Bike insurance policy is typically good for 1-3 years, depending on the tenure you choose while insuring the vehicle.
The bike insurance must be renewed each year to ensure continuing coverage. Read on to learn about the frequent errors that people make when renewing their bike insurance policy, and how to prevent them to guarantee a hassle-free renewal process, particularly if you are renewing it online.
The Motor Vehicles Act of 1988 requires all bike owners to ride their two-wheelers with an insurance coverage. Riding a motorcycle without a valid insurance coverage might put you in legal problems and a fine of up to Rs. 2,000. As a result, in order to comply with the law and continue getting coverage, two wheeler insurance must be renewed.
Here are several blunders to avoid while renewing your bike insurance policy coverage online.
- Failure to claim the NCB discount: The no-claim bonus, or NCB, is a discount provided by the insurance company for not filing a claim during the policy year. This discount increases to 50% if no claims are filed during the next five years. It is critical to claim NCB at the time of renewal since it immediately decreases your net premium. NCB must be claimed within 90 days of the policy’s expiration date. As a result, in order to acquire the best coverage, a two-wheeler insurance policy must be renewed on time.
- Not verifying the policy terms and conditions: Before completing the renewal payment, carefully review the policy terms and conditions, since insurance firms are constantly changing in response to IRDA directives. Check the list of exclusions and inclusions to verify that your needs are met. Knowing the insurance terms and conditions will keep you informed and assist you during a claim; it will also help you decide whether or not to transfer to another insurer.
- Not choosing a multi-year plan: This is one of the most typical blunders car owners make when filing a claim. Choosing a multi-year two-wheeler insurance gives ongoing coverage for a period of 2-3 years, eliminating the need to renew it every year. It also saves time and minimizes the premium.
- Failure to choose the right insured stated value: Insurance providers allow you to choose the insured stated value, which is the current worth of the bike, while renewing your policy. The premium is adjusted depending on the disclosed IDV. The IDV is the maximum amount you may claim if your car is totaled or stolen. Choose a reasonable IDV for your bike rather than a smaller quantity.
- Failure to notify the insurance company of the changes: Bike aficionados like modifying their motorcycles, but they often overlook intimidating the insurance company about it, which may cause problems during a claim. At the time of renewal, it is essential to keep the insurance provider aware of any changes, since any additions will result in a high premium.
- Not double-checking the add-on requirements: A complete bike insurance coverage with a range of add-ons such as engine protection, zero depreciation, and so on is available. While adding add-ons to the standard insurance policy raises the cost, it also provides extra coverage and saves you money out of pocket. For example, if the bike’s engine is damaged, the engine cover add-on will cover the cost of repair or replacement.
- Wrong information: Another error that bike owners make is submitting incorrect information, which causes the insurance provider to easily reject the claim. It is essential to input proper information, such as the registration number, while completing the renewal form. Name of the owner, prior policy number, and so forth. If any information are incorrect, the insurance policy will be declared void, and the claim will be denied.
- Failure to purchase personal accident insurance: Personal accident insurance compensates a vehicle owner-rider in the event of death, disability, or injury caused by an accident. Coverage of up to 15 lakhs is required, and you must ensure that you purchase it at the time of renewal or otherwise.
- Failure to renew the policy before it expires: Never fail to renew your insurance policy on time, since an expired policy provides no coverage. In the event of an accident during this time, you will be left without coverage and will be responsible for any financial bills out of your own pocket. You may also lose NCB benefits if you do not renew the insurance within 90 days of its expiration.