The Importance of the Grace Period in Two-Wheeler Insurance

It is common to see a lot of two-wheelers on Indian roads, as they help you cover short distances in comfort and without relying on public transport. Two-wheelers are great for congested roads where heavy traffic is a regular thing since bike owners can easily navigate through heavy traffic without any hassles. But on the flipside, two-wheelers are also more prone to accidental damage and theft since, unlike cars, they are not completely covered. One way bike owners can ensure the protection of their bike is through a vehicle insurance policy

Getting a good insurance policy for your two-wheeler is vital. You can visit an insurance provider’s website to check the different plans and the two-wheeler insurance rate they offer. Many bike insurance companies also provide a two-wheeler insurance premium calculator on their websites.

These calculators are beneficial for finding a suitable plan on the basis of your requirements. You will have to provide specific details about the plan, yourself, and your bike, after which the calculator will provide you with the premium quotes. You can also modify the information if you find that certain plans are too expensive or not adequate for you.

A bike insurance policy has a tenure of one year, after which a bike owner can either renew the policy or purchase a new one. When the insurance policy nears its expiry date, the insurance company will start sending the policyholder reminders so they can renew the plan. However, with our fast-paced, hectic lives, important things like these may sometimes slip from our minds, and consequently, we miss out on renewing the policy on time. The insurers understand that policyholders can miss out on the expiry date. Keeping this in mind, insurance companies provide a ‘grace period’.

What is the Grace Period?

Insurance companies introduced the concept of the grace period, which is an extra time frame allotted to the policyholder after the expiry date of the insurance policy. It is extremely beneficial for policyholders who may forget to renew their policy before the expiry date. Getting the insurance policy renewed on time is extremely important, as you cannot drive your bike on Indian roads without a valid vehicle insurance policy.

However, policyholders must understand what the grace period exactly means. The grace period does not keep your insurance coverage intact. Once the policy reaches the expiry date without timely renewal, the policyholder will lose their insurance coverage entirely. However, during the grace period, the policyholder can renew their policy and maintain their No Claim Bonus (NCB) that they have accumulated from the previous year. By renewing your policy in the grace period, you can skip the hassle of having your two-wheeler undergo the entire inspection process again.

What happens to the policy after the expiry date?

If the policyholder hasn’t renewed their plan and the plan has reached the expiry date, they will have to pay a fine for driving their vehicle without a valid insurance policy. There’s also a possibility that the policyholder may land in jail. As per the Motor Vehicles Act (MVA), every two-wheeler owner has to have valid two-wheeler insurance. If not an extensive plan, then there should be a third-party liability cover at the most. Hence, policyholders should get their policy renewed before the policy lapses to be on the safer side.

Bike insurance policies protect the bike owner as well as the bike in the event of an accident. The insurance policy provides the policyholder with monetary support to take care of the repair costs, medical bills, etc., caused by the accident.

Why is the grace period beneficial? 

The grace period is an extension of 90 days after the policy’s expiry date. Some insurance companies provide you with an extended time period to carry out the two-wheeler insurance renewal online. It will help the policyholders get their renewal done without increasing their premium amount or getting the bike inspected.

If the policyholder’s insurance company does not provide a grace period and their bike insurance policy lapses, the insurance company would have to inspect the bike all over again before getting the policy renewed. If you get the two-wheeler insurance renewal done on time, you can save yourself from a tedious and long process.

While the grace period is an extremely beneficial option for policyholders, it is best to get the renewal done on time and avoid dealing with the grace period. To ensure you get the renewal done on time, you can set a reminder 10-15 days before the expiry date. It will help you significantly, as you will get enough time to compare different plans online, review them, make the necessary changes in the existing policy, get the renewal done, or buy a new policy.


It is best if you can get your policy renewed before it expires. However, with the grace period, you not only get more time to renew your policy but can also retain your No Claim Bonus discounts that will help you pay lower premiums in the new policy year.