According to Indian law, all two-wheelers must have valid insurance to ply on road. When you purchase a new bike, the dealer can offer you a basic insurance policy. A standard policy usually comes with a one-year tenure. So, you need to renew the plan every year. If the policy is not renewed on time, the owner may face fine and/or even imprisonment. You can renew your bike insurance online from the comfort of your home. However, many two-wheeler owners make mistakes while renewing their bike insurance policy.
Here are some basic mistakes that you should avoid while renewing your two-wheeler insurance policy:
The no claim bonus (NCB) discount is the reward from the insurance provider to the policyholder for not raising a claim during the policy tenure. Often, customers forget to claim this benefit at the time of renewal.
According to experts, long-term two-wheeler insurance is more beneficial than short term plans. So, if possible, you should opt for a multi-year policy at the time of renewal. In this way you can save on the premium along with leaving the worry about the yearly policy renewal.
Riders are additional benefits in an insurance policy against paying a little extra money. A comprehensive car insurance plan hosts a range of add-on covers. But during the renewal of the policy, many people generally ignore those covers.
Giving incorrect details while renewing a bike insurance policy is the biggest mistake. The insurance cover may become invalid if the information is found to be incorrect. So, during renewing your bike insurance policy, you should carefully put all the details.
If you have added new accessories or modified your vehicle during the policy period, you need to inform your insurer during the renewal process. If you do not declare these changes, there’s a good chance that your claim will be rejected or you can get a reduced claim amount.
Insurance providers might regularly modify their terms and conditions. So, read all terms and conditions carefully while renewing your bike insurance to know the policy exclusions and other important things.
Download Money9 App for the latest updates on Personal Finance.