To cancel motorcycle insurance, you need to contact your insurance provider and follow their specific cancellation procedures.
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Reasons for Cancelling Motorcycle Insurance
Here are some common reasons for canceling your two-wheeler insurance policy:
1. Selling your bike: If you’ve sold your bike or scooter, canceling the insurance policy is necessary. Alternatively, you can transfer the policy to the new owner. Inform your insurer of your decision and follow the required procedure for a smooth process.
2. Bike theft: In case of bike theft where the police cannot recover the vehicle, canceling the bike insurance policy is necessary. Inform your insurer and provide the required documents such as the First Information Report (FIR), Non-traceable Report, and others. Note that comprehensive bike insurance is needed to claim for theft.
3. Switching to a new insurer: It’s mandatory to have bike insurance, so if you’re switching to a new insurance company for various reasons such as dissatisfaction or better pricing, submit the new policy’s copy (Third-party Bike Insurance at minimum) to your previous insurer for cancellation.
Process for Cancelling Motorcycle Insurance
If you’ve made your decision and are now looking to cancel a bike insurance policy, here’s a step-by-step guide to help you through the process:
1) Notify your insurer about the cancellation. You can do this by submitting a written application along with your policy details and reason for cancellation, along with any necessary documentary evidence (via email or post), or by contacting them directly through their customer care number. Many insurers now offer a dedicated policy cancellation page on their official websites to streamline this process.
2) Depending on the reason for cancellation, your insurer may require specific documentary proof such as an FIR for a stolen bike or proof of sale if you’ve sold the bike. These documents must be submitted within the timeline provided by your insurer.
3) If you wish to cancel the policy but still own the bike, your insurer may ask for a copy of the new insurance policy you’ve purchased. This ensures that the bike maintains continuous coverage, as third-party insurance is mandatory for all vehicles in India.
4) After you’ve submitted all required documents, the insurance company will review them and request any additional supporting proof if necessary.
5) Once your insurer confirms satisfaction with the documentation, they will approve the policy cancellation. This process typically takes up to 2 weeks from the initial notification of cancellation to completion.
Repercussions of Canceling your Motorcycle Insurance
Here are some of the outcomes of canceling your motor policy:
1) Lack of Insurance Coverage: Continuing to use your vehicle post-cancellation exposes you to potential fines from law enforcement and full financial responsibility in case of accidents, including any third-party damages and bodily injuries if you are deemed responsible.
2) Additional Inconvenience Due to Lapsed Coverage: If you cancel your insurance without obtaining a new policy for an extended period, certain insurers may require you to bring your vehicle in for inspection before approving a new policy. Additionally, you may face increased premiums from some insurers.
3) No NCD Progression: Canceling your insurance prematurely means your No Claim Discount (NCD) will not advance to the next level as expected.
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