The importance of two-wheeler insurance can't be questioned at all. For a vehicle that is considered to be the medium of mobility for the middle class, it is important that its owners/riders are protected against the risk of any unforeseen financial losses arising due to a natural or manmade mishap.
In fact, third-party insurance that covers liabilities in case of an accident involving your vehicle is mandatory for all two-wheelers plying on Indian roads.So, driving any vehicle without this type of insurance is anyway out of question since it is a punishable offence.
Despite its importance, there can be certain situations where you may think of cancelling your bike insurance policy. Can that be done? If yes, how? Let's take a look at the answer to these questions.
Can I cancel my bike insurance policy?
Yes. You can cancel bike insurance anytime during the policy period. The simplest way to cancel a policy is to wait for its tenure to get over and then just not renew it. This would not require any kind of application, forms or formalities. But if you cannot wait till the end of the policy tenure, then you can initiate the process of policy cancellation by informing your insurer and completing the paperwork and formalities as advised.
When you cancel the policy, refunds are calculated by insurers on a pro-rata basis. They will usually calculate the time on cover since the policy was last set up or renewed, and divide the premium paid to them by the number of days on cover. The remainder is the pro-rata premium which would be provided as a refund. However, in case you have already raised a claim during the policy period,then probably you won’t be able to cancel your two-wheeler insurance policy at all.
Reasons to cancel bike insurance
There can be different kinds of situations you may face due to which you may have to cancel your bike insurance policy. Some of them are mentioned as under:
If your bike is stolen and can't be retraced, there is no point paying premiums for its insurance. You can simply inform the insurer about the theft, provide supporting documents (like FIR etc.) and get the policy cancelled. If you have bought a comprehensive insurance policy that covers your bike against the risk of theft/total loss, then you can raise a claim. Once the claim is settled, your insurer would automatically cancel the policy.
Bike sold to someone else:
If you have sold your insured bike to someone else, then you can either transfer the policy to the new owner's name, or you can simply get the policy cancelled by informing your insurer about the sale of your vehicle. Remember not to let anyone else own or ride a bike that has its insurance in your name as it may land you in trouble if the vehicle gets involved in any mishap.
Not happy with the insurer's services:
If you are not satisfied with the services being provided by your current insurer, then you can cancel the policy and switch to a new insurer. But it is advisable that since this is not an urgent scenario, you simply wait for the current policy period to end and buy a new policy with the insurer you want.
Better prices or benefits available with some other plan:
This is one of the most common reasons for people wanting to cancel their bike insurance policy. You may find a better plan with added benefits at the same rate of premium you are paying, or maybe even less. And then you may want to make a shift in order to save money. But remember that always study the fine print of the policy before taking a decision to spot any hidden costs. Once you are completely sure, then only initiate the process of policy cancellation.
How to cancel a two-wheeler insurance policy?
If you are sure of your decision and are now wondering how to cancel a bike insurance policy, here’s a small step-by-step guide to complete the process. Though, it is important to note that exact procedure may differ from insurer to insurer and you may have to contact your insurance provider to know further details. Take a look:
1) Inform your insurer about the policy cancellation. You can do that either by writing an application with your policy details and reason for cancellation and then submitting it to your insurer with documentary proofs (either through email or post), or by simply calling them on their customer care number and getting in touch with their representative. Many insurers nowadays have a dedicated policy cancellation page on their official portals as well in order to make the process simpler for policyholders.
2) Depending on the reason for cancellation, your insurer may ask you for relevant documentary proof. For instance, FIR in case your bike is stolen, or proof of sale if you have sold the bike, etc. You will have to submit these documents as per the timeline suggested by the insurer.
3) In case you want to cancel the policy but you still own the bike, your insurer may ask you to submit a copy of the new insurance policy you have purchased. This is to ensure that the bike is under some sort of coverage as third-party insurance is mandatory in India for all vehicles.
4) Once you have submitted all the documents, the insurance company will verify them and inform you in case they need any more supporting proof.
5) Once your insurer is satisfied with the papers, your policy cancellation would be approved. Usually, this process takes up to 2 weeks after you first inform the insurer about the cancellation.Disclaimer: The above information is indicative in nature. For more details on the risk factor,terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.