Two-wheeler insurance is a mandatory requirement for all two-wheeler owners other than its registration and PUC. While buyers comply the registration and PUC requirements, they often overlook the importance of an insurance policy. It is most regarded as a financial burden and thus, skipped. However, there are legal as well as financial consequences when you do not buy one.
Two-wheeler insurance plans are essentially available in two types—third-party policies and comprehensive policies. A third-party plan, also known as liability-only cover, is the insurance cover that ensures protection against legal liabilities arising due to an accident or damage. But such a third-party plan offers no protection for damages to your bike. Thus, it is the minimum required insurance cover for all two-wheeler owners.
Comprehensive plans, on the other hand, are policies that include third-party coverage along with own damage cover. Thus, offering an all-round protection for damages as well as legal liabilities. Now that you know the basic distinction between different types of insurance plans, here are some reasons why you should not ignore buying a two-wheeler insurance policy. Let’s have a look:
- Attracts legal liabilities and hefty losses
A comprehensive two wheeler insurance policy is essential not just for the rider, but also for the other riders and pedestrian’s security. Any unexpected accident injuring the rider can attract hefty damages and a two-wheeler plan is what safeguards you. Not having one can attract hefty losses which may prove to be expensive.
Further, in case of an accident involving a third person, it can get even more worse where you are required to compensate for injuries or damages to such third person. A third-party plan ensures financial safeguard against such legal liabilities. Thus, it is better to invest in a robust vehicle insurance policy instead of attracting legal liabilities. *
- Attracts fines and challans
Riding a two-wheeler without an insurance cover attracts fines if checked by a traffic official. These fines, as per the latest amendment to Motor Vehicles Act of 2019, have been increased to ₹2000 for first offence from the erstwhile ₹1000. For every subsequent offence, such fine is ₹4000 thereby burning a hole in your wallet. In addition to such a monetary fine, imprisonment for three months may be required, and it can be either as a replacement to the fine or in addition to such amount of penalty. Instead of paying such steep fines, it is better to purchase a two-wheeler insurance cover that offers legal as well as financial protection. *
- Tedious process to renew a lapsed insurance cover
Renewing you bike insurance policy after its lapse may require you to get you vehicle inspected all over again in addition to the documentation formalities. It is the same as obtaining a new two-wheeler insurance cover and hence is a time-consuming process. To avoid all such hassles, it is better to ensure it is consistently renewed avoid unnecessary hassles. *
Other than the above reasons, loss of no-claim bonus (NCB) is another reason to not miss the renewal. It is an added benefit that helps to lower the incidence of premiums when you do not make an insurance claim during a policy tenure. To know how much benefit you can avail, you can make use of a two wheeler insurance premium calculatortoo. *
* Standard T&C Apply
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.