Can You Cancel Your Two-Wheeler Insurance Policy?

In India, it is legally required to have third-party two-wheeler insurance. All owners are required by the Motor Vehicles Act to obtain third-party bike insurance and ensure one renews bike insurance on time. This also holds for two-wheelers. Government agencies may impose fines and enforce other legal provisions included in the act in the event of non-compliance. Third-party bike insurance should be covered by default under the insurance policy, meaning that basic coverage should consist of damages to third parties’ persons and property brought on by the insured vehicle.

Typically, the policy’s coverage lasts for a year after it begins. For various reasons, the insured policyholder may occasionally terminate the coverage during the policy period. The cause may range from limited terms and coverage to dissatisfaction with the high cost of the premium. Due to the increased competition in the motor insurance market, the customer is frequently enticed to switch to a different insurer with schemes and offers.

Can I Cancel My Two-Wheeler Insurance?

It is possible to cancel the policy both during the policy period and after it expires. Only some people know that the coverage can be withdrawn while the policy is in effect. Most people assume the policy must be in effect for the entire year. There are some restrictions when cancelling a two-wheeler insurance policy, though. They are listed below.

• If no claims are filed on the insured vehicle during the duration of the policy, the coverage cannot be terminated.
• The owner of the insured should have obtained alternative coverage, at the very least for third-party liability, and should have provided documentation to back up the insurance policy.
• If ownership is transferred, the current policy cannot be cancelled unless written documentation of a substitute arrangement supporting the insurance coverage is provided.

In summary, if you do not have alternative insurance coverage, you cannot cancel the two-wheeler insurance policy. The vehicle must always have liability coverage, according to the rule.*

Process Of Cancel Two Wheeler Insurance Policy

The insured owner must give written notice to the insurer of their intention to cancel the policy, giving seven days’ notice.

• Make contact with the insurer—better over the phone—and let them know you want to cancel the policy.
• Observe the process the agent outlines and ensure you give them formal written notice at least seven days beforehand.
• Make sure that any supporting documentation is available, such as the policy document if you purchased a motor insurance policy for your mail or fax it to the specified number or address. You might also be requested to drop off the documentation at the closest branch.
• The insurance company will keep a minimum premium of Rs. 100, and the deadlines will reimburse the remaining amount. Rs. 25 for two-wheelers that are customised or made for vehicles owned by people who are blind, disabled, or mentally ill.

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.