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Consequences of Break-in Period in Two-wheeler Insurance Renewal

Nowadays, keeping a track of the multiple payments and due dates has become extremely tough and it is common to forget something or the other. Whenever a payment is made after the due date, a late payment fee or penalty is levied. Like any other payment, late payment or nonpayment is also a big issue when it comes to insurance policies.

If the policy is not renewed on time, there can be various consequences. A break in the insurance policy is not a favorable situation due to legal and financial reasons. A break in the bike insurance policy happens when there is a gap between the expiry and the renewal of the policy.

In case the policy is not renewed in a timely manner, let us discuss the consequences of the break-in period in a bike insurance renewal:

Financial Aspect

A bike insurance policy is taken to avoid any financial burden in case of an accident. In case there is a break in a two-wheeler insurance renewal, and if there is an accident in this period, the insurance company will not pay for any losses. All the expenditure has to be borne by the owner and thus, this creates financial stress.

A break in period means no insurance and thus, it is important to do your bike insurance renewal on time and before expiry to enjoy the benefits of continued coverage.

The Government of India under the Motor Vehicles Act 1988 has made it mandatory for any vehicle owner to have a third-party liability insurance at least. There is a choice to take a comprehensive coverage for a vehicle but third-party cover is compulsory. Thus, if one does not have valid third-party insurance and is found driving on the roads without one, it is considered to be illegal.

If anyone is found driving during a policy break there are monetary penalties levied. Also, if during this phase there is an accident and a third party is injured, there can be imprisonment of the owner/driver apart from legal cases.

No Claim Bonus

NCB or No claim bonus is the discount an insurance company gives to the insured in case no claim is made in a policy period. The NCB can be accumulated and the discount increases for every consecutive no claim year, for five consecutive years. In case the policy is not insured on time, the NCB stays intact for 90 days and lapses after this period. Thus, if one wants their no claim bonus to continue, they should ensure the break is not more than 90 days.


If the insurance policy lapses, a fresh proposal form needs to be filled to renew bike insurance online or offline. In this case, it becomes crucial for the insurance company to do an inspection before issuing a new policy. Insurance companies can reject the proposal for the insurance of a vehicle which has lapsed insurance or can charge a higher premium. It is always advisable to compare two-wheeler insurance before buying, to ensure one gets a good deal with the least possible problems.

Missing bike insurance renewal can have consequences but in case it happens, one should buy bike insurance online instantly. With various options on the internet, buying online two-wheeler insurance is simple and can be done in a few steps. With a click of a mouse, one can compare two-wheeler insurance and buy a policy which suits them the most.  If the time lapse is not long, some insurance companies might not want to inspect the vehicle.

Today, insurance companies send reminders for renewal and one must try to renew bike insurance policy in time and enjoy continued coverage. It is easy to buy and renew online two-wheeler insurance and thus, one must not let the policy lapse and renew it in a timely manner.

Related Content:

Guide to Long-term Third-Party Insurance Cover for Five Years for New Bike Owners

Why is Comprehensive Bike Insurance more Beneficial?