Planning to Cancel Your Motorbike Insurance Policy? Here’s what you need to know
It is a necessity to have motorbike insurance when you own and drive a two-wheeler in India. The Motor Vehicles Act makes all vehicle owners insure their two-wheelers and four-wheelers. Although motorbike insurance is very important, a time may come when you want to cancel your existing policy. Here’s what you need to understand when planning to cancel your motorbike insurance policy.
Cancelling a Policy Midway
Many people think that you have to wait for an existing policy to expire before cancelling it. This does not hold true as you can cancel one midway. You need to keep in mind that:
- The insured owner, that is you, has made the required arrangements for alternate coverage. You need to be certain of this so that at least third party liability can be covered. Documentary evidence that states this to be correct should be produced for the same.
- The existing cover can be cancelled provided there are no withstanding claims on the vehicle that is insured during the current policy term.
- Your present policy cannot be annulled, in situations of ownership transfer until you produce the required documentation as evidence to support the fact that alternative arrangements are made to support the insurance cover.
You Can’t Avail the No Claim Bonus
Although you can terminate an insurance policy before the year is up, you won’t be able to avail the ‘No Claim Bonus’ for the particular period. This move can have financial repercussions especially when you apply for a policy through another motorbike insurer. It can get particularly costly for you, depending upon your no claim history.
Protection and Breakdown Covers
If your motorbike policy comprises of any kind of extra protection such as a breakdown cover, it will automatically get terminated and you can’t demand a refund for the same. In this case you have to wave goodbye to the money you spend on these covers. It is best to think about this aspect carefully, before deciding to cancel your motorbike insurance policy midway.
Cancelling the Policy
To cancel your motorbike insurance policy, you have to:
- Get in touch with your insurer, that is by phone or mail and specifically state that you want to cancel your policy.
- A representative will lead you through a procedure. Follow it and be certain to notify your existing insurance company in writing at least seven days prior to the cancellation.
- Make sure you have the necessary documentation ready such as the document that proves you purchased a policy with another insurer.
Check and Compare the Various Advantages
If you are planning to switch your motorbike insurance policy, you need to conduct a thorough check on the other insurers and their premium rates as well as other benefits. Compare and contrast all advantages and features before coming to a decision.
Be mindful and observant before you decide to cancel your motorbike insurance policy. Only when you consider all of the above factors and are confident this is the right decision, should you go ahead with it.