Avoid These Mistakes When Renewing Your Bike Insurance Policy Online

Each year to avail continued coverage, the bike policy has to be renewed. Read on to know the common mistakes that people usually make at the time of bike insurance renewal and it is necessary that you avoid these to ensure a hassle-free renewal experience, especially if you are renewing it online.

The Motor Vehicles Act, 1988 makes it mandatory for every bike owner to ride the two wheeler with an insurance policy. Riding the bike without a valid insurance policy can land you in legal trouble and also attract a fine up to Rs. 2,000. Hence, to abide by the law and continue receiving coverage, renewal of two wheeler insurance is necessary.

Here are mistakes to avoid at the time of bike insurance policy renewal online.

• Missing out on claiming the NCB discount: No claim bonus, NCB is a discount offered by the insurance company for not making a claim in a policy year. This discount goes up to 50% provided no claims are made in the period of 5 years. At the time of renewal, it is important to claim NCB as it directly reduces your net premium. NCB can be claimed within 90 days after the policy expiry date. Hence, to receive optimum coverage, it is necessary to renew a two wheeler insurance policy on time.
• Not checking on the policy terms and conditions: Before making the renewal payment, check on the policy terms and conditions carefully as insurance companies keep on making changes based on the directions of the IRDA. Check on the list of exclusions, inclusions and ensure that your requirements are covered. Having an idea of the policy terms and conditions will keep you informed and help you at the time of claim; it will also help you decide if you should switch to another insurer or not.
• Not opting for a multi-year plan: This is one of the most common mistakes vehicle owners end up making at the time of claim. Opting for a multi year two wheeler policy ensures continuous coverage for a period of 2-3 years, without the hassle of renewing it every year. It also helps in saving time and reduces the premium.
• Not choosing the correct insured declared value: At the time of renewal, insurance companies give you the option to decide on the insured declared value which is the current value of the bike. The premium increases or decreases based on the IDV declared. IDV is the maximum amount you can claim in case of total loss or theft of the vehicle. Opt for a suitable IDV for your bike and don’t opt for a lower amount.
• Not informing the insurance company about the modifications: Bike enthusiasts like customizing their bikes, however, they often miss out on intimidating the insurance company about the same which can create a problem at the time of claim. At the time of renewal, it is necessary to keep the insurance company informed about the modifications as any additions made will attract a high premium.
• Not checking on the add-on requirements: A comprehensive bike insurance policy can be opted for with a variety of add ons such as engine cover, zero depreciation, etc. While addition of add ons to the base insurance policy does increase the premium, it also helps in providing additional coverage and saving you from out of pocket expenses. For instance, in case the bike’s engine is damaged then the engine cover add-on will provide coverage for repair or replacement of the same.
• Furnishing incorrect details: Another mistake that bike owners end up making is providing incorrect information due to which the claim can be rejected easily by the insurance company. When filling out the renewal form, it is important to enter correct details such as registration number. owner’s name, previous policy number, etc. In case of mismatch of any details, the insurance cover will be found to be invalid and the claim will be rejected.
• Not opting for a personal accident cover: A personal accident cover provides compensation in case of death, disability or injury caused to a vehicle owner-rider due to an accident. Cover of up to 15 lakhs is mandatory and hence, it is important that you don't miss out on buying it at the time of renewal or otherwise.
• Not renewing the policy before its expiry: Never miss out on renewing your insurance policy on time as an expired policy does not offer you any coverage. In case of any accident caused during this period, you will be left with no coverage and will have to bear all the financial expenses out of your pocket. You may also lose out on the NCB benefits if you don’t renew the policy within 90 days after expiry.

Also Read: All you need to know about passenger cover in two wheeler insurance