What is Lapsed or Expired Two-Wheeler Insurance Policy and How to Renew it

Posted on: March 24, 2017, by :

An expired two-wheeler insurance policy takes away your security and peace of mind. And it doesn’t end here, the insurer has all rights to inspect your vehicle again. The reason is simple— the ball is in their court! Of course, you can reinstate a lapsed two-wheeler insurance policy, but why should you take a chance?

According to a survey conducted by one of the leading insurers, 75% of two-wheelers running in India are uninsured, even when it is compulsory for all vehicles to have a third-party insurance under the Motor Vehicle Act. As most of the new owners get a bike insurance policy at the time of buying a vehicle, it is the old ones who are ignoring the cover.

But without a cover, you are making yourself vulnerable to losses or damages that may arise when you hit the road. It is feasible to revive the lapsed policy as well. So, before discussing ‘how’, let’s first understand:

What is a lapsed two-wheeler insurance policy?

A lapsed two-wheeler or motorbike insurance policy means the policy is no longer active. A policy will lapse when premium payments are missed. In such a situation, all rights and benefits will cease to exist.

What are the repercussions of a lapsed two-wheeler insurance policy?

If a policy stays lapsed consecutively for 90 days, it affects the No Claim Bonus (NCB) which becomes zero. Additionally, the insurer has all rights to raise the premium for the next cycle at the time of reinstating a lapsed policy. As stated above, you will also be exposed to various risks, including third-party liability.

How to renew a lapsed two-wheeler insurance policy?

Mainly, there are two ways through which you can revive your lapsed two-wheeler insurance plan:

The Easy Way

Online Mode:

In one sentence, online mode is fast and hassle-free. With a click of the mouse, you can purchase or renew your policy from anywhere at any time. Since most of us are not internet-savvy and may have reservations when it comes to renewing the policy online, almost all the insurance companies have chat facility on their websites where customers can seek clarification in case of any doubt. Also, you can call on a toll-free number of the insurer and take the offline route.

Here are a few steps that need to be taken to renew a lapsed two-wheeler insurance policy online:

  • Keep all the important documents like previous policy details, vehicle’s registration number/date, etc.; handy as you will be required to fill all the information when you log on to the insurer’s website
  • Enter the details like vehicle make, model, ex-showroom price, etc.
  • Make payment by choosing any medium like debit/credit card, NEFT, cheque, etc.

Once the entire procedure is over, you will receive a mail from the insurance company with a soft copy of the policy. By resorting to online mode, you can skip the conventional mode, in which the insurer can insist on the vehicle inspection as well. Some insurers even reinstate a policy which is lapsed for more than 90 days.

It is not necessary to renew your lapsed policy from the same insurer from whom you bought the policy previously. You can visit any other insurer to revive your lapsed insurance policy. However, no coverage will be available before the policy renewal.

The Hard Way

Offline Mode

So, you don’t like anything that comes easily to you. It doesn’t feel like a victory if you do not shed some sweat and blood. Well, for a warrior like you, offline mode is the way to renew your lapsed bike insurance policy.

This way demands you to visit your insurer’s office with all the necessary documents. The insurance executive will review all the documents and inspect your vehicle before renewing, if required.

Is there a way to ensure there is no gap in the policy renewal?

Yes, by opting for a long-term two-wheeler insurance, you can ward off troubles and risks associated with an expired two-wheeler insurance policy. Sometimes, a policy expires because the policyholder forgets to renew it. Further, even if a person remembers renewal date, he/she might fail to renew it due to paucity of time.

By choosing a long-term bike insurance policy, you can take care of these issues. In this, you will get the insurance coverage for two or three years in one go. It means, you don’t need to keep track of annual policy renewal dates and your bike or scooter will stay insured without any hassles of yearly policy renewals. Moreover, you can also enjoy discounts on the own damage part of the premium by buying a long-term insurance policy. As IRDAI revises third party premium rates every year, you can insulate yourself from higher third party premium rates by opting for a long-term two-wheeler insurance policy in which your third party premium rates remain fixed.

Golden Tip

Remember, a lapsed two-wheeler insurance policy is equivalent to ‘no’ policy, so always pay premiums on time and keep your next ride secure.

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