Not renewed your two-wheeler insurance policy yet? Guess you are not aware about the benefits of a two-wheeler insurance policy renewal. Read on to know more.
Two wheelers are the most widely used vehicles all around the world. Developing countries like India have seen a majorrise in the manufacturing of these vehicles. They are more convenient, budget-friendly and provide the most effortless way of travelling.
Not only they save time but are also fuel efficient. In a country like India, where most of the Indians come from the socio-economic class,scooters and bike come across as a blessing in disguise. Also, it is crucial to have a bike insurance policy as per law. In case you are found without the policy you could be gravely penalized by the authorities.
However,we tend to take our vehicles for granted. Most of the two wheelers do not have their insurance covers and we end up getting ina loss in case of an accident.
Let’s find the benefits of having a comprehensive two wheeler policy.
- Protects against loss due to natural calamities
The bike policy covers fire, earthquake, flood, typhoon, hurricane, storm, cyclone and rockslide etc.
- Protects against loss due to man-made calamities
Other calamites like Burglary, theft, strike, riot, and terrorist activity, damage of vehicle in transit by road, rail in land water ways or air is covered by a two wheeler policy.
- Accidental cover
Few of the comprehensive policies have accidental cover as an in-built feature. This feature will cover the owner/ driver of the vehicle. This coverage is up to Rs 1 lakh. This add on cover can be added fora very inconsiderable premium amount.
- Safeguards your hard-earned money and provides peace of mind
Timely renewal will ease you and will provide a sense of security in case of an accident. It will take care of your expenses in that situation.
You will also be legally secured and will save the fine imposed on not carrying valid insurance.
- Exclusions to the cover
There are some instances where the cover will not be provided.
- Mechanical or electrical break down
- Normal wear and tear
- Loss or damage to accessories by burglary, house breaking or theft.
- Loss or damage due to war or nuclear risk.
- Damage to/by a person driving under the influence of drugs or liquor
- Damage to/by a person without a valid driving license.
However, it is observed especially in new bike cases,we tend to buy policy when the bike is new and forget or ignore to renew the policy on timely basis.
Consequences of not renewing the policy:
- Depletion of NCB
- NCB(No Claim Bonus) is one of the most crucial factors in a policy. With non-claim free years, the NCB provides discount on the premium of the policy.
- In case if the vehicle is not renewed for more than 90 days you will lose the NCB benefit. The NCB on renewal will stand ‘0 %’ in that case.
- NCB is transferrable, in case if you happen to buy new vehicle, you tend to miss out on the opportunity of transferring the policy NCB to the new vehicle policy.
- Renewing expired policy is a time consuming process
It will be considered as a fresh policy issuance, and you will have to go through the hassle of filling all the details pertaining to your vehicle, communication details and other details. This entire process is time consuming.
- Penalty by authorities.
Almost 70 – 75 % of the two wheelers have no insurance policies. To save few hundreds, we tend to ignore renewing the policy. However, as per the Motor Vehicle Act, 1988, it is essential to at least have a third party insurance policy.
It is illegal to drive without a policy and you could end up paying a huge. Which in comparison will be higher than your policy premium.
Hence, it is vital and advisable to renew the two wheeler policy on a timely basis. Always remember,“The early bird catches the worm”.