Impact of Riding a Bike with Lapsed Insurance Plan

Impact of Riding a Bike with Lapsed Insurance: Driving a car is relatively safer as the driver is seated inside the car. Riding a two-wheeler, on the other hand, is considered to be unsafe, as the rider is open to multiple dangers. Thus, every biker needs a safety net through insurance.

Your bike should be insured every time you are ready to hit the roads. Sometimes, you may forget to renew your two-wheeler insurance, and your policy can lapse. However, to avoid any legal penalties and financial losses, you must renew your bike insurance on time.

Two-wheeler insurance is mandatory in India. It safeguards you against heavy expenses incurred due to natural disasters, man-made calamities, damage/loss of the vehicle, and third-party liability. Thus, you must renew your two-wheeler insurance and never allow it to lapse.

Here is a complete guide on the effects of riding with lapsed insurance and how to prevent this situation in the first place. What will happen if you ride the bike with lapsed insurance?

According to the reports published on IRDA, 70% of individuals riding a bike in India either have no insurance, or their insurance had lapsed. A lot of things may happen if you are riding a bike with a terminated insurance policy. These include:

1. Loss of No Claim Bonus (NCB) – You should remember your insurance renewal dates. If more than 90 days have passed after the expiry of your bike insurance your NCB is lost and you will no longer be entitled to an NCB. Moreover, you cannot even transfer the NCB points to a new vehicle policy, if at all you buy one.

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2. Heavy Penalties – Insuring your two-wheeler is mandatory according to the Motor Vehicle Act, 1988 and riding a bike with lapsed or no insurance is a punishable offence. If a rider is caught riding the bike without a valid insurance policy, he may be fined up to Rs 1000 or can be imprisoned for three months, or both.

3. Legal Liability – With a lapsed policy, you will not be secured against accidental losses or other expenses borne by you in an accident. In case of loss of life of a third party, the compensation given to the family of the deceased will be borne by you and not by the insurance company.

4. Increased Risk – The impact of a lapsed policy is not just restricted to your current insurance. You can also face issues while purchasing an insurance policy the next time, as the new insurance company may doubt your premium paying capacity. Thus, you are at higher risks.

What to do if your bike insurance has expired?

Ideally, you must renew your bike insurance much before its expiry. If at all it has expired, you must immediately get in touch with your insurance company and submit the necessary documents for the renewal process. To avoid such a situation, it is important to renew the insurance policy as soon as possible.

How to renew your two-wheeler policy?

Two-wheeler insurance is vital as riders are likely to get injured during an accident. An insurance policy makes the situation less painful for you. If you miss renewing your two-wheeler insurance policy on time, here’s how you can get your policy reinstated.

  • Renew your two-wheeler insurance online by visiting the website of your insurance provider and submitting your renewal application form
  • Enter the correct details of your two-wheeler and the expiry date of your insurance policy
  • Next, browse through the policy details and the premium options
  • You can also use a two-wheeler insurance premium calculator to calculate the monthly premiums
  • Make the payment online using their secure payment gateways
  • You can ask for policy-related documents instantly, and you will be awarded NCB accordingly
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How to avoid lapsing of insurance renewal?

The best away to avoid lapsing of insurance policy is to keep a check on the expiry date of the insurance. You can set a reminder on your mobile so that you can renew the policy on time. You can also sign up for SMS and email alerts. Most insurance providers send timely renewal reminders, so you do not have to worry.

Last year, the Supreme Court issued a mandate for all bike owners to insure their vehicle for five years at the time of purchase. Purchasing long-term insurance policy covers can allow you to enjoy maximum benefits and avoid the unpleasant consequences of using a lapsed policy.

To sum it up

Insurance is a safety net that protects you from financial losses owing to an accident involving your bike. Ensure you pay your premiums well in time and avoid riding your bike with an expired or a lapsed insurance policy.

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