Know About the break-in Two Wheeler Insurance Policy

Break in two-wheeler insurance policy

Hi Guys, I’m Sneha, Rahul’s sister. You all enjoyed the rides on his Super Bike (SB), dad’s graduation gift to him. He lavished all his love and affection on SB to the exclusion of all. Now they are both in the hospital. Rahul will be out in a day but his beloved SB is totaled. Know what! All the love and affection and he forgot to renew SB’s insurance. The damages are ninety-five grand which Rahul bhai is condemned to bear, courtesy our dad. What was a year’s premium? Just Rs. 2745/-!

Rahul’s case is not uncommon. Being a youngster there are far too many adventures on your mind than renewing your two-wheeler insurance policy. That is why you, knowingly or in ignorance, let your policy lapse. But, is it a wise choice?

No, it is not. Here are the reasons why:

A lapse calls for an inspection: If your two-wheeler insurance lapses, the coverage stops. When you try and renew the plan after a lapse, the insurance company calls for an inspection of the vehicle. The company sends a surveyor to check the condition of the two-wheeler. The policy is renewed only if the surveyor Oks the inspection. This inspection has many disadvantages:

• The process is hassling and requires time. You would have to contact the insurance company for the inspection,wait for the surveyor to come, inspect and approve the inspection. Then the insurance policy would be renewed.
• The premiums are, usually, higher after an inspection than they would have been had the policy been renewed on time.
• Your bike’s IDV (Insured Declared Value) decreases considerably. Since IDV is the effective amount of coverage, you get a lower claim if your bike is stolen or damaged beyond repairs.

You have the danger of losing out on any accumulated No Claim Bonus: In any year when you are a careful driver and do not make a claim in your two-wheeler insurance policy, you earn a No Claim discount in the next year’s premium. This discount increases for every successive year when no claim is made. So, you can accumulate as high as 50% discount in your renewal premium with the No Claim discount feature. However, this accumulated discount is threatened in case of a lapse. If there is a break in your two-wheeler insurance coverage and you do not renew your policy within 90 days, any accumulated discount would be lost. Would you want to lose this discount and pay a higher premium?

You violate the law: Driving without a valid insurance cover on the two-wheeler is a legal offence. If caught, you not only have to pay a penalty, you might get your driving license confiscated. Do you want to get entangled in such legal hassles? I hope not!

You have to shoulder the risk of any loss: This is what happened with Rahul. Since he did not renew his two-wheeler insurance policy on time, his savings suffered the brunt of the damages he faced. When you are driving a vehicle whose policy has expired, there is no coverage. If you meet with an accident you would be financially responsible for any consequences. Though you might be able to handle the repair costs on your own but what if you strike down a pedestrian and cause him / her injuries? Would you be able to handle the compensation payable to him / her?

Youth is a wonderful time when you have minimal responsibilities. Renewing your bike insurance policy is, however, a responsibility which you should shoulder responsibly. You would be open to various inconveniences if there is a break in your insurance cover. With a limited pocket money why take the risk of facing these inconveniences. So, don’t repeat Rahul’s mistakes. Renew your bike insurance policy on time and enjoy the privileges of your bike for the rest of the year. The adventure trips can wait. Renewal of your bike insurance policy cannot.

Choose wisely!