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Disclaimer:Tata Capital Limited (“TCL”) registered with IRDAI (License No. CA0896, valid till 21-Jan-2027), acts as a Corporate Agent “Composite” for Go Digit General Insurance Limited. Please note that, TCL does not underwrite the risk or act as an insurer. For more details on the risk factors, terms and conditions please read sales brochure carefully of the Insurance Company before concluding the sale. Participation to buy insurance is purely voluntary.

The Registered office of TCL is Tata Capital Limited, 11th Floor, Tower A, Peninsula Business Park, Ganpatrao Kadam, Marg, Lower Parel, Mumbai-400013.
The Registered Office of Go Digit: Go Digit General Insurance Limited, 1st Floor, Fairmont, Hiranandani Business Park, Powai, Mumbai – 400076.
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What is Bike Insurance Break-in Period During Renewal?

What is the Break-in Period in Bike Insurance Renewal?

What is the Break-in Period in Bike Insurance Renewal?

The break-in period in bike insurance is the time between the expiry of the old policy and the moment the new policy is renewed. During this span, your bike is uninsured; you cannot claim anything for eventual damages, accident, or theft. 

Most companies offer grace periods ranging from 30 to 90 days during which the policyholder can renew their insurance without losing certain benefits.

For example, if your policy expires on April 20th and you renew it on May 10th, the 20-day gap is your break-in period. Though insurance companies may permit the extension of the scope of the insurance policy expiration dates, the bike will be left without financial protection.

To avoid unnecessary trouble, it's best to renew your policy before it expires. If the break-in period ends, your insurer may require a vehicle inspection before issuing a new policy, and your premium may increase. Staying on top of your renewals ensures continuous coverage and prevents extra costs.

Purpose of the Break-in Period in Two-Wheeler Insurance Renewal

Purpose of the Break-in Period in Two-Wheeler Insurance Renewal

The break-in period allows the policyholders a certain period to renew their lapsed insurance policy. 

  • If a bike insurance policy is not renewed on or before the expiration date, the break-in period allows owners to restore coverage without changing policies.
  • The insurer makes it possible to look at the risk associated with the renewal, sometimes requiring an inspection before a new policy can be issued to ensure that the bike has not been involved in an accident when it was not covered. 
  • In addition, the break-in period allows bike owners to act quickly to renew or insure their bikes, lest they see themselves cruising the roads without valid insurance. 

Benefits of the Break-in Period in Bike Insurance

The break-in period brings with it a lot of benefits, too, among which are

Financial Losses Protection

Financial Losses Protection

The break-in period allows you to renew your policy fast before facing financial risk. If those unfortunate moments arise when you crash your car and your insurance expires, you must pay for the damages out of your pocket.

NCB Retention

NCB Retention

If you renew your policy within 90 days of its expiry, you can retain your No Claim Bonus in bike insurance. This bonus gives you a discount on your premium, making your following policy more affordable. If you miss this window, you lose your accumulated NCB benefits.

Peace of Mind

Peace of Mind

The break-in period is like an assurance for you as it gives you ample time to arrange your finances and renew your policy without any stress. It safeguards you from losing out on any insurance benefits you may be entitled to because you missed renewing.

Quick and Easy Policy Renewal

Quick and Easy Policy Renewal

Renewing your insurance during the break-in period, especially online, is easy, quick, and time-saving. Many companies can activate a new policy easily, with certain documentation required.

No Immediate Vehicle Inspection

No Immediate Vehicle Inspection

Renewal of bike insurance during the break-in period does not require a vehicle inspection. This will save you time and money yet again, as inspections are another possible burden. 

Avoid Penalties

Avoid Penalties

Riding an invalid motor insurance is a crime in India, leading to possible penalties and even legal action. Insurance renewal within the break-in period will free you from violating the law.

Effects of Breakage of Two-Wheeler Insurance Break-in Period

No Financial Protection

Third-Party Liability Risks

Loss of NCB

Break-in Inspection

Higher Renewal Premiums

No Personal Accidents Coverage

Under the Motor Vehicles Act 1988, riding without at least third-party insurance coverage is an offence in India. If caught red-handed, the rider could face severe penalties, charges, and even imprisonment.
If your bike is stolen or damaged in an accident during the no-claim period, you must pay off all expenses. Since the policy is suspended, the company will not be liable for any repairs or losses.
If you cause an accident that results in injury or property damage to a third party, you will have to pay for their medical bills or repairs out of your pocket. This can lead to a substantial financial burden.
If you do not renew your policy within 90 days of expiry, you lose any accumulated NCB discounts. This means you will pay a higher premium when buying a new policy than you would have paid.
Some insurers may demand a vehicle inspection before renewing a lapsed policy. This adds extra cost and delays the process, making renewal more complicated than a regular renewal.
If your policy lapses beyond the break-in period, you may have to buy a new policy at a higher premium. Insurers consider a break in coverage a risk factor, which can lead to increased premium costs.
If you suffer injuries in an accident, your inactive policy will not cover medical expenses or offer any compensation. This can lead to unexpected medical costs and financial strain.

How to Avoid Issues During Bike Insurance Break-in Period?

Break-in Period for New Two-Wheeler Insurance vs Renewal

The break-in period differs in the case of new policies and renewals for bike insurance. For new two-wheeler insurance, specify conditions for activation, renewal, break-in periods related to the policy's continuity and retention of benefits. The table below shows the differences between the two:

Factor Break-in Period for New Two-Wheeler Insurance Break-in Period for Renewal
Definition The time before a new insurance policy becomes active. The gap between policy expiry and renewal.
Legal Status There are no repercussions for riding during this period, as the vehicle is still not covered by liability insurance. Riding during this period is illegal and may carry a penalty.
Financial Coverage The waiting period has no coverage whatsoever.  There is no coverage until the policy is renewed.
No-Claim Bonus (NCB) Not applicable, as there is no previous policy. If not renewed within 90 days, NCB is lost.
Inspection Requirement Usually, no inspection is needed for a new vehicle. Some insurance providers ask for a vehicle check-up before renewing their policy.
Premium Impact Standard premium rates will apply depending on the selection made under the policy. Delay in renewal may lead to higher premiums due to risk factors.
Risk Factor No risk, as the vehicle is not yet in use. High risk, as the bike remains uninsured during this period.
Recommended Action Ensure the policy starts on the date of vehicle purchase. Renew before expiry to avoid legal and financial risks.

What Happens After the Break-in Period Ends?

Loss of NCB

Fresh Policy Purchase

Higher Insurance Premiums

Mandatory Vehicle Inspection

If you do not renew your policy in the 90-day grace period following the expiry of your policy, you will lose the No-Claim Bonus you could have earned. This means higher premiums when purchasing a new policy.
Once the break-in period ends, you can no longer renew your old insurance policy. You must buy a new policy, which may require additional verification and inspection of your bike.
Because the policy expires, the premium for a new policy could be significantly higher because it is more expensive to insure older bikes, and depreciation may raise the premium amount further.
Most insurers will also require a physical inspection before writing a new motorcycle policy, which is essential for vehicle registration.
What is Impact on Premiums and Coverage During Break-in Period?

What is the Impact on Premiums and Coverage During Break-in Period?

Failing to pay your motorcycle insurance on time can lead to penalties, especially if it's not your first lapse. With each interruption, there is the possibility of losing discounts and benefits, including items like the No-Claim Bonus, and failing to acquire it means even costlier renewals will await.

In addition, the insurance company might ask you for a fresh vehicle appraisal to issue the new policy. If your bike has any damage, it might push premiums to new levels, or limited coverage options may result. Other insurers offer fewer concessions, which makes getting full coverage at a reasonable price harder.

Moreover, your new policy shall not cover accident or theft-related incidents during the break-in period. You will be solely responsible for any repairs or replacements. Such situations can be avoided if the renewal process starts before the expiration of the break-in period. This way, your coverage won't be disrupted, reducing your premium cost. 

Common Misconceptions About Break-in Periods in Bike Insurance

Many bike owners misunderstand the insurance break-in period. While some people believe they are safe under the insurance even during the break-in period, others think the renewal process is always easy. The table below will clear up the confusion:       

Misconception Reality
You are covered during the break-in period. Your insurance remains inactive until the renewal is completed, leaving you without coverage.
Riding without insurance during the break-in period won't lead to legal trouble. Riding without valid insurance is illegal in India and can result in fines or legal action.
You can renew your policy at any time without consequences. The insurer may refuse renewal if the break-in period exceeds the allowed time.
No-Claim Bonus (NCB) remains intact forever. No claim bonus will be retained, provided the policy is renewed within 90 days. After this period, you will lose the accumulated discount.
Renewing after the break-in period is hassle-free. A fresh vehicle inspection may be required, potentially increasing premiums or leading to policy rejection.

Tips for New Riders on Managing Bike Insurnce Break-in Periods

Here are some tips that would help new riders deal well with the break-in period:

Set Renewal Reminders

Set Renewal Reminders

It's advisable to mark the renewal date of your insurance on your calendar or set a reminder on your cell phone.

Renew Policy Before Expiry

Renew Policy Before Expiry

Consider maintaining coverage by early renewal. Thus, it's always better to renew well before the expiry date.

Check Grace Period

Check Grace Period

Some insurers guarantee a short grace period after the policy term expires; remain aware of such conditions.

Avoid Riding Without Insurance

Avoid Riding Without Insurance

Riding during the break-in period is illegal and can lead to penalties, fines, or even legal trouble in case of an accident.

Understand NCB Rules

Understand NCB Rules

By renewing within 90 days of expiry, the NCB is applied to your coverage, bringing down your premium.

Choose Online Renewal

Choose Online Renewal

Online insurance renewal is quick, straightforward, and less time-consuming.

Compare Plans If Switching

Compare Plans If Switching

If you switch insurance providers when renewing, compare plans for the best coverage and benefits.

Use Customer Support

Use Customer Support

If you're unsure about renewal steps or break-in period rules, contact your insurance provider for guidance.

FAQs about Break-in Period in Bike Insurance

Manasvi Gupta

Written By:

Manasvi Gupta

Manasvi Gupta

Manasvi Gupta

Content Writer

Storyteller at heart, Manasvi brings 4 years of content and marketing experience to Digit. Whether it's writing SEO-optimised articles or a researched and insightful blog, she strives to transform ideas into creating impactful and engaging content.

mayur-black-white-test

Reviewed By:

Mayur Kacholiya

mayur-black-white-test

Mayur Kacholiya

Product Head - Motor

Mayur specializes in motor insurance and is responsible for overseeing the development and management of motor insurance products. With expertise in product strategy and market analysis, he focuses on developing customer-centric insurance solutions.

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