“Why Two Wheeler Insurance is Mandatory in India” if this question arise in your mind, then must read the complete article because two-wheelers are unquestionably the most ideal mode of personal transportation in India, whether it is a rural countryside or a congested urban metropolis. This is because two-wheelers make navigating the tiny roads of rural regions as easy as navigating the crowded streets of a large metropolis like Mumbai, Bangalore, or Delhi. Furthermore, most individuals can readily afford two-wheelers. In fact, even individuals who cannot afford two-wheelers may now obtain loans from banks to purchase them.
These reasons, together with the expanding capacity and ambitions of the Indian middle class, are expected to result in a surge in two-wheeler popularity in India, as well as a higher number of two-wheeler vehicles on Indian roads than ever before.
Obtaining at least a Third-Party Liability Two-Wheeler Insurance Policy is necessary for people unfamiliar with Indian motorcycle insurance requirements. This regulation is based on the Motor Vehicles Act. If you do not follow the law, you will face financial consequences. If you don’t obey the rules, you might wind up in jail! Worse, an uninsured bike accident might have serious legal ramifications. But why is it so important to get bike insurance in India? Continue reading to learn more about the necessity of vehicle insurance in India, as well as the solution to this issue.
There are reasons why two-wheeler insurance is mandatory in India?
The quick answer to “why is bike insurance mandatory in India” is that accidents happen. Owing to this unpredictability, having insurance for both yourself and anyone who may be hurt by your vehicle is essential. As a consequence, there are two fundamental types of bike insurance plans available in the Indian market: third-party liability and comprehensive bike insurance.
The only one that is necessary is the Liability Plan. The Extensive plan has both comprehensive and required coverage. Consequently, you will have the needed coverage regardless of the plan you pick.
Why should you insure your two-wheeler?
Almost every motor company offers bike insurance when selling a fresh new two-wheeler. Most individuals, on the other hand, either cancel their insurance to gain a discount or do not renew it when it expires. Perhaps people don’t want to renew their insurance because they want to save money, or they just don’t have the time! However, the root of their pessimism about bike insurance is that they don’t understand why they should bother with it in the first place.
To put it in context, there are two primary reasons for getting insurance for your two-wheeler: first, it is required by law for all two-wheelers operating on Indian highways to have third-party insurance. Second, insurance protects you, your car, and any third parties involved in an accident or incident, as well as saving you money.
While third-party liability insurance is required by law, it is strongly recommended that you get a comprehensive two-wheeler insurance plan. Accidents, thefts, natural catastrophes, and other risks are all covered under a complete insurance.In addition, the comprehensive insurance policy covers third-party injuries and property damages. To help you make an educated selection, we’ve put together a complete comparison of both third-party insurance and comprehensive or standard insurance.
How does bike insurance protect you?
A bike insurance policy protects you in two ways: it protects you from legal liabilities, and it protects you from financial losses resulting from bike-related incidents.
1. Legal Liabilities
If your bike loses control and injures a person or causes property damage, you are legally responsible for the damages. A Third-party Liability policy protects you from such obligations by allowing the insurance provider to manage your legal liabilities on your behalf according to the terms and conditions of the policy.
2. Financial Expenditure
A Comprehensive Bike Insurance Plan can help you get your bike repaired without having to pay a large number of money out of pocket if your bike is destroyed in a flash flood or by fire caused by rioting. The insurance company will manage the repairs in accordance with the policy’s terms and conditions.
What does a mandatory two-wheeler insurance policy cover?
The coverage of a two-wheeler insurance policy determined by the kind of coverage. A simple Third-Party Liability policy provides minimum coverage, but a Comprehensive Plan provides broad coverage, and a Comprehensive Plan combined with appropriate Add-ons provides comprehensive coverage. The premium for the same rises in tandem. The following is a summary of the coverage provided by various types of plans.
1. Third-party Liability Cover
A liability-only policy provides the policyholder with the following coverage.
- Legal Cover:Legal concerns originating from harm to a third party or property damage to a third party are handled by the insurer in accordance with the terms and conditions. They provide the third party monetary compensation.
2. Comprehensive Cover
The following coverage is provided by a Comprehensive Plan to the policyholder. It also addresses the issues raised in the section on Third-Party Liability Coverage.
- Loss Due to Natural Calamity:Several parts of India have grown vulnerable to natural disasters such as flash floods, cyclones, and fires. If your bike destroyed as a result of these difficulties, the insurer will cover the repair costs.
- Loss Due to Man-made Calamity:Aside from natural disasters, there are also man-made disasters. A large-scale riot may wreak havoc on the city’s infrastructure. You can file a claim with your insurer for suitable reimbursement if your bike destroyed in such incidents.
- Loss Due to Theft:Bike theft is a risk not just in rural locations, but also in semi-urban and metropolitan settings. The policyholder protects against bike theft under a comprehensive plan. The policyholder gets reimbursed with the bike’s Insured Declared Value in the event of such an unfortunate incident.
Comprehensive Plan and Add-ons
You may also buy a Comprehensive plan and then add on appropriate Add-ons to expand your coverage. You’ll have to pay a little more for the Add-on, but you may buy many Add-ons and pay separately for each one. In times of need, these Add-ons provide excellent support and help. Here’s a rundown of some of the most common bike insurance add-ons.
- Zero Depreciation: The insurance will not calculate depreciation when settling claims with this Add-on. As a consequence, your claim will pay out more quickly.
- Pillion Rider Cover: This may be thought of as pillion rider accident coverage. If you frequently travel with a pillion rider, this type of Add-on is appropriate.
- Invoice Protection: If you choose this Add-on, the insurance will compensate you for the bike’s invoice value in the event of a total loss. Otherwise, when resolving complete loss claims, the insurer considers the Insured Declared Value. The Declared Value of an insured item is always less than the Invoice Value.
- No Claim Bonus Protection: With this Add-on on your side, you may file a claim while still being eligible for the No Claim Bonus renewal discount (NCB). Its name comes from the fact that it protects your No Claim Bonus component.
Buy Two-wheeler Insurance Policy Online
The world has transformed as a result of the Internet and cellphones. With a few mouse clicks, almost anything can be purchase. Bike insurance is no exception. On the websites of insurance companies, you may insure your bike in under five minutes from start to end. Two-wheeler insurance purchased online is simple to comprehend, purchase, and claim.
Best Mandatory Tips to Remember When Buying Two-Wheeler Insurance:
Here are a few guidelines to keep in mind when purchasing two-wheeler insurance online.
- Before you go out and get a policy, be sure you know what you need.
- Examine the policy’s coverage, cost, and features in depth.
- Take a look at the plan’s terms and conditions.
- Digital-first insurers recognize for providing comprehensive coverage at extremely low costs.
- If you want complete coverage, go with a Comprehensive plan.
- Choose just the Add-ons that will improve the value of your coverage.
