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Why should you buy two-wheeler insurance?

Suppose, Mr Kumar, who has no bike insurance, is riding his bike and accidentally collides with Mr Sharma’s car. He damages his bike as well as the car. In such a case, he will spend money on the repair of his bike and he will be liable to pay for the damages he has caused to Mr Sharma’s car as well. If Mr Sharma sues Mr Kumar, the expenses on the lawsuit will also make a big hole in Mr Kumar’s pocket. However, if Mr Kumar has bike insurance, the entire amount spent on his bike along with the third-party liability will be by the insurance company.

Your two-wheeler insurance protects you against the financial burden that you may have to carry in case of an accident. As per the Indian Motor Vehicle Act, it is compulsory for all vehicles to have an insurance cover. There are basically two types of two-wheeler insurances-Third Party Insurance and Comprehensive Insurance and they both are under the IRDAI (Insurance Regulatory and Development Authority of India). Let us understand them in detail.

Third Party Insurance

As per law, the third-party insurance is compulsory for every running vehicle in India. This particular insurance cover is designed to take care of your legal accountability in an event where while riding your two-wheeler you hurt someone or damage his property. The third-party insurance as the name suggests, cater to the third party but does not give you any personal coverage to you.

Comprehensive Insurance

To overcome the shortcomings of the third-party insurance, it is highly recommended that you purchase a comprehensive plan of insurance. A comprehensive insurance plan gives your bike/two-wheeler protection against damage as well as theft. It safeguards your finances. Damages that occur because of a

  • Collision
  • Natural calamities like earthquakes, landslides and floods
  • Theft, riots and other man-made disasters
  • Self-ignition or lightning of the two-wheeler

Not Having Two-Wheeler Insurance

The only time when you may consider not having a bike insurance is when you are going to stop riding it. As per a recent survey, 75% of the total population of two-wheelers do not have valid insurance. But this is a very careless and irresponsible approach. Without insurance you may face the following problems often:

  • If you are riding your two-wheeler and caught by the police without the insurance, you will end up paying a hefty fine along with the possibility of imprisonment.
  • If you forget to renew your policy in time, you may lose out on the No Claim Bonus.
  • You will be vulnerable if any legal action of negligent riding is taken on you.
  • Making a lapsed policy active is a long and tedious process.

Keep In Mind

When planning to buy an insurance policy, it is recommended that you go through all the details of various plans available. You must ensure the authenticity of the company as well as the policy. You must always ask for complete paperwork including the receipt for the payments made by you.

Conclusion

Having a bike/two-wheeler insurance is mandatory but that should not be the sole reason of purchasing an insurance. When you invest in an insurance policy you also are contributing towards yours as well as your vehicle’s safety and security. Having the right insurance for your bike/two-wheeler ensures that you have a sense of safety and contentment. You are abiding the law and are also protecting yourself and your vehicle.Therefore, buying an insurance policy is worth every penny.