Every insurance policy comes with an expiry date. Like your ordinary insurance covers, two-wheeler insurance also has an expiry date. The insurer’s coverage ends the day when the policy expires.
But one always has the option to renew such policies. The insurance companies ensure reminders are sent out via mail and text messages for renewal. Despite these timely reminders, there are instances when some policyholders miss out on renewal.
Now here is the confusion for the policyholders. What will happen to my policy if it expires? Will I miss out on any bonuses earned? Is there a buffer period?
Read on to receive answers for these questions –
When you purchase a 2 wheeler insurance policy, the insurance company protects your vehicle for a specified duration. This duration is called the tenure of your insurance policy. On the expiry of this tenure, you have the option to either renew it or purchase a new one. But in case you forget either of them, the regulatory body, the Insurance Regulatory and Development Authority of India (IRDAI), grants a second chance to renew your policy.
The late renewal of your two-wheeler insurance is allowed until the grace period without any significant consequences. If renewed within this period, it will not be considered as a break between two policy tenures.
Although the grace period does not offer any extra days of insurance cover under the existing plan, the policy benefits are carried forward if renewed within this duration. Your policy coverage ends on the last day as mentioned in your policy document. This grace duration is only an added facility for paying premiums without losing out on accrued policy benefits.
Now you may ask – ‘Does that mean I have to pay fines even if my insurance plan has expired?’
Yes, you need to pay all your statutory dues and fines if your insurance plan has expired. The amended Motor Vehicles Act, 2019 makes it mandatory to have an insurance policy. Thus it is always advisable to stay on the right side of the law and make timely two wheeler insurance renewal to avoid any hefty penalty.
The next question that might pop in your mind is – ‘What is the point of the grace period?’
The grace period is a period over and above your regular policy tenure. Some insurance companies might provide grace days so that there might not be any increase in the premium amount. To simplify, the insurers overlook the grace duration and renew your bike without inspecting it once again.
Thus, if you want to skip the hassles of inspecting your bike at each renewal date, it is advisable you do not rely on the grace period and renew your two wheeler insurance third party or comprehensive policy in advance.
These few days might give you the check for other insurance players in the market that offer similar coverage at affordable prices or more cover at the same premium. In either case, it is mandatory to have bike insurance, so why not do it beforehand?