Bike insurance is a financial protection that secures your bike from unseen damages. Despite its importance, there can be several reasons to cancel your policy. For example, switching insurers, upgrading plans, or the theft of your bike.
You may need a proper guide to understand the process of canceling your bike insurance, submitting the necessary documents, understanding the conditions, and getting the right refund amount from the insurer. Here’s how to do so.
Why to Cancel Bike Insurance?
Multiple reasons lead to the cancellation of bike insurance. Some of them are as follows:
- Theft of the bike
- Switching to another insurer
- Unsatisfied services of the existing insurer
- Re-sale of bike
Documents You Need for Cancellation
Different documents are required for different valid reasons at the time of the cancellation of bike insurance. Let us understand it briefly:
| Reason for Cancellation of Bike Insurance | Document required for Cancellation |
| Bike got stolen | Non-traceable report, copy of FIR report, and other supporting documents |
| Sale or transfer of the bike | Sale deed or Form-29 of RTO (Regional Transport Officer) |
| Changing the insurer | Proof of new bike insurance policy |
Conditions to Cancel a Bike Insurance Policy
You need to fulfill certain conditions to cancel your Bike Insurance. If you are about to cancel your policy, you should follow the given conditions:
- There should be no prior claims made in your insurance policy tenure. Insurers prefer a policy with no claims made in the past.
- If you are switching insurers, you must have proof of new third-party insurance for your existing bike. Third-party insurance is mandatory for bikes.
- In case you sell your bike, do not cancel the existing policy unless you get proof of another insurance plan from the new owner.
Steps to Cancel the Bike Insurance Plan
After understanding the reasons and conditions for bike insurance cancellation. You may want to know the steps to cancel your bike insurance plan. Here are the steps that you can consider for the same:
Step-1
Firstly, inform your insurer about the bike cancellation plan. You can easily get the executive contact details from the mobile app or official website of the insurance company.
Step-2
To proceed with cancellation, send an e-mail to the insurer. The mail contains details about the cancellation and required documents.
Some insurers have a separate webpage to perform the complete policy cancellation process, from application to refund issues.
Step-3
After the completion of the process, you will get a Certificate of Insurance (COI). This certificate acts as proof of cancellation of your policy and contains the following:
- Details of the cancelled policy
- NCB (No Claim Bonus) amount till date, if any.
Step-4
Cancellation of bike insurance does not guarantee any refund. But, with proper steps, document submission, and a valid reason, you can become eligible for repayment.
You will get a refund of your premium amount based on the following:
- Terms and conditions of the insurers
- Time for which the policy was active
In case you cancel the policy before starting the tenure, you are eligible to get a full refund (after deducting administration costs). Any cancellation after the start date will lead to a refund on a pro-rata basis.
Conclusion
Cancellation of bike insurance is not a complex process. If you are aware of the reason, condition, steps, and have the required document for cancellation, the process becomes easier. At the time of sale of the bike, shifting insurer, and theft of bike, just go with the right documents and follow the required steps mentioned in this blog.
If you want any further help from us, feel free to contact us to get a hassle-free experience.
FAQs – About Canceling Your Two-Wheeler Insurance
What documents do I need to cancel my bike insurance policy?
The requirement of documents depends upon the reason behind the cancellation of the insurance policy. You must have proof of sale, purchase of a new policy, or theft of a bike.
Is it possible to cancel bike insurance online?
Yes, many insurance companies have an online setup for bike insurance cancellation. You can reach their website, application, or call customer executives.
Can I cancel the bike insurance after selling my bike?
Yes, reselling the bike is one of the valid reasons for bike insurance cancellation. You have to submit proof of sale (Sale deed or Form-29 of RTO) to cancel the policy.
Will I get a refund for my bike insurance cancellation?
Yes, you can get a refund for your policy, which depends on the time for which your policy is active and the regulations of the company.