How To Cancel A Bike Insurance Policy And Get A Refund?

Getting a bike insurance cancellation from your insurer is entirely possible. Many people think their policy can not be cancelled once the policy term starts, but that is not true. Your policy can be cancelled at any time, before or even after the policy term commences.

There are a few conditions that need to be satisfied to get a bike insurance cancellation:

• Your bike insurance can only be annulled if you have a valid reason, and the insurer can reject your cancellation application if you do not provide a proper reason for cancellation.

• You must have an alternative insurance plan prepared to replace the policy you are cancelling. It must at least be a basic third-party cover, and you must produce supporting documents to provide proof to the insurer.

• In case of an ownership transfer of your vehicle, your policy can only be cancelled after you provide documentary proof of alternative arrangements, i.e., an alternative bike insurance policy.

The main takeaway is that you cannot cancel your bike insurance if you do not have an alternative bike insurance policy. Your vehicle must always be covered against liabilities.

In addition to the criteria mentioned above, you must also state why you want to cancel your bike insurance policy.

- You Are Selling Your Bike: If you are selling your bike and need to cancel or transfer the bike insurance policy to the new owner, you must inform your insurer. After which, you will need to follow the required procedure provided by them.

- Your Bike Was Stolen: If your bike was stolen and you can not track it down, you must cancel your bike insurance policy. First, you must inform your insurer of this and provide documents like the FIR, the Non-Tracebale Report and other supporting documents. Note that you can only raise a claim for bike theft if you have comprehensive insurance for your 2-wheeler.

- Switching To Another Insurer: All bike owners must have at least a basic third-party bike insurance policy in India, according to the Motor Vehicles Act. Suppose you are switching to a different insurer. In that case, you must provide documentary proof of the new insurance policy to your current insurer during the bike insurance cancellation process.

- Contact Your Insurer: Most insurers will require you to speak with an insurance agent through their customer care helpline or by email to cancel your bike insurance.

- Mail Your Cancellation: Some more traditional insurance companies/providers may insist that you go the old-fashioned route and hand in a written cancellation letter to their office or agent.

- Visit The Office: You can also visit the insurance provider’s office directly to get your bike insurance policy cancelled in person.

The bike insurance cancellation process may differ among insurance providers. However, most online providers generally have a “Cancel” or “Edit Policy” option on their site once you log in to your account. You simply need to:

Visit your insurance provider’s official website.

Log in to your account and select your policy card against your insured vehicle.

Click on the “Cancel” or “Edit Policy” option.

For example, if you want to cancel your Tata AIG bike insurance policy, you must contact us through our helpline or by email, found here. The process will generally take up to 7 - 15 days, and you will be guided through it by one of our insurance agents.

Here are the documents you will need to produce when you cancel your bike insurance:

• Your insurance cancellation application form/letter/email to your insurer about your bike insurance cancellation.

• Sale Deed or Form 29 from the Regional Transport Office (RTO) if you sell the bike.

• Copy of the new bike insurance policy if you are switching providers.

• FIR and Non-Tracebale Report if your bike was stolen.

Yes, it is possible to get a refund after cancelling your bike insurance policy. You should note that a bike insurance refund process is independent of your bike insurance cancellation process, i.e. they are considered separate processes.

A cancellation does not guarantee a refund, and a refund is only initiated after a strict verification process. Generally, if you have a valid reason for cancellation and all your documents are in order, you will not face any difficulties with this process.

The bike insurance refund is generally calculated on a pro-rata basis (distributed in equal proportions) and is assessed case-by-case. Additionally, if you have a history of claims, your refund process can take a little longer. There are usually two main scenarios regarding refunds:

- Cancelling Before Your Policy Starts: If you cancel your bike insurance before the policy starts, you can enjoy a full 100% refund - except for a nominal cost for the operational activities.

- Cancelling After Your Policy Starts: If you cancel the insurance for your 2-wheeler after the policy starts, you will get refunded on a pro-rata basis. This is because the insurance provider has offered a specific amount of coverage from the start of your policy up to your cancellation date.

Here is a table providing the generic calculation of the premium percentage you will be refunded when you cancel your bike insurance after policy commencement.

It is generally only advised to cancel your bike insurance policy if your bike was stolen or you plan to sell your vehicle. This is because most insurance companies will have set processes in place for these scenarios. You should carefully review the terms and compare two-wheeler insurance plans — their features and exclusions — before you purchase insurance for your 2-wheeler.