How to Cancel A Two Wheeler Insurance Policy?
Easy Steps to Cancel Two Wheeler Insurance Policy
For every bike owner, to own a bike insurance is a legal requirement in India. However, the extent of policy coverage is subjective based on which insured persons get financial assistance in case of unfortunate bike-related events. But, the policyholders also have the option to cancel their bike insurance policies and get a refund in specific conditions. Just as there is a process to purchase a two-wheeler insurance cover, you must also follow a procedure to cancel a plan which could vary from insurer to insurer.
How to Cancel Two-Wheeler Insurance Policy?
The traditional way to cancel the bike insurance plan is to write an application to the insurance provider to state your wish to get your plan cancelled. The application is required to be supported with relevant and required documents.
But, in this digital age, the cancellation process has been transformed with the introduction of digitally enabled bike insurance companies and has turned faster too. Policyholders can easily initiate the insurance policy cancellation process by just sending an email or by calling the insurance company. Some insurance providers even hold a dedicated webpage for the cancellation of policy and refund process, which functions on automation.
Reasons to Cancel Bike Insurance Policy
The bike insurance policies can be cancelled by policyholders anytime after the purchase. Reasons could be many, but whatever may be, it should be conveyed to your insurance provider in a clear manner. Here are some common reasons for which you can cancel your insurance policy:
1. Selling Your Two-Wheeler
You can cancel your insurance policy if you are selling your bike or scooter. Though, you hold an option to transfer your plan to the new owner too, provided he or she wants to continue with your plan and not choose a new insurance company. However, convey your decision to your insurance company and follow the policy cancellation and refund process.
2. Theft of the Vehicle
Vehicle theft is an unfortunate incident, due to which you could think of cancelling your bike insurance policy by letting your insurance company know about the theft. The insurance provider might ask for the First Information Report and the Non-traceable Report from the police officials. However, with a comprehensive insurance policy, you can raise a claim for bike theft and it is cancelled after getting the claim amount.
3. Shifting to a New Insurance Company
If you are shifting to another insurance provider in between the policy term due to bad service or experience with an existing insurer, in such a situation you can call for the cancellation of your bike insurance policy. For the cancellation process, you will have to share the copy of the new insurance plan with the previous insurance company to confirm that you are covered under a plan as bike insurance coverage is mandatory in our nation.
4. Uncommon Situations
Sometimes, people get themselves into troublesome situations on their own and then cancellation of plans becomes a need. For instance, if someone renews a bike insurance policy from a different insurance company a month before the existing plan’s expiry date. But, before the date of expiry, he changes his mind and wants to continue with the old insurer and wishes to cancel the new plan, which may not become operational.
Steps to Cancel Your Bike Insurance Policy
Here is the process to get your bike insurance policy cancel:
Step 1: Send an email to your insurance company to inform them that you want to cancel the policy. Include your policy number and reason for cancelling in the email.
Step 2: Based on the reason for cancellation, the insurance company will tell you to submit the required documents.
Step 3: The team of the insurance company will verify all your documents.
Step 4: If the verification is unsuccessful, the insurer will intimate you about the same with the reason and further steps to move forward.
Step 5: If the verification gets successful, the insurance provider will cancel the policy and share the refund as per their norms.
Also Read: What is a Bike Insurance Renewal?
Refund Process of the Bike Insurance Policy
Policy cancellation and getting the refund two different things. Although they are interrelated, successful policy cancellation does not guarantee a successful refund. The insurance provider refunds the amount on a pro-rata basis after verification. If any claim is involved, then the refund process could become tedious sometimes. Therefore, here are some crucial points you should know pertaining to the refund process.
1. Cancelling Policy Before the Start of the Policy
Cancelling the bike insurance plan before the start date of policy could give you full refund, however, a marginal cost might get charged for operational purposes. The complete amount of refund is expected as coverage hasn’t begun and the insurer did not face any risks during the period.
2. Cancelling Policy After the Start of the Policy
Cancellation of bike insurance plans after the start of the policy period will get you the refund amount based on the pro-rata basis calculation. The reason is that the firm had provided policy coverage for some period before the request for cancellation was made.
3. Specific Timeline of Refund
No standard refund timeline is being followed by the insurance companies. However, considering all the factors constant, generally the refund is initiated within two weeks.
Types of Bike Insurance You Should Know:
Third Party Two Wheeler Insurance
Comprehensive Two Wheeler Insurance Policy
You May Also Like To Read:
Bike Insurance Details by Registration Number
Fine for Driving Two Wheeler Without Insurance
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
