Why Bike Insurance Is Compulsory In India? Benefits & Coverage In Bike Insurance

By Okbima 29 Jun 2024
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Bike insurance is mandatory in India for legal compliance, financial security, liability coverage, personal accident protection, and promoting responsible riding. The Motor Vehicles Act of 1988 requires insurance for all motor vehicles to avoid penalties. It provides coverage for accidents, theft, damage, third-party liabilities, and personal accidents, promoting safe driving practices and emission norms compliance.

 

Why Bike Insurance Is Compulsory In India? Top 7 Reasons

Bike insurance is mandatory in India to provide financial protection, comply with laws, cover third-party liabilities, prevent theft and damage, promote safe driving, reduce victim burden, and give bikers peace of mind.

  • Legal Requirement: As per the Motor Vehicles Act, of 1988, it is mandatory for all motor vehicles, including bikes, to have insurance coverage. Riding a bike without insurance is a punishable offense and can cause fines or even imprisonment.

  • Protects Against Financial Loss: Bike insurance provides financial protection in case of accidents, theft, or damage to your bike. It covers the cost of repairs or replacement, saving you from bearing the full burden of expenses.

  • Third-Party Liability Coverage: Bike insurance also includes third-party liability coverage, which protects you against legal liabilities that can happen due to injuries or damages caused to a third party in an accident involving your bike.

  • Personal Accident Cover: Most bike insurance policies offer personal accident cover for the policyholder and pillion riders in case of death or disability due to an accident. This provides additional financial security for you and your family.

  • Peace of Mind: Having bike insurance gives you peace of mind knowing that you are financially protected in case of unforeseen events. You can ride your bike with confidence, knowing that you are covered in case of emergencies.

  • Compliance with Emission Norms: In India, bike insurance also plays a role in compliance with emission norms. To renew your bike's registration, you need to have a valid insurance policy that meets the necessary emission standards.

  • Encourages Responsible Riding: By making bike insurance compulsory, the government aims to encourage responsible riding & to follow traffic rules. It promotes safety among bike riders, reducing the number of accidents on the roads.

 

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Bike Insurance Benefits In India

There are many bike insurance benefits in India such as it provides financial protection, third-party liability coverage, personal accident cover, etc.

  • Financial protection: Bike insurance provides financial protection in case of any damage to your bike due to accidents, theft, natural disasters, etc. It covers the cost of repairing or replacing your bike, helping you avoid high expenses.

  • Third-party liability coverage: In India, it is mandatory to have third-party liability insurance for your bike. This coverage protects you from financial liabilities towards any third party who suffers bodily injury, death, or property damage due to an accident involving your bike.

  • Personal accident cover: Most bike insurance policies offer personal accident cover for the owner/driver of the bike. In case of an accident that may cause disablement or death, this cover provides compensation to the insured or their family members.

  • No-claim bonus: If you haven't made any claims during the policy period, you are eligible for a no-claim bonus. This bonus can be a discount on your bike insurance premium when you renew the policy.

  • Additional coverage options: You can enhance the coverage of your bike insurance policy by getting add-ons such as zero depreciation cover, roadside assistance, engine protection, accessories cover, and more. These add-ons provide extra protection and convenience to bike owners.

  • Legal compliance: Having bike insurance ensures that you comply with the legal requirement to have at least third-party liability insurance in India. It protects you from legal penalties and fines for not having valid insurance coverage for your bike.

 

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What Is Covered In Two-Wheeler Insurance Policy?

A two-wheeler insurance policy covers third-party liability, own damage, personal accident cover & many more.

  • Third-party liability: This covers damage to a third party's property or injury to a third party in case of an accident involving your two-wheeler.

  • Own damage: This covers damages to your two-wheeler due to accidents, natural disasters, theft, fire, vandalism, etc.

  • Personal accident cover: This covers medical expenses in case of injuries to the rider or pillion rider.

  • Optional covers: Some insurance companies offer additional covers such as roadside assistance, engine protection, zero depreciation cover, etc. at an extra premium.

 

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Factors To Consider Before Getting Bike Insurance

Factors to consider before getting bike insurance are type of coverage, cost of insurance, claim settlement ratio, network of garages, etc.

  • Type of Coverage: Consider the type of coverage you need for your bike, such as third-party liability, comprehensive insurance, or add-on covers like zero depreciation and roadside assistance.

  • Cost of Insurance: Compare quotes from different insurance providers to find the best premium rates that fit your budget.

  • Claim Settlement Ratio: Check the claim settlement ratio of the insurance company to ensure that they have a good track record of settling claims quickly and fairly.

  • Deductibles and Limits: Understand the deductibles and limits of the insurance policy as they can affect your out-of-pocket expenses in case of a claim.

  • Network of Garages: Check the network of garages where you can get cashless repairs for your bike in case of an accident or damage.

  • Discounts and No Claim Bonus: Look for insurance companies that offer discounts or no claim bonuses for safe riders who have not made any claims in the past.

  • Additional Benefits: Consider the additional benefits offered by the insurance company, such as emergency assistance, coverage for accessories, and personal accident cover.

  • Customer Service: Read reviews and feedback from other customers to gauge the level of customer service provided by the insurance company.

  • Policy Terms and Conditions: Carefully read the terms and conditions of the insurance policy to understand what is covered and excluded from the policy.

  • Renewal Process: Make sure to understand the renewal process and timeline for your bike insurance to avoid any lapses in coverage.


 

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Conclusion

In conclusion, bike insurance is mandatory in India for many reasons such as financial protection, legal compliance, third-party coverage, theft prevention, safe driving promotion, victim burden reduction, and peace of mind. Understanding the benefits and coverage included in policies can help bike owners make informed decisions to stay safe and secure on the roads.

 

FAQs

Yes, all bike owners in India must have insurance coverage.

Yes, third-party bike insurance is mandatory in India under the Motor Vehicles Act, of 1988.

Riding a bike without insurance is illegal and can cause fines or penalties.

Yes, you can choose between third-party insurance and comprehensive insurance based on your needs and budget.

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