This is the Right Time to Change or Upgrade Your Bike Insurance Policy

Having two-wheeler insurance is one of the most crucial documents you need to have when riding your bike in India. The Motor Vehicles Act, 1988, states that riding without third-party liability coverage is illegal. However, since third-party cover only compensates for bodily injury or property damage to others, any damage to your bike requires repair bills to be paid out of your pocket.That is why experts recommend investing in comprehensive bike insurance,which offers coverage for both third-party legal liabilities and damage to your own bike.

Have you ever wondered what happens if you need to change or upgrade your bike insurance policy?Are you also confused with questions like when are you allowed to do so and what are the steps involved? We break down these questions for you in detail in this article

When to upgrade your two-wheeler insurance?

1. At the time of renewal

This is the ideal time to change or upgrade your two wheeler insurance policy. When the policy is about to expire, you simply need to visit the insurer’s website or mobile application, share your policy details, and pay for the renewal. You won’t need to undergo the hassle of providing various documents or information.

During renewal, you can enhance the policy’s coverage scope by adding one or more of the following riders/add-ons, such as:

• Roadside assistance cover
• Zero depreciation cover
• NCB protection cover

2. During policy period

You may opt for this approach if you have long-term bike insurance with a validity of three years. However, upgrading during a running policy is a complex process. First, you must request your insurer to cancel your current plan/policy and activate the new policy with the required upgrades.

It is recommended to avoid riding your two-wheeler until the policy activation, as the acknowledgement slip won’t help you claim for the losses if your bike is involved in an accident.

3. Purchase of a new bike

When you wish to replace your existing bike with a new one, you must transfer the registration certificate and the insurance copy to the new buyer’s name, in case of purchasing a pre-owned vehicle. By law, you must complete the transfer process within 14 days.The insurers can reject the claim if the insurance policy isn’t transferred on time, leading to legal repercussions.

To change the name on the insurance document through a transfer process, follow these steps:

• Visit the official RTO website and download Form No. 28, 29, and 30.
• Fill out the forms completely and provide all required documents.
• Obtain a clearance certificate from your RTO confirming no outstanding taxes or challans in your name.
• Surrender the policy documents and provide the details of the new owner.
• Pay any applicable fees.
• The new owner will receive the updated policy document with his/her name either by courier or electronically.

4. Lapsed Coverage

Youmustchange or upgrade your policy when it has expired. However, upgrading during this time has multiple consequences. Firstly, with a lapsed policy, you cannot make claims if your vehicle sustains damage or causes injury to a third party person or his/her property. Another consequence is that if the traffic authorities catch you without an active plan, you may be imposed with a penalty of ₹2,000. For repeated offences,the fine is ₹4,000 and/or three months imprisonment may apply.

Last but not least, there is the loss of the “no-claim bonus." Insurers usually offer a 90-day grace period for a lapsed policy. If you fail to renew your insurance policy within this duration, you will lose the continuity benefits of your policy. Also, renewing after the grace period may result in a detailed bike inspection by the insurer, complicating the renewal process.

How to renew your bike insurance policy online?

1. Browse the official website of your insurance provider.

2. Go to the renewals page

3. Under the 'Renew With' section, choose from 'Policy Number,' 'Phone Number,' or ‘Vehicle Registration Number.’

4. The new webpage will display the details of your current policy. Click on the 'Renew' option.

5. If you wish to add riders, select from the list. If your bike is older than five years, you may have to declare Insured Declared Value aka IDV in bike insurance.

6. Make the premium payment online. If you have a no-claim bonus reward, include it to obtain a discount of up to 50% on premiums.

Conclusion

Upgrading or changing your bike insurance policy is essential for ensuring comprehensive coverage and compliance with legal requirements.The best time to make changes is when you are renewing the policy, buying a new bike, or within the policy period. If your policy lapses, remember the legal and financial implications. By following the outlined steps for renewal and upgrade, you can maintain optimal protection for your bike and avoid potential issues.

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