Grace periods in bike insurance plans: What they mean for you

The grace period for two-wheeler insurance refers to the extra time you get to renew your plan after your bike insurance coverage expires. Typically, you should renew the two-wheeler insurance policy before it lapses. However, at times, you fail to do so and your coverage comes to an end, even in the case of your Zurich Kotak Bike insurance plan. Thankfully, the policy is not terminated right away and the insurer offers you a grace period within which you can renew the plan. Read on to know more.

Understanding the grace period for two-wheeler insurance

Every two-wheeler insurance policy comes with a pre-decided policy period. This can range between one year and three years, depending on the nature of your plan. You are obligated to renew the policy before the expiration date in order to enjoy an uninterrupted bike insurance cover. But if you are unable to do so on time, your insurance provider will stop covering your vehicle.

Your bike insurance cover though won't be cancelled immediately. You will get a grace period of about 30 days within which you can renew the plan and continue to enjoy the benefits of your two-wheeler insurance plan.

Advantages of two-wheeler insurance grace period

There are several advantages of the two-wheeler insurance grace period, some of which are:

1. No inspection

If you renew the plan within the grace period, your bike will not be assessed by an inspector and you will be saved a lot of hassle and extra expenses.

2. Price protection

When no inspection takes place, the premium is not hiked, so you get the plan renewed at a much more economical rate.

3. Easy to renew

It is very easy to renew a lapsed plan within the grace period. You simply need to go online, pay the outstanding premium and get the renewal done.

Two-wheeler insurance renewal grace period - Important points to note

While the two-wheeler insurance renewal grace period is a very handy benefit, you need to be aware of some points related to it such as:

1. No coverage during the grace period

You may not get an insurance cover during the policy period. If your bike gets damaged in an accident at this time, you may have to pay for the repairs yourself.

2. NCB can be lost

You stand to lose all your accumulated no-claim bonus if the policy lies in an inactive state for a long time. Hence, allowing the policy to lapse is not the best idea!

3. The tenure may vary

The grace period differs from insurer to insurer. While some offer 15 days, others offer 30 days. Read the policy wording carefully to know what your bike insurance grace period is.

Conclusion

As you can clearly see from the points mentioned above, the two-wheeler insurance grace period is a very handy feature. Use it wisely, if needed. But ideally, you must look to renew your plan on time and not have to use the grace period which is offered by the leading insurer such as Zurich Kotak Bike insurance.

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