Coverage:
With the benefit of a grace period for two-wheeler insurance, you also get the chance to make changes to your bike insurance policy. Make sure you research and explore all the changes you can make to your insurance premium before you modify it during the renewal process.
Avoid Lapses in your Bike Insurance Policy Renewal:
- The most significant way to avoid this situation is to renew your bike insurance policy on time or even before it expires.
- In today’s digital world, it has become quite easy to get alert services from your insurance companies about renewals.
- You can also avoid this situation by getting long-term insurance policy coverage to avoid the hassle of renewing your policy annually.
Make Sure you Know the Duration of the Grace Period :
The duration of the grace period for two wheeler insurance might differ depending on the insurance companies, leading insurers like Tata AIG offer a grace period of 90 days, which gives you ample time to renew your policy. However, this might differ for different insurers. Thus it is important to know the details of the grace period to avoid the risk of renewing your bike insurance policy on time.
How to Buy Bike Policy Online During the Grace Period After it has Expired
Let’s have a look at the steps to take to renew or buy bike insurance online during the grace period:
- Visit your insurance company’s website.
- Fill in your bike registration number.
- Click on the option to renew your expired bike insurance policy.
- Enter the details of any previous claims and the expiration date of the previous policy.
- If applicable select the No Claim Bonus(NCB) and Insured Declared Value (IDV)
- 6 Make changes to your policy coverage and choose between different add-ons.
- Once you follow all these steps you will get a quote for your insurance premium.
- Finally make the online payment and your policy will be renewed.
Note: The steps might differ depending on the insurance company.
To Wrap it Up
By considering the aspects of bike insurance policy like legal requirements and financial responsibilities, we can understand why it is important to renew your bike policy insurance on time. Although the Grace Period for two-wheeler insurance offers you time to renew your policy, it is better to renew your insurance policy before it expires.
