When you buy a two-wheeler, its registration and insurance are the first steps to be completed. While registration is handled by your vehicle dealer, the insurance is one thing you need to closely look at. Generally, the dealer recommends a policy. This policy may not always be the right fit and thus you need to shop for one keeping in mind your requirements. A few buyers however have contrasting views that insurance is an added requirement thereby increasing the financial burden each period while the probability of an accident is scarce. But that isn’t the reality. To skip buying an insurance plan can not only attract legal consequences, but also seem like living your life on the edge. This article aims to highlight the reasons why you should not overlook buying a two-wheeler insurance due to the following reasons –
Two types of bike insurance policies are available—a third-party cover or a comprehensive cover—that can be purchased. The damages to your bike are covered under a comprehensive cover. This policy includes own-damage cover that makes it superior insurance policy. In addition, any natural calamities or man-made perils like theft, riots, etc. can damage your bike. These too are included in comprehensive policy’s scope. But in the event of an accident involving third-party, it could attract legal liabilities for injury, death or even disability faced during an accident. * Standard T&C Apply. In these situations, a two-wheeler insurance policy is one that comes to the rescue. To save the hassles of legal liabilities, a third-party cover is the bare minimum that you must consider buying.
The Motor Vehicles Act of 1988 makes it mandatory to have motor insurance for all vehicles registered in the country. Two-wheelers are no exception to this rule. Hence, the regulator, IRDAI makes it mandatory to have at least third-party insurance coverage as the bare minimum. You can visit the official website of IRDAI for further details. Non-compliance of this law attracts hefty penalties. In addition, these bike insurance fine as per the latest Motor Vehicles (Amendment) Act, 2019 are increased wherein riding without a valid insurance is set at ₹2,000.
If you already have a policy, not renewing on time can mean a lengthy process. You might be required to go all over the purchase process, i.e. inspection of your bike, its documents and more to avail insurance coverage. Also, the possibility of a higher premium being levied or even rejecting some applications in case of any illegal modifications on the bike. Instead, you must ensure to avoid the entire hassle of buying a fresh insurance cover, and instead renew the two wheeler insurance online.
Forfeiture of no-claim bonus
In the event of failing to renew your policy before due date, there may even be a loss of policy benefits like the no-claim bonus. Here, the insurance companies offer a concession in renewal premium if no claims are raised during the previous policy tenure. Failing to renew your policy after 90 days after the expiry of due date leads to forfeiture of such no-claim benefits as a result requiring you to pay the full amount of premium. * Standard T&C Apply
With the above pointers in mind, make sure to renew your policy on time and select one considering the necessary requirements. In this decision, a bike insurance calculator can come handy managing the cost vis-à-vis its coverage. Also remember that insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.