The bike you have aspired for is finally yours. Next, you obviously want everything to be properly set as you start riding your mean machine. Besides the features on the bike, the most important priority is a bike insurance policy. You obviously know how to take a two wheeler insurance policy.
Do you know what the cancellation of a policy is? Well, cancellation of your bike insurance is also important under certain conditions. Here we will see the situations under which a policy may be cancelled and how to do it effectively.
Why Should You Cancel Your Bike Insurance?
Before you know the steps to cancel your bike insurance, it is important to understand why you have to do it. Here are a few reasons:
- Planning to get a new vehicle: With a rise in your standard of living, you might opt for purchasing a new vehicle. In that case, there is no point in holding the current two-wheeler vehicle you possess. When you look for options to sell it, cancellation of your insurance becomes prominent as you will no longer be the owner. You can choose to transfer the insurance in the new owner’s name, subject to their acceptance.
- Bike theft: Losing your bike causes extreme mental stress. When you no longer have the bike with you, you do not have to hold the insurance policy. You can inform the insurance provider regarding the bike theft and make the necessary claim. Based on the insurer’s policy terms, they might ask you for the FIR and proceed with the claim and later on cancel the policy too.
- Switching to a new insurer: You might also be thinking of shifting to a new insurer due to unsatisfactory customer service or that you have found a better plan that is cost-effective with varied features and benefits. In that case, cancelling the current insurance policy becomes crucial. You can either wait until two wheeler insurance renewal for the current policy and make the shift or do it during the policy term in case of urgency. You can compare different policies and evaluate the benefits using a bike insurance calculator.
- Other reasons: There may be other reasons that could lead you to cancel a policy. For example, you might opt for a policy when your friend makes a suggestion. But, before the policy term starts, you change your mind and want to go for an option you had decided earlier.
Steps to Cancel the Bike Insurance Policy
Now let us see how to cancel a bike insurance policy. Unlike the traditional companies, new insurance companies in India have an online process that eases the whole procedure.
- Inform the insurer: You must inform your insurance provider regarding your wish to cancel your policy through a phone call or by email with the appropriate reason.
- Share the documents: Based on your cancellation request, the insurer might ask you to submit the necessary documents. For example, you should submit the FIR in case of theft, a copy of the new insurance policy if you are changing the insurer or transferring the ownership in case of selling your bike. The documents required might vary among different insurers but basically, they are meant to show a valid reason and proof for proceeding with the cancellation.
- Verification: The insurance company will proceed with the verification process and may contact you regarding any clarifications.
- Refund: Upon successful verification, the insurer will cancel the policy and initiate the refund process. If the verification is unsuccessful, the insurer might ask for further supportive documents or let you know the next steps.
Opt for leading insurers like TATA AIG bike insurance that offer efficient and quick cancellation and refund processes.
The insurer will initiate the refund process based on a valid reason for cancellation and also if you have submitted the necessary documents promptly. However, a successful cancellation does not approve a complete refund. Here are a few pointers that explain the reasons:
- If you cancel the policy before the policy’s start date, you will get almost a full refund with a deduction of just the marginal cost included for operational processes.
- If you have cancelled the policy after the start date and made any claims, the insurer will refund based on the premium to be collected on a pro-rata basis. It will also account for the coverage provided throughout the policy term.
- The refund of the assured amount will take place generally within two weeks after successful verification.
The cancellation of a bike insurance policy is also an important aspect considering the situations you might encounter in future. For instance, you might sell your vehicle, change your insurer, or lost your bike so you need to cancel your two-wheeler insurance.
Therefore, it is necessary to understand the steps and coordinate with your insurance provider to handle the situation. Ensure to inform the insurance provider promptly and submit the necessary documents for a successful cancellation and, more importantly, the refund