A bike insurance policy offers dual benefits of legal compliance along with financial protection for damages. These damages may either be payable to a third person or for the damages sustained to your bike. Hence, it is essential you ensure continued renewal of your two wheeler insurance policy. This article lists down some handy tips that can help you have a seamless bike insurance renewal process:
Decide the policy before its expiry: Renewal of your insurance cover gives you the option to change your policy or even upgrade if you wish to. A third party bike insurance is minimum requirement as per the Motor Vehicles Act, but you can opt for a comprehensive plan too. While the third-party plan covers legal liabilities payable to a third person in the event of an accident or collision, it offers no coverage for the damages sustained to your bike. Hence, a comprehensive plan provides a 360-degree cover when it comes to insuring against damages. It is essential you decide upon the type of insurance policy before the expiry of your current insurance plan. This gives you sufficient time to weigh the pros and cons of each and then come to terms of finalising one. Moreover, it is recommended you start this process at least 45 days in advance that helps you decide the type of policy and its coverage not at the eleventh hour.
Take advantage of the no-claim bonus: No-claim bonus or NCB is renewal benefit offered by the insurance company for times when no-claims are made during a policy tenure. This no-claim benefit is of cumulative nature and accrues over time thereby, offering a concession in form of reduced premiums at your two wheeler insurance renewal. Moreover, as time passes, the amount of such bonus increases starting at 20% going all the way up to 50% for consecutive claim-free policy years. You can visit the official website of IRDAI for further details.
Reassess the coverage: Insurance coverage must be periodically reassessed. This is required so that any shortcomings in your bike insurance coverage can be amended to make it right based on your requirements. This reconsideration may require you to either enhance the policy coverage or amend it to suit the needs at renewal.
Amendment or correction for any errors: There can be instances when you relocate to a new place that results in changes in your personal information. Also, any modifications to your bike may mean change in vehicle details. Such changes need to be reported to the insurer. Renewal of your policy is one such time to intimate your insurance company for these changes. In addition, any errors in your insurance coverage can also be amended at this time thereby ensuring the right information is available with your insurer.
Renewal of policy after expiry: It is better to avoid such a situation, but it may happen in case of missed timelines. If your policy has expired already, you can make use of the grace period to renew your policy without losing out on the renewal benefits. Comprehensive plans offer the no-claim bonus which remains valid for 90 days even after the expiry of your two wheeler insurance policy. Thus, ensure any delayed renewals are carried out within such duration to avail continued policy benefits. You can visit the official website of IRDAI for further details.
These are some of the considerations that can help you renew your policy smartly. When buying a policy, remember that insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.