As all vehicles are susceptible to risk and accidents, purchasing insurance brings you additional security and peace of mind. However, many vehicle owners are confused as to whether two-wheeler insurance is mandatory for 5 years or not. Let’s find out.
The verdict - A two-wheeler insurance is mandatory for 5 years
Many people are still unaware of the recent decision taken by the Supreme Court on two-wheeler and four-wheeler insurance. From September 2018, customers had to shell out extra money while purchasing their vehicles, as long-term insurance had to be compulsorily bought simultaneously.
Supreme Court had made two-wheeler insurance compulsory for 5 years and four-wheeler insurance for 3 years, for newly purchased vehicles. The decision was taken to ensure that owner-drivers are compulsorily secured for a longer-term, from the moment they purchase the vehicle; and to give a boost to the Insurance sector from a commercial viewpoint.
Types of two-wheeler insurance
Third-party insurance is the most popular two-wheeler insurance where the bike or the rider is not covered for the damages. However, other party’s damage caused during an accident will be covered up to an agreed amount.
Comprehensive insurance insures the policyholder against theft, damage, or loss of his two-wheeler, along with third-party liability, personal accident cover and own damage. Rider or owner’s damages are covered up to a certain limit under personal accidental cover. Comprehensive insurance is not compulsory by law, but it is advisable to purchase comprehensive insurance as it covers all the damages that may happen to you. If you are looking for features like engine protection and zero depreciation of the vehicle, then you must certainly go for comprehensive insurance.
Benefits of two-wheeler insurance
1. It secures you
Insuring your two-wheeler will give you a sense of security and develop confidence while riding on the road. Along with the coverages for your bike, you also get a Personal Accident Cover of Rs. 15 lakh and an optional add-on cover for the pillion rider.
It prevents you from being fined for not insuring your vehicle. You should note that carrying expired insurance paper is punishable under the act.
2. Protection against damage
In the case of comprehensive insurance, any damage caused to you, by man-made or environmental/natural calamity, will be covered by the insurance company. The bike is covered against theft, fire, explosion, floods, earthquake, riots, terrorist attacks, etc.
3. Protection of legal interest
Many people are unaware of the fact that third party insurance is compulsory under the Motor Vehicle Act, 1961. Not having motor insurance is a punishable offence. Insuring your two-wheeler keeps you secure and also safeguards you against accidents where the insured vehicle is involved.
4. Covers your medical expenses
When you insure your bike, you get a Personal Accident Cover of RS. 15 lakhs. So, if an accident results in a fatal injury to the rider, 100 percent of the sum insured will be paid by the insurance company to the nominee. The insurance company might also pay the complete amount if the insurer suffers from a permanent disability like loss of eyesight, limbs, etc. in a road accident.
Some important tips to keep in mind while purchasing two-wheeler insurance
- Ensure that your name mentioned in the policy is correct, and it is the same as that mentioned in all your important documents and the previous policy. If the name is changed or is different, the insurance stands invalid.
- Any incorrect or false detail about the insurer can lead to bike insurance frauds. Any claims under such cases will not be accepted by the insurance company.
- Mention a nominee when you buy two-wheeler insurance.
- Remember your policy expiry date and do not allow your policy to lapse. Renewing your bike insurance on time will keep you safe and secure. Do not forget to select the correct NCB (No claim bonus discount) as it was mentioned in the previous policy
As bikes have remained a popular choice of commuting, there should be awareness abound two-wheeler insurance policies. Stay insured, stay safe!