Negosentro.com | Arya T N | Why you must renew your Bike insurance policy, even if you are not driving your vehicle during this lockdown | With severe restrictions being imposed on vehicular transportations across the world, most of our vehicles are idling in our garage. We are advised to go out only when it is absolutely necessary and to avoid unnecessary loitering. Since countries are going into lockdown and most companies still following the work from home policy, our bikes and two-wheelers are no longer used for daily commutation.
We might even have forgotten all about the necessary documents that need to be kept updated. Once such an important document is your Bike Insurance policy. Most of you might be considering against renewing your insurance policy. The most common reason being “Why must I renew the policy if I am not riding my vehicle and I can’t get into accidents, neither will I be caught by the police”.
Here are 10 reasons why it is important to renew your policy on time, even if you will not be driving your vehicle for some time.
- Buying a fresh policy will increase the premium – If you decide not to renew your policy now, once the lockdown is over, you will be required to buy a new premium policy. This would be costlier than renewing your existing policy. Trying to save money in the short run can cost you more in the long run.
- Secure your No Claim Bonus – No Claim Bonus(NCB) is the bonus offered to you by the insurance company for not filing any claims with them. This bonus usually comes as a discount on your premium amount when you renew your policy. Even if you are renewing your insurance policy with a new company your No Claim Bonus from the previous company will get transferred. However, if you don’t renew the policy on time, this NCB bonus will get lapsed. For every passing year that you haven’t filed a claim, the NCB bonus would increase. If you break the streak now, all the NCB bonus that you have built up until now will be lost and you will have to start afresh.
- Impossible to raise a claim after expiry – If your insurance policy has expired and then you decide to file a claim, your claim would be outright rejected. You are only allowed the benefits of the insurance policy as long as you have a valid unexpired insurance policy.
- Inspection would be required when buying a policy after a gap – If you are renewing or buying an insurance policy after a long gap from your previous policy expiry date, then you would be asked to submit your vehicle for inspection by the insurer. This is to check if there are any pre-existing damages. Considering the lockdown situation it would be all the more hassle to get your vehicle inspected now. Whereas if you were to continue renewing your policy on-time, no inspection will be needed. You can get the policy renewed within minutes.
- Make use of the additional perks and discounts offered by insurance companies – Due to the reduction in business during the lockdown, a good deal of insurance companies have come forward with attractive discounts and perks to woo in more customers. These include reduced premium prices, extending policy period free of cost, etc. This lockdown would be an ideal period to renew your policy to save a buck or two and also get the most out of the premium you pay.
- Protection against theft – Lockdown hasn’t bought any lockdown on the rampant thefts happening around the country. If your bike is stolen and if your policy has expired, there is no way you can claim the insurance amount. Only if you have a valid insurance policy, can you file a claim.
- Protection against natural calamities – Natural calamities can come calling unprecedented. Earthquakes, floods etc can cause damage to your life as well as property. It is best to have a valid insurance policy in-hand to safeguard your vehicle during these testing times. This can also ease up the financial burden during this economic slowdown.
- Be legally compliant – Despite the lockdown, you would still be required to go out to run important errands and emergencies. Driving without a valid insurance policy is illegal in India. This rule is still intact even during the lockdown. Without a valid insurance policy, it is illegal for you to drive in Indian roads and if caught you will be levied a fine of Rs. 2000/-.
- Avoid paying unnecessary hefty fines – Lockdown has led the authorities to enforce strict checking procedures across the country. If you are caught without a valid insurance, you will have to pay a fine of Rs.2000/- the first time. If you are caught a second time, the fine would be Rs.4000/-. These amounts would be significantly higher than your bike insurance policy. Hence it is always better to renew your policy on time rather than wasting your money on hefty fine.
- Protection against accidents – If you decide to step out and unfortunately end up in an accident, whatever legal liabilities you have against the person you have caused damages to, will be covered by the insurance policy. If you don’t have a valid insurance policy, you will have to pay from your own hand for the damages caused to another person’s vehicle due to your negligence. This will add more burden to your finances.