The Insurance Information Bureau has data that says a whopping 60% of vehicles are not insured, and most of these vehicles are two-wheelers. Around 70% of the vehicles on the roads are two-wheelers, and about 30% end up in accidents across India.
In the above numbers, a fair amount of bike owners are uninsured even though the importance of insurance is made known and even after it is made compulsory by the law.
This happens because of two reasons. One, most people are ignorant of the law and do not buy bike insurance in the first place, and secondly, even if people buy a bike insurance plan, they forget to renew it on time.
Important Laws and Facts About Two Wheelers
- Registration Certificate
The RTO issues a registration certificate that contains information about the vehicle, such as the chassis number (identification number), registration number, and engine capacity.
- Valid Driver’s License
You should have a valid driver’s license. You need a two-wheeler license if you want to ride a motorcycle with gear.
You should always have a copy of your motorcycle insurance. It should be mentioned here that the insurance validity is also important, i.e., the policy should be renewed on or before the expiration date.
- Pollution certificate
This is usually issued at a check station (near a gas station) with a year's validity period for new riders and a six-month validity for renewals.
- No triple riding
Only two people may ride on a bike at a time.
This is the most crucial item. Both the rider and the pillion rider should wear helmets.
Two Wheeler Insurance Types
Bike owners can choose between comprehensive two-wheeler insurance and third-party insurance, depending on their needs. In India, bike insurance is required, although only third-party liability coverage is mandatory.
This eliminates the need to purchase a comprehensive coverage plan that covers both the owner and third parties.
Third-party insurance is required since anyone can file a claim for damages to their property, health, or vehicle if they are involved in an accident. As a result, if the insured cannot afford the damages, the insurance company will provide financial help to meet the costs.
However, the following reasons tell why we should buy comprehensive two-wheeler insurance:
- Extensive Coverage
A comprehensive auto insurance policy covers bike theft, loss, or damage. It also covers damages to the insured’s bike caused by natural disasters like floods, earthquakes and lightning, as well as man-made disasters such as strikes, terrorist operations, riots, etc.
- Coverage for Personal Injuries
Comprehensive two-wheeler insurance includes personal accident coverage to give the financial support that an insured needs to recuperate from the injuries and health difficulties sustained in an accident. It also covers the insured in the event of permanent disability or death because of the accident.
- Additional Protection
If a pillion rider is required, comprehensive coverage permits the rider to get supplementary coverage for the pillion.
Reasons to Have an Insurance Policy
- It compensates for the damage to the bikes.
- It pays hospital bills.
- It gives complete protection to your family.
- It is made compulsory by law.
Penalty for Uninsured Riders
All motorcycles must carry third-party insurance, according to the Motor Vehicles Act 1988.
Riding an uninsured motorcycle in India carries a penalty of INR 2,000 and/or three months in prison for a first offence. For the second time, you will have to pay a fine of INR 4,000 and/or serve three months in prison.
Two Wheeler Insurance Updates
There is a surge in the purchase of electric bikes, but this has come at the cost of an increase in the number of batteries catching fire. Because of this reason, there could be an increase in two-wheeler insurance premiums.
While EV manufacturers pay for the loss or damage because of manufacturing faults, insurance companies compensate for death, accidents, and injuries under the current insurance coverage plans.
Existing insurance plans do not cover an individual’s loss or accident caused by vehicle's manufacturing flaws.
Strict Application of Laws
Since 2015, the number of people dying or getting injured in traffic accidents has increased. These figures are only causing concern among government officials, not among riders.
To address this risk and deal with any two-wheeler disaster on the road, the government has mandated the purchase of insurance coverage. It’s not just for the sake of our bikes but also for our safety.
You may be skillful drivers, cautious and attentive to everything on the road, but you may still meet with accidents. That is why it is critical to purchase an insurance policy.
The Bottom Line
Many ads, newspapers, news stories, and online posts have talked enough about buying two-wheeler insurance, but people have stayed ignorant, assuming nothing would happen to them on the roads. Be a loyal citizen and buy a bike insurance policy that offers maximum coverage.
Read more - Myths About Two Wheeler Insurance