All About Cancelling a Two-wheeler Policy

Learn more about cancellation policies of two-wheeler insurances and make an informed decision before policy cancellation.

“Please read the offer documents carefully before investing” is a standard statement we are assured with during insurance advertisements But, after so many awareness attempts, not everyone reads the terms and conditions in detail. This is because the content mostly contains insurance and policy jargons with much legality included. Among these, many two-wheeler owners find it hard to understand the procedure to cancel their two-wheeler insurance policy. Read on to know more if you are one of them.

Insurance policies are usually valid for a period of 1 year. You could consider cancellation within this period for a variety of reasons that could be both personal or dissatisfaction with the level of service being provided. With competition arising among companies, it only makes sense to pick a policy that reaps maximum benefits for you.

The cancellation policy for two-wheeler insurances is simplified as follows:

• Policy cancellation can be done if you haven’t made any claim with the insurer during the policy term.
• You must have an alternative; it is essential for you to have complete information about the next 2 wheeler insurance policy you are looking at to buy. Supporting documents for it needs to be produced.
• If an ownership transfer is a reason you need to annul your policy, you would need to provide all the necessary supporting documents of an alternative insurance provider.
• Basic cancellation fees apply. Every insurance policy company will have certain cancellation fees that may be stated on the terms and conditions. This fees will be deducted from the premium paid.

The cancellation procedure for two-wheeler insurance is simplified as follows:

1.     It is important for you to call and inform your insurer as soon as you have decided to cancel your existing policy.

2.     Post this, immediately give a writing intimation about your intentions to switch over to another policy. This needs to be done within 7 business days.

3.     It is mandatory to submit proof of being insured with a new insurer to the old insurer. It would be ideal to mail the paperwork or courier a copy to the insurer.

4.     Cancellation fees, a minimum of Rs.25, will be charged. The balance amount, which is pending to be received from the current insurer, will be refunded to you on a pro-rata basis based on your insurance cycle.

In conclusion, learn in detail about the new insurance plan, premium rates, features of the policy, etc. Make sure you have some substantial reasons to switch before you decide to cancel your existing policy. Do not make premium rates the only deciding factor when it comes to switching your policy; it is beneficial to look at many aspects involved in choosing the best policy for your two-wheeler vehicle and your own financial needs.

[Source: https://www.symboinsurance.com/blogs/two-wheeler-insurance/cancelling-two-wheeler-policy/]