Do you have a habit of paying late bills? Though this can be described as bad habit but the financial repercussions may not be very big but if you keep on doing the same on regular intervals, your service providers might stop the services being offered to you and might even take legal actions. But in case of bills still there is an option , if it is for the first time, you can possibly pay something extra and restore things but that is not the case of a two wheeler insurance policies. The time you forget to pay the premium on the due date the policy goes in a lapsed mode. Once the policy has gone in a lapsed state the benefits are also put on hold which is not the case of bills like telephone or internet. During this phase if you meet with an accident your claims will never be settled. This applies well also in case of third party claims.
We should know that you two wheeler policy is an annual policy and premium needs to be paid every year for getting continuous service from your insurer. The benefits of renew two wheeler insurance policy associated with comprehensive cover like own insurance , driver’s insurance and safety from third party claim stands cancelled once you forget to pay the premium on due date.
1)In case the policyholder wants to renew the plan post passing away of the premium date there are higher chances that you have to pay an extra premium for it compared to what you would have paid in case of regular renewal.
2)Post lapsation the IDV of your two wheeler is also valued on the current state of the vehicle and it all depend on the insurer’s surveyor . Loss of IDV can have serious effect on the market value of the vehicle and will not get you the right price if you want to resell the same.
3)In case of renewal of a lapsed policy after 90 days of lapsation the benefits associated with no claims bonuses vanish which otherwise would have benefited you with cheap renewal premium.
One can renew a lapsed two wheeler policy by two ways - The online mode and offline mode.We should keep in mind that in case lapsed plans most insurers don’t accept online renewals . The bad part of lapsed policy renewal is that first the two wheeler need to be surveyed by an authorized surveyor of the insurer . The policyholder might needs to wait for renewals till the surveyor has done his/her job. For insurers who accept online renewals the same can be only done through the insurers website only. If there are addons associated with your policy one should have the documents ready while getting the renewal done.
The only advise that one should look at in case if you still carry the habits of paying late or your policy going to lapsed state again and again, one should look at buying a long term two wheeler where the premium becomes due only after the three years from from date of earlier renewal or purchase. The insurance cover offered under it remains active till three years so the hassles associated with lapsed policy vanishes largely.