Bike insurance is a must for bike riders in India. It can protect them from third-party liabilities and cover own damages to the bike. However, many bike riders let their bike insurance lapse due to financial crunch or forgetting the renewal date.
While it may seem like a small matter, allowing your bike insurance to lapse can have serious consequences. In this blog post, we will discuss the risks of letting your bike insurance lapse.
Let’s take a look at these risks.
1. Loss of No Claim Bonus
Your bike insurance policy comes with a no claim bonus (NCB), which is a discount on your premium for every year that you don’t make a claim. If you allow your bike insurance to lapse, then you will lose this NCB, and your bike insurance premiums will increase.
In addition, if you have an accident while your bike insurance is lapsed, then you will have to pay for the damages out of pocket. This is risky in the event of an accident and is also more expensive in the long run.
2. Regulatory Problems
If you let your bike insurance lapse, then you may face regulatory problems. If caught riding without insurance, then you could be subject to a fine or even have your license suspended.
In addition, if you are involved in an accident and do not have bike insurance, then you will be responsible for all the damages. This includes damage to your bike and any injuries or property damage you may cause. You could end up facing thousands of rupees in medical bills and repairs.
3. Rising Expenses
The cost of bike insurance has been rising steadily in recent years, and there’s no sign that this trend will reverse anytime soon. If you allow your bike insurance to lapse, then you’ll face much higher premiums when you eventually decide to renew it.
Not only that, but many bike insurers will also charge a penalty fee for lapsed coverage. This means that you will not only be paying more for your bike insurance, but you’ll also be hit with an additional fee.
4. Time Taking Process
The two wheeler insurance renewal online can be a time-consuming one, especially if you let it lapse. You will have to go through the entire process of shopping for a new policy and comparing rates. This can take hours, or even days, depending on how much research you do.
Additionally, you will likely have to pay a higher premium for your new policy since insurers view lapsed coverage as a red flag. If you had an accident while your bike insurance was lapsed, then you would be charged an even higher rate
5. Legal Liabilities
Your bike insurance policy acts as a financial safeguard against any legal liabilities that may arise due to an accident caused by you. These legal liabilities could be in the form of third-party bodily injury or damage to property. In India, it is compulsory to have bike insurance if you wish to ride your two-wheeler on public roads.
The Bottom Line
If you’re thinking about letting your bike insurance lapse, even for a short period, then it’s crucial to weigh the risks carefully. While you may be able to save a few rupees in the short term, the potential consequences could end up costing you much more down the road.
