Two-wheelers are popular in India for daily commuting, with 1.5 crore on the road in 2021. They offer speed, manoeuvrability, and cost-effectiveness.
Why Is A Two-Wheeler Insurance Policy Necessary?
Although two-wheelers have many advantages, they can be dangerous and prone to accidents. What, then, would be your financial contingency plan? It’s an insurance policy. Let’s talk about the necessity of purchasing a two-wheeler insurance policy.
The Top 5 Benefits Of Purchasing A Quality Bike Insurance Policy
The following is a list of why you should consider spending time and money on a quality bike insurance policy.
1. Law requires it
The Motor Vehicles Act of 1988 mandates third-party bike insurance for all owners, with penalties of Rs. 2000 for the first offence, increasing for subsequent violations. Non-compliance can lead to a three-month jail term.
2. It Permits You To Compensate Third Parties
Bikes are riskier than closed-door vehicles, requiring constant balance. Accidents may involve multiple victims or third parties. If you’re at fault, you’re responsible for their losses, which can be substantial. Bike insurance is crucial for covering expenses and compensating victims promptly in case of accidents, injuries, or property damage. Make sure you renew your bike insurance to get uninterrupted coverage. Claims are subject to terms and conditions set forth under the motor insurance policy.
3. It Assists You In Covering Accident-Related Repair Costs
When someone is experiencing a brief financial hardship, they may tend to put off bike repairs. In such situations, choosing alternative modes of transportation is fairly common. Here’s an illustration.
Rajesh was the owner of an Activa that was involved in an accident. He was covered by a third-party bike insurance plan, which is the most basic kind of bike insurance. Rajesh had to pay for the bike repairs out of pocket because his vehicle insurance did not cover them.
He postponed the repairs and spent almost a month riding in a shared rickshaw because of a cash crunch. Occasionally, he had to wait his turn in a lengthy queue to rent the vehicle. Furthermore, the total amount of money he spent on this transportation was significantly higher than the bike fuel cost.
If Rajesh had purchased sufficient insurance coverage for the bike, the repairs could have been finished more quickly, saving him money.
4. Should The Bike Be Stolen, You Are Entitled To The Bike’s Approximate Market Value
A comprehensive bike insurance policy provides security against bike theft. If your bike is stolen, you can file a claim with proof. This policy includes an IDV (Insured Declared Value), which should be set accurately to reflect your bike’s current market value. If your claim is approved, the insurer will cover the IDV, minimising your financial loss in case of theft. Claims are subject to terms and conditions set forth under the motor insurance policy. *
5. In The Event Of A Natural Or Man-Made Disaster, You Will Receive Compensation
A common misperception is that two-wheeler insurance does not cover damage caused by natural disasters. Yes, that is. If the bike is damaged by a riot, earthquake, flood, landslide, vandalism, or other man-made or natural disasters, motor insurance will aid you. Claims are subject to terms and conditions set forth under the motor insurance policy. *
*Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.