Driving a motorbike without having a valid two-wheeler insurance land own in trouble with the authorities and also damage you financially in case of a road accident. Under Indian Vehicle Act, third party auto insurance is compulsory for a vehicle owner.
Still, majority of two-wheelers running on streets across the country are not covered. Vehicle owners will know the benefits of third party auto insurance in case of a road mishap. Generally, most motorbike owners avoid renewing their policies after the initial two-three years.
In fact, insurance agents also show less interest in selling such plans because of its low profit rate. When the two-wheeler insurance lapsed, buying a new plan can be a really difficult process. Insurance companies in India inspect the vehicle again and the vehicle owner also has to complete the whole process one more time, including paperwork.
Most people find it inconvenient to complete the procedure of getting their two-wheelers inspected in case the policy has lapsed. This insurance accounts for hardly 12 percent of the total premium of vechile insurance
Insurers get a chance to increase premium income through the high lapse rate. Few insurers such as HDFC Ergo and Bajaj Allianz General Insurance have started various schemes which allow motorbike owners to get their vehicles covered online without any physical inspection.
Though, the insurer is exposed to a specific level of risk, the final decision to waive the pre-inspection in case of online renewal of lapsed two-wheeler policy to promote two-wheeler insurance in India. Once you decide to purchase a two-wheeler policy India for a vehicle after a break, and then carefully read the fine print of a policy.
Policyholders should know that the coverage may not begin immediately. If the two-wheeler is being covered online without inspection, the risk inception date begins three days from the date of issuance of the insurance.