Grace Period in Two Wheeler Insurance

A two-wheeler insurance policy is bought for a specific period, which is known as the policy term. When this policy term’s expiry date nears, your insurer starts sending you reminders to renew it. Even after these reminders, some people still don’t bother with two wheeler insurance renewal and their policy expires. However, there is something known as a ‘grace period’, which is a second chance to renew your policy without losing out on any accumulated benefits. Grace Period People often tend to forget important dates. One such example is the renewal date of their bike insurance . For such people, a grace period is a blessing as it offers them another chance to renew their insurance policy. Timely renewal is important because you cannot ride your bike on Indian roads without a valid insurance policy. However, some people might misinterpret the term ‘grace period’. This does not mean you get a grace period to keep your coverage intact. Once the policy term expires, you lose your insurance coverage completely. But during the grace period, you are allowed to renew your policy while retaining the accumulated no-claim bonus (NCB) and without having to go through the entire inspection process again. What happens on insurance policy expiry? You have to pay a fine for riding your two-wheeler with an expired insurance policy; there is also a possibility that you land up in jail. The reason being, as per the Motor Vehicles Act, 1988, it is mandatory for all bike owners to have at least a valid third-party liability policy. In order to stay on the right side of the law, you need to renew your policy before it lapses. How does grace period help? Grace period is an extension of 30 days after your policy term’s expiry. Some insurers offer you this extra time so that you can carry out the process of two wheeler insurance renewal online without increasing your premium amount and getting your bike inspected. If there is no grace period and your two-wheeler insurance policy lapses, your insurance provider would want to inspect your bike all over again before renewing it. Hence, if you carry out the two wheeler insurance renewal process on time, you will save yourself from the long and tedious inspection process. The wiser thing would be to avoid the entire ‘grace period’ web and not wait for your policy to lapse. An ideal method is to set a reminder 10-15 days prior to the expiry date. This will help you in multiple ways, i.e. you will get enough time to compare various policies online, review and make any changes, if needed, in your existing policy, and finally renew it or buy anew. Grace period sure is helpful, but why rely on it when you can renew your insurance policy beforehand. While the effort taken to renew expired two wheeler insurance online may not be as much, it is still best avoided. Now you know there is no escaping from renewing your bike insurance policy. If you want to ride your bike legally on Indian roads, you need to have a valid insurance policy just like you need to have your driver’s license. Keeping the mandatory aspect aside, you must insure your vehicle to protect yourself from financial losses in the future. Make an informed choice and read the terms and conditions carefully before purchasing the insurance policy.