According to the Motor Vehicles Act 1988, it is mandatory for every vehicle, whether private or commercial, to have at least third-party insurance coverage. It comes under several rules which the Act enforces on the vehicles to be run on Indian roads. As such, if you are planning to get a motorbike or already have one then bike insurance becomes mandatory to make your vehicle legally functional.
Comprehensive Guide To Bike Insurance
If a bike is involved in an accident, the bike insurance can also provide compensation for damages the vehicle has undergone. There are basically two types of insurance plans:
Third-Party Two Wheeler Insurance Policy
This insurance policy is made mandatory by the Motor Vehicles Act, 1988. Whether you opt for a package policy or not, a third-party insurance policy is a must. Its basic function is to provide coverage for the damage or injury suffered by another person/party who suffers a loss due to your vehicle.
Comprehensive Package Policy
In addition to providing the basic third-party insurance policy, the comprehensive package policy also covers the damages made on the bike itself in an accident. This policy, therefore, provides coverage not just to a third-party but to the bike as well. It is always recommended to go for a comprehensive package of bike insurance.
Since it covers two parties involved in an accident, the premiums are higher for a comprehensive policy than for a third-party liability policy. Getting such coverage has become quite easy in recent years. You can even apply for bike insurance online. A comprehensive package policy will also cover the damages to your bike.
Benefits Of Getting A Bike Insurance In India
It is not for nothing that people pay premiums from their pockets to get bike insurance. By getting bike insurance, you get to have certain benefits which can be extremely important in rare situations.
Covers For An Accident
The biggest and most apparent benefit of bike insurance is that it takes the financial load off from you for suffering an accident or injury in regards to both your bike and yourself. Everyone knows how expensive an accident can be. Giving affordable premiums, therefore, seems preferable as an alternative.
Provides Coverage For Others As Well
Whatever insurance policy one opts for, the third-party liability policy remains compulsory. This safeguards the interests of others. It is beneficial for the owner of the bike himself as he too can enjoy this benefit when it comes to other vehicles. Through a third-party liability policy, one does not have to wait on the solvency of the person through whose vehicle the accident took place. The insurance company will take care of the redressal on its own.
No Claim Discount
If you renew your bike insurance policy without making a claim, you are likely to get discounts and bonuses on the same. The margin of discount keeps on increasing with each passing year where the insurer did not make a claim. The discount can be directly reflected on the premiums you will have to pay for the upcoming period of a renewed policy.
Penalty Avoidance
Since it is mandatory for the bike owners to have at least third-party liability insurance policy, a traffic policeman can ask for the same from any rider. If you fail to show your insurance papers, a hefty penalty amount will be charged in your name. To avoid such unnecessary expenditure, you should get bike insurance as early as possible and keep the documents handy.
Long-term Premium Benefits
The rates of insurance premiums seem to be increasing year after year. But by taking a long-term insurance cover, you will not only be getting some additional offers with it but the premium rates for the first three years of the policy will not be subjected to any change. This way you can save some money as well as enjoy the full benefits of the bike insurance policy.
Cancellation Refund
Many bike insurance policies also provide full refunds upon cancellation or termination. If, for instance, your bike is stolen, then some policies will provide you refunds for the unexpired years. However, this works only for long-term policies. In a one year policy, the same cannot be expected.
Why Is It Important To Get Bike Insurance?
Being a law-abiding citizen is the first and foremost duty of any individual in the country. As a bike rider, it is part of your fundamental duty to go for bike insurance. It is all the better if you go for a comprehensive package policy, as it will look after any damage suffered on your part as well as that of the others.
Once you get a bike insurance policy, you are going to remain stress-free while taking your bike on the road. The safety and well-being of others will also be ensured with your bike insurance. Remember, accidents may be accidental not having an insurance policy is not.
