When you buy a two wheeler insurance policy, it would have a due date. This would be one/three/five years from the effective date of the policy. The duration depends on the type of policy you bought. It is important to renew the policy or buy a new policy before the due date. If you fail to do this, then your policy lapses.

Some people consider insurance an unnecessary expense. This is why they do not bother about renewing the policy. Many others would like to renew but forget to do so, thanks to busy work schedules. If your policy is not renewed, then it lapses. If you continue to drive with lapsed bike insurance, then it is a serious issue.

You can understand the impact of riding a bike with a lapsed 2 wheeler insurance by going through the following:

When you buy insurance, idv in insurance (insured declared value) represents the coverage for your bike. The premium you pay is based on the IDV. All your coverage would lapse the moment your policy lapses. All the money you spent on the insurance goes for waste when you allow the insurance to lapse.

Driving with lapsed bike insurance is against the law. The Motor Vehicles Act makes it mandatory to have insurance (at least third party coverage) for your vehicle. If you are stopped by the police/RTO, then the fact that you are not insured will be considered a serious offense. Your vehicle can be seized, you can be imposed a penalty, and you may even face legal action. This is a key reason why you need to ensure your insurance does not lapse.

If you meet with an accident and someone else is injured or property belonging to a third party is damaged, then you are liable for legal action. If you are insured, then the insurer will handle this risk. If your policy has lapsed, then you need to manage the risk and may face criminal/civil action.

If your vehicle is stolen, then your insurance policy will help you cover the losses. If your policy has lapsed and your vehicle is stolen, then you will not get a single paisa. The entire loss has to be borne by you, which can be very expensive.

An accident to your vehicle or damages caused by manmade hazards or natural disasters will be expensive. You need to spend a lot of money to repair it. If your policy has lapsed, the insurer will not pay you and this will hurt your finances.

If you do not renew your policy 90 days after the due date, you will lose any no claim bonus you have. This will increase the premium you pay next time.

The above points would have helped you understand the impact of driving your bike when your insurance has lapsed. Ensure that you renew the insurance well before time to avoid these problems.