According to new rules, a bike owner must buy a 5-year third-party coverage policy in addition to a 1-year own-damage policy. If you opt for a comprehensive bike insurance policy, you need to buy 3-year bike insurance.

You can make this insurance for 2-wheelers a profitable deal by using a bike insurance premium calculator. But you maximise the profitability by following a simple rule: timely bike insurance renewal.

In this blog, we will discuss policy renewal and the merits of renewing your bike insurance policy in time.

 Bike Insurance Renewal

When you buy insurance for your 2-wheeler, you make a personalised contract with the insurance company for a specific period, which is also known as the policy period. Once you pass this threshold, your contract of protection, i.e., the bike insurance policy, expires and eventually lapses.

In order to continue the policy, you have to renew your contract, the policy, with the insurance company, and this is called the bike insurance renewal procedure. Since your bike insurance policy comes with an expiry date, it is your responsibility to renew it to ensure continued coverage.

Even after the expiry date of the policy, the insurers offer a grace period for bike insurance renewal. You can follow and complete the straightforward renewal procedure. However, if you fail to renew your bike policy within the grace period as well, your policy lapses and is rendered invalid.

Thankfully, bike insurance renewal online is possible, increasing the convenience and enhancing your policy experience.

 Advantages of Timely Bike Insurance Renewal

●         No Lapsed Policy

One of the most significant advantages of timely bike insurance renewal is that there is no policy lapse. A lapsed policy signifies an expired and invalid bike insurance policy that has been rendered useless due to lack of renewal. When your bike insurance policy lapses, you lose the financial protection, coverage, sum assured and all the benefits that are tagged along with the policy.

Timely bike insurance renewal online will ensure your policy’s validity and its lasting life. A renewed policy also signifies reduced out-of-pocket expenses on your bike.

●         Continuous Protection

Renewing your bike policy in time enables continued coverage. This means that your bike is financially and physically protected, thanks to the policy renewal. Total or partial loss can happen anytime, and you need this protection. Thanks to bike insurance renewal, it is possible.

Suppose you bought your bike insurance policy from Tata AIG. The company will remind you of the renewal a few times. The official website allows you to renew your Tata AIG bike insurance online. All of this collectively ensures your policy’s increased life and your continued protection.

●         Legal Compliance

Your Tata AIG bike insurance renewal enables legal compliance. As mentioned above, it is mandatory to buy insurance for your 2-wheeler in order to protect it and your financial health. Riding without a valid bike insurance policy may lead to hefty fines, penalties and even punishments.

By renewing your insurance for a 2-wheeler, you make sure that you adhere to this mandate and stay out of legal trouble.

●         No Lapse Fees and Premium Hikes

Late renewal can also result in penalties and fees from insurance companies. If you miss bike insurance renewal online or offline, even after the grace period offered by your insurance company, you might have to pay lapsed policy fees. Some insurers (not all) apply this lapsed policy fee at the time of policy renewal as a penalty.

A lapse in your bike insurance policy leads to a significant hike in premium rates at the time of late renewal. Insurance companies usually consider a lapsed policy a sign of increased risk, which results in an increased premium for 2-wheelers.

You must complete the renewal procedure on time to avoid the imposition of late fees and increased premiums.

●         No-Claim Bonus Accumulation

A no-claim bonus refers to a substantial discount on policy premiums at the time of policy renewal. The NCB feature is a reward from the insurance company to you. When a policyholder does not file a claim during the policy period, they are rewarded with a no-claim bonus.

The most important thing about NCB is that it accumulates. The deployment of the NCB feature in your bike insurance policy is valid only if you renew your policy in time. If your policy lapses, you may lose your accumulated NCB. In order to save this opportunity, you need to renew your policy in time.

 Pro Tip

It is a good practice to begin your bike insurance renewal procedure a few weeks before the expiry date arrives.

 Ending Note

Renewing your bike insurance policy within the given time limit is not an unrealistic or taxing demand. It is a pretty straightforward process that needs attention to details and a few reminders. Luckily for you, insurance companies have employed automated systems that email and message you when you need to renew your policy.