You might have come across countless times on the growing importance of bike insurance plans. While it is required by law to have an insurance policy for all vehicle owners, it is something that absolutely cannot be skipped. A motor insurance policy is not only required to be purchased just once, but also needs to be periodically renewed. It should be noted when buying a vehicle, whether car or bike.
But in your busy lives with fast approaching deadlines whether at work or in your personal life, it isn’t always that you remember to pay on time. Despite countless reminders and email notifications, it might just happen that you miss a payment due date. It can even happen in the case of your two wheeler insurance policy. This results in a break in the renewal cycle and is called the break-in period.
What is the break-in period in two-wheeler insurance renewal?
Break-in period is the duration between the end of your current policy and the renewal of the next one. To summarise, it is the duration between the policy expiry and the two wheeler insurance renewal. Let us understand with an example. The coverage insurance policy ends on 15th March and you miss the renewal date. Subsequently, you renew the same policy on 15th April. The duration when your policy was inactive after the end of coverage and before the beginning of the next one is called the break-in period.
What happens if you miss your two-wheeler insurance renewal?
Apart from not having coverage for your bike, there are legal as well as financial effects of a break in your insurance plans.
Legal effect
It is mandatory for all bike owners to have at least third party insurance for bike. Thus, riding your bike without an insurance cover makes it illegal and can attract hefty penalties. The fine for riding without insurance policy is ₹ 2000 and/or 3 months of imprisonment. For repeated offenders, this amount increases to ₹ 4000 and/or 3 months of imprisonment. Keeping these expensive penalties in mind, riding your bike during the break-in period isn’t advisable. After all, you do not want to pay these penalties for negligence.
Financial effect
When you do not renew your policy on time, you lose the base coverage that is available to you. This can result in financial losses due to unforeseen circumstances like accidents and damages. Any cost of repair during the break-in period shall be required to be entirely borne by you. You can equate break-in period to having no insurance at all and it is never a safe place to be in. So, remember to renew your policy on time and enjoy continuous coverage and mental peace knowing your insurance policy exists to take care of the repair costs to your vehicle.
No-claim bonus (NCB)
No-claim bonus is a concession offered by the insurance company for not making any claims in the previous policy tenure. This benefit is only available at renewal. Renewing your policy during the break-in period up to 90 days after the due date can help to preserve this no-claim bonus.
Therefore, avoid renewing your policy right at the end or during the break-in period. This will help you stay without an insurance cover and help you take advantage of policy benefits available with a continuous renewal.
