Your two-wheeler is your best friend for the road! As per the recent report of Business Standard, India has registered more than 21 crore two-wheelers, and the number increases each year. While it makes your life easier, it also comes with its share of insecurities whether you are riding or have parked your bike somewhere while you are away for a task. You cannot avoid something that’s not in your control, so you have no other option than to let such events hit your pocket. But how will you take care of the stress and legal challenges that you may have to face? Bike insurance works as a shield.
It is mandatory by Law
The Motor Vehicles Act of 1988 sets forth all regulations and legislation pertaining to vehicles. According to this law, all two-wheeler owners are required to have bike insurance. Failure to do so will be viewed as a violation of the law, and you will be subject to a penalty.
The fine for operating a two-wheeler without insurance is INR 2000 if you are caught once. Repeated offences will result in a higher fine. But be careful — if you don't insure the bike, you might potentially receive a 3-month jail sentence.
Eases Paying the Third-party Compensation
Motorcycles pose a greater danger than the enclosed-door security provided by a car or other vehicle. Additionally, when riding, you must maintain the bike's balance at all times. You might not be the only one who gets hurt in an accident. There can be other victims, such as a third party.
According to the law, if you caused the accident, you must pay for the loss a third party incurred. Depending on the severity of the accident and the degree of the damage inflicted, this loss might reach lakhs of rupees. Having bike insurance can help you cover any expenses resulting from accidents, fatalities, or property damage. Consequently, you may give prompt recompense.
Enables You to Pay Damage Repair Bills
In the event of a financial problem, people occasionally tend to put off bike maintenance. In such situations, choosing alternative modes of transportation is rather usual. But if you have your bike covered under a comprehensive insurance policy, it can help a lot. Here is one instance.
Tushar had an accident with his bike. He had a third-party bike insurance cover that paid for the other party. But he could not repair his own bike due to a little financial crunch he was facing then. He had to take public transport for a long time until he got his bike repaired.
If he had opted for a comprehensive bike insurance cover with a right add-on, he would have received the expenses for his bike repairs too.
Safeguard Your Pocket Against Theft
You may feel secure against the possibility of bike theft by purchasing a comprehensive bike insurance policy. In the event that your bike is stolen, you can file a claim by gathering evidence. Bike insurance has a feature known as IDV (Insured Declared Value). This quantity must be set, and setting it correctly is essential too.
The secret is to put the IDV between the bike's approximate current market value and that amount. If the claim is accepted, your insurance company will reimburse the compensation equal to the IDV of your motorcycle. Thus, even in the event of bike theft, you sustain little financial loss.
Compensation Against Man-made or Natural Crisis
One common myth is that bike insurance does not cover damage caused by natural disasters. Actually, it is. If your motorcycle is destroyed by a natural or man-made disaster, such as a flood, earthquake, riot, vandalism, landslide, etc.motor insurance can assist. This policy offers complete protection against such mishaps and got you covered.
Take Advantage of Add-on Covers
Comprehensive insurance offers add-ons, or extra coverage, that you can purchase for an extra cost. This includes things like zero depreciation coverage, roadside assistance coverage, engine protection, return-to invoice, passenger cover, etc. It provides you with the option to modify and tailor your insurance so that it satisfies your needs while still being sensible for your circumstances. However, you cannot buy bike insurance add-on covers with a third-party bike insurance policy.
Know Some Facts Before You Buy a Two-wheeler Insurance Policy
Trustworthiness of the Insurer
It is important to assess the reputation of an insurance company before purchasing an insurance plan. One of the best ways to know the same is to check the Claim Settlement Ratio (CSR) of a company. How effectively an bike insurance company is settling the total number of claims registered is surely an ideal way to build a trust. Moreover, you can also visit the social media pages of the insurer and go through the client evaluations to see whether they are a dependable source of insurance. Positive reviews should outweigh negative ones in quantity.
Bike insurance provides financial protection so that, should your bike be damaged, you won't sustain significant financial losses. However, it is essential that you first have enough insurance coverage. Inadequate coverage may result in claim denial and, ultimately, dissatisfaction.
Identify the Exclusions
Exclusions, or items that are not covered by a bike insurance policy, are just as crucial as coverage. To determine when you may make a bike insurance claim, you must be completely aware of exclusions mentioned in your policy.
Check Out the Rules and Regulations
Some people have the tendency to ignore the fundamental guidelines related to the benefits of a bike insurance policy. But doing so can have the opposite effect. Your claim might be rejected. Despite how exhausting it may seem, you must read the policy's essential provisions and reach the insurance provider if you have any questions.
Read more - Myths About Two Wheeler Insurance
As described in the article, bike insurance is important to purchase not just to find a financial safety net but also to maintain legal compliance. Not insuring your bike can have significant implications ranging from fines to confinement. If you get bike insurance coverage, you are also protecting yourself from significant financial loss in the event that you are involved in an accident or cause injury to someone else. Therefore, get a good bike insurance policy and renew it on time.