What Are the Consequences of a Lapsed Two-Wheeler Insurance Policy?

Any person who drives a bike will know that they need to have an insurance policy for bikes. If you are driving your bike without insurance, you must face dire situations. However, it is not only enough to have an insurance policy; you also need to ensure that your policy is always up to date. If you have expired bike insurance, you will still have to face a lot of trouble. 

You may feel that this law is unfair and that everyone sometimes forgets certain things. However, the implications of an expired two-wheeler insurance policy are very different from other things. If you don’t renew your bike insurance, it could call for a lot of trouble. If you have an accident and your insurance lapsed, it would mean you have everything out of your pocket. It would also mean that you will need to cover any third-party charges because of harm caused by you. Therefore, not having valid insurance will have several legal and financial implications. Keeping this in mind, let us see what happens if you have expired two-wheeler insurance. 

Two-wheeler Insurance Expired? – Renew it in Time

Wondering what could happen if you do not renew your 2-wheeler insurance online in time? Several consequences will be if you do not get your online bike insurance before your policy expires. 

The major consequences of not renewing your insurance policy for your bike online are given below. 

  • Loss of NCB

You receive the benefits of NCB, savings for not filing a claim, and a reward for driving safely when you don’t make a claim during the first year. You will forfeit the discount if you wait 90 days after the expiration date to renew or get bike insurance. When you spend five years without filing a claim, the discount increases to 50%. Additionally, you can keep the NCB for bike insurance and benefit from the discount even if you shift the insurance policy for the bike to a different provider. However, if the insurance coverage has already lapsed, you cannot transfer it.

  • Loss of Time

It takes time to renew two-wheeler insurance that has expired. You might have to start the full purchase process for the insurance policy for the bike online again. Before the firm offers you insurance coverage, you might need to have your bike evaluated by the surveyor. 

  • Liabilities

Expired two-wheeler insurance renewal is necessary. When your insurance plan covers you, the insurance provider will pay for any losses incurred, including vehicle repairs or medical expenses resulting from an accident. If your two-wheeler insurance has expired, you must legally pay for everything out of your pocket. 

  • Legalities

As we have already discussed, if a person does not have valid insurance when driving and is caught, they could face a lot of trouble. Therefore, the Road Authority of India has made the rules for not having or having expired insurance even stricter than before. If caught without or with lapsed insurance, a person would have to pay a fine of ₹2000 on the first occurrence and then ₹4000 after that. Furthermore, if a person is repeatedly caught without insurance, they could also be imprisoned for up to 3 months. 

  • Security

With two-wheeler insurance, you possess a safety net for your finances in the event of several unfavourable circumstances involving the bike, such as collisions, bike robbery, damage from a natural disaster, etc. However, you revoke this sense of security by failing to renew your 2-wheeler insurance online.

Renewing your expired bike insurance is a straightforward process. Visit the website of any renowned insurance provider in India, e.g., Tata AIG. Navigate to the Buy/Renew section, enter your bike’s registration number, phone number, etc. Select the IDV, the necessary add-on covers, and that’s all. Your expired insurance will be renewed. You can also contact the insurance company’s customer support and ask for assistance. 

Summing Up

Now that you know the consequences of letting your bike insurance, you should be more careful about letting it lapse. Try to renew your policy at least two weeks before your policy is supposed to expire to get the best deals. And when looking at deals, do not forget to use a bike insurance calculator to get the best plan for you.