Bike insurance renewal is an important time of your two-wheeler insurance cycle. Typically, when you purchase a new motorcycle or scooter, the dealer will provide you with a one-year third-party bike insurance policy for standard two-wheelers.
After a year, the policy must be renewed, and for someone who is doing so for the first time, renewing the policy in an odd manner may be challenging.
The time of two-wheeler insurance renewal is crucial as this serves as an opportunity to shift to better bike insurance. The people who are new and having their first time renewing bike insurance may make some mistakes which can be avoided if proper awareness is given to them. Below are the mistakes to avoid when going for bike insurance renewal online:
1. Not Renewing the Policy on Time
When your bike insurance policy ends, not only you will be unprotected but can be subject to criminal offense riding a bike without insurance. Any mistakes that occur at that period will very certainly result in significant financial loss. You must get your two-wheeler insurance online within 90 days of its expiration date to keep your NCB benefits. Make sure you renew your coverage before it expires.
2. Losing the NCB Discount
The No Claim Bonus is a discount given by insurers to policyholders who make no claims during the course of a policy year (NCB). This rebate may lower your premium for the next policy year. Despite the fact that the grace period gives consumers 90 days to renew bike insurance policies before they expire, many people fail to do so, missing out on the NCB discount they’ve built up over time.
3. Filling Incorrect Information
One of the major problems some people face is that they end up filling in wrong information which delays their two-wheeler insurance renewal. Details like the vehicle registration number, previous insurance policy information, and the year of purchase must be entered carefully. If these details are shown to be incorrect, the policy may be judged invalid.
4. Not-Opting for a Multi-Year Policy
When you renew two-wheeler insurance online, you can opt for a new policy. A multi-year policy is advantageous as it does not require renewal every year and also allows for a lesser premium amount as compared to a standard policy. When you renew a third-party or comprehensive bike insurance coverage with a multi-year policy, you can save money and avoid having to renew your two-wheeler insurance policy every year.
5. Not Providing Modification Details
Any modification done to the bike changes the IDV and hence the coverage provided for the bike. It is essential for every policyholder to duly reveal all the changes made to the bike. You must provide specifics about the parts that have been modified when you renew bike insurance, to avoid any hiccups during the claim. If you fail to notify the insurance company of any changes, your claim may be denied or your claim amount may be decreased.
6. Not Selecting Higher IDV
While renewing your comprehensive bike insurance policy, it is usual practice to be able to customize the Insured Declared Value (IDV), which represents an approximate market value. If you choose a higher IDV, your coverage premium will increase in proportion. If you’ve observed a lack of suitable protection, boosting your IDV at renewal time is an excellent way to make up for any coverage shortfalls.
7. Not assessing the Need for Add-Ons
A third party bike insurance is very basic and does not provide any additional benefits. At the time you renew two-wheeler insurance online or offline, make sure to go through the various add-ons like Depreciation Cover, Personal Accident Cover etc. which can be very beneficial. Many people fail to pay attention and find them with an insufficient policy for the rest of the ear.
8. Not Buying PA Cover
The Indian law makes the Personal Accident cover a must-have for all bike riders. A PA Cover provides major protection in case of an accident or sudden death. Do not ignore the cover. You need a PA Cover if you own multiple vehicles.
Bike insurance renewal online is easy and much more convenient. People, on the other hand, make the faults stated above owing to a lack of awareness. As a result, you should make sure you don’t make the same mistakes so that you can get your policy renewed without any issues or losses.