How to Cancel Bike Insurance Policy and Get Refund

Absolutely, you can cancel your bike insurance plan at any time during the policy period. The easiest way is to let the policy run its course and just not renew it - no forms or extra steps are needed. But if you cannot wait until the policy ends, simply contact your insurance provider, which, in this case, is TATA AIG, and follow the required process to cancel it, completing any requested paperwork as advised.

When you cancel your bike insurance policy, insurance companies calculate refunds on a pro-rata basis. They determine the time covered since the two-wheeler policy was last renewed or issued, then divide the premium paid by the number of days covered. The remaining amount is the pro-rata premium, which will be refunded to you.

Nonetheless, if you have already made a claim during the insurance policy period, you likely cannot cancel your bike insurance plan.

Also Read: How to Check Bike Insurance Expiry Date Online?

Sold Your Bike to Someone Else

You have two options if the insured two-wheeler is sold to someone else. You may either transfer the two-wheeler insurance policy policy to the new bike owner's name or request your insurance provider cancel the policy by notifying them about the sale. Ensure that no one rides a bike registered under your insurance, as it could create legal complications if the two-wheeler is involved in an accident.

Bike Theft

If your two-wheeler gets stolen and cannot be recovered, continuing to pay bike insurance premiums becomes unnecessary. Simply notify your insurance company about the theft, submit supporting documents like a First Information Report and request bike policy cancellation. If you have a comprehensive two-wheeler insurance policy that includes total loss or theft coverage, you can file a claim. Once your insurance claim is processed and settled, TATA AIG will automatically cancel your policy.

Also Read: How to File Bike Insurance Claim?

Unhappy with the Insurance Provider’s Services

If you are not happy with the services offered by your current insurance provider, you have the option to cancel the plan and switch to a different provider. However, since this is not an urgent situation, it is recommended to wait until the current bike policy period ends before purchasing a new policy from your preferred insurer.

Switching for Better Prices or Enhanced Benefits

It is probably one of the most sought-after reasons people cancel their two-wheeler insurance policy. You might come across a better plan putting forth additional perks at the same or lower premium rate. In such cases, switching policies can help you save money.

However, read the fine print carefully before you make a decision to identify any hidden expenses. If you are totally confident in your choice, proceed with the bike policy cancellation process.

Also Read: What are the Consequences of Driving without Bike Insurance in India?

Here is a simple step-by-step guide to help you through the process if you have decided and are now thinking about how to cancel your bike insurance policy. However, keep in mind that the exact procedure may vary depending on the insurer. It is always best to get in touch with your insurance provider for specific details.

Step 1: Notify your insurer about the policy cancellation. You can do this by writing an application that includes your policy details and reason for cancellation, then submitting it along with supporting documents via email or post.

Alternatively, call their customer care number and speak with a representative. Many insurers now put forward a dedicated policy cancellation page on their official websites, making the process more convenient for policyholders.

For instance, if you wish to cancel your Tata AIG bike insurance policy, you can reach out via our helpline or email, which is available here. The cancellation process typically takes between 7 and 15 days, during which one of our insurance representatives will assist you through the required steps.

Step 2: You may require relevant supporting documents. For example, a First Information Report if your two-wheeler has been stolen or proof of sale if the bike is sold to someone else. You will need to submit these documents within the timeframe specified by your insurance provider.

Step 3: If you wish to cancel the two-wheeler insurance policy while still owning the bike, you may be required to present a copy of the latest bike insurance plan you have purchased. This is to confirm that the two-wheeler remains insured, as third-party insurance is mandatory for every vehicle in India.

Step 4: After submitting all the required papers, the insurance provider will review them and notify you if any additional proof is needed. Once your insurer verifies and approves the documents, your policy cancellation will be processed. Typically, this takes around two weeks from the time you first notify the insurer about the cancellation.

Remember: Once your two-wheeler insurance policy is cancelled, the insurance provider will send you a COI (Certificate of Insurance). It includes the details of the cancelled bike policy together with the accumulated No Claim Bonus (if any) until the cancellation date. Be sure to issue this certificate to utilise this amassed NCB when buying a new two-wheeler insurance policy.

Also Read: No Claim Bonus in Bike Insurance

Step 5: If you are qualified for a refund, go ahead and request it officially. The refund is usually prorated, so you will get back the amount for the unused policy period. Share your bank or payment details to keep things hassle-free!

Step 6: After wrapping up all the steps, ask your insurer for written confirmation of the cancellation. Make sure it includes the cancellation date and any refund details. Hold on to this confirmation for your records.

• Form No. 29/Sale Deed if the policy cancellation is due to the sale of the bike.

• Non-traceable report, First Information Report and several other supporting documents if the policy cancellation is due to bike theft.

• Copy of the latest bike insurance policy if you have decided to change your insurance provider.

Also Read: Documents Required for New Two-Wheeler Purchase in India

Once the bike insurance policy is cancelled, the next step is to process the premium refund to the customer's account. So, if you wish to know how to go about the steps to cancel bike insurance and get a refund, here are a few scenarios where the refund may be processed differently.

Cancelling the Bike Insurance Policy Before the Start Date

If the bike insurance policy is cancelled before its start date, the insurance company will process a full refund of the premium paid. You will receive the entire amount in your account, as the coverage was never activated. There are no deductions or fees in this case.

Cancelling the Bike Insurance Policy After the Start Date

When a policy is cancelled after the risk start date, the premium is refunded pro-rata. This means you will receive a refund for the unused portion of the policy term. Since your bike was covered until cancellation, the insurer retains the premium for the coverage period.

Note: The refund process typically takes 7 to 14 days to reflect in your account. During this period, keep in touch with your bank to track the status of your refund and ensure there are no delays in the transaction.

Also Read: Why Should You Buy A Two Wheeler Insurance Policy?

Cancelling your bike insurance and getting a refund does not have to be difficult. Follow the steps in this blog to make the process easy. Check your policy, talk to your insurer clearly, and plan your next steps to keep your coverage and get any refunds you qualify for. Whether looking for better rates, enhanced services or a more comprehensive plan, making an informed choice ensures a seamless transition.

With TATA AIG, you can compare two-wheeler insurance plans online and pick the one that you like the most. Our digital-first approach means you can manage your policy anytime, anywhere—because insurance should be as effortless as your ride.

Is there a need to cancel my bike insurance policy if I shift to another state?

This is a common question people consider when relocating. In most situations, cancelling your policy is not necessary. Leading car insurance providers like TATA AIG in India offer coverage across state borders. You might be able to maintain your existing insurance while adjusting your coverage to meet your new location's requirements.

What is a Certificate of Insurance?

A Certificate of Insurance is basically a document that certifies that you have proper insurance coverage for your vehicle. It is issued by an insurance provider or broker.

Can I restart a cancelled bike insurance policy?

When your bike insurance is cancelled, the very first step is to get in touch with your current insurance provider. If the lapse is just a few days, they may be able to reinstate it. However, if a new policy is required, take the time to compare options and find the best rate available.