How to Cancel a Two-Wheeler Insurance Policy

Yes, it is. The policy can be cancelled not only after expiration, but also during the policy period. Not many are aware that the cover can be dissolved during the policy period. The general assumption is the policy has to run through the entire period of one year. However, cancelling the two wheeler insurance policy comes with certain conditions. They are as follows.

1. The cover can only be annulled if there are no claims made on the insured vehicle during the running policy term.
2. The insured owner should have made arrangements for alternate coverage, at least for third party liability and should produce documentary evidence to support the insurance cover.

1. In case of ownership transfer, existing policy cannot be cancelled unless provision of documentary evidence of alternative arrangement is made to support the insurance cover.

The bottom line is, you will not be able to cancel the two wheeler insurance policy if you do not have an alternative insurance cover. The rule is that the vehicle should always be covered against liabilities.

Process to Cancel Two-Wheeler Insurance Policy

The insured owner is required to provide a notice of 7 days to the insurer in writing, of their intention to cancel the policy.

1. Contact the insurer, preferably by phone and express your intention to cancel the policy.
2. Follow the procedure provided by the representative and ensure that you notify them officially in writing, at least 7 days in advance.
3. Ensure availability of documentary evidence like the policy document if you bought an insurance policy for your
4. Mail or fax it to the number or address provided. You may also be asked to drop the paperwork at the nearest branch.
5. A minimum premium of Rs.100* will be retained by the insurance company and the balance will be refunded based on pro rata basis as per the timelines.

*Rs.25 in case of two wheelers designed/or modified for vehicles owned by blind/handicapped/mentally challenged owners.

Tip: If you’re contemplating on switching over to another insurer for your two wheeler for a lower premium, compare the benefits and features before making a decision to ensure that no compromise is made on these aspects.