As per the Motor Vehicles Act of 1988, it is legally necessary to have a two-wheeler insurance policy if you want to ride your bike on Indian roads. As such, all bike owners must comply with this mandate and secure their bike with a well-structured two-wheeler insurance policy. However, there are many people who continue to roam the roads on their bikes without any sort of insurance policy with them. While some may have genuinely forgotten to renew their policies, there are some who do it on purpose. Such a decision can bring heavy consequences for you as well as others. Let’s look at how.
- You will incur high fines/ penalties
If you are caught by the authorities riding your bike without any insurance policy, you will be liable to pay a fine. Presently, the fine is Rs 1000 and/or 3 months imprisonment. If you are caught riding without any bike insurance for the second time, you will incur a fine of Rs 4000 and/or imprisonment. The amount may increase the third time and can lead to further dire consequences.
It is better to avoid these fines and rather invest money into a good two-wheeler insurance policy.
- You will have to face legal liabilities
If an accident involving your bike leads to damage for someone else or their property, then you will have to pay compensation to the injured party. Failure to do so can even lead to further legal complications, which may result in more financial liabilities for you. So, to avoid such a scenario, it is wiser to purchase a two-wheeler insurance policy. Even a basic two-wheeler insurance policy is equipped to cover you against third-party liabilities.
- You will have to pay for your own damages
An accident results in damage not only for the third-party/parties but also for yourself. If the accident has been severe, the damages to your bike may also be very serious, requiring a lot of repairs. The cost of these repairs can be quite high depending on the model of the bike, the severity of the damage, the location of the accident, and so on. In this scenario, a comprehensive two-wheeler insurance policy can be your saviour. While a basic third-party policy covers third-party liabilities only, comprehensive two wheeler insurance covers the costs for own damage as well. Thus, we see how having bike insurance can save you from heavy expenses during a mishap.
- Your finances will suffer in case of total loss of bike
If you do not have a comprehensive two-wheeler insurance policy and an unforeseen event like theft or a natural calamity causes total loss of your bike, you will have no option but to bear the losses on your own. Not only will you lose your precious bike, but the financial aspect of losing such an important asset can also be very difficult to process. To avoid such a situation, you can purchase a comprehensive two-wheeler insurance policy. Most two-wheeler insurance policies cover you against total loss of bike due to theft or a natural calamity like floods, storm, lightning, earthquake, and so on.
Do remember that the coverage and features of various bike insurance policies differ between insurers.
We hope this article has helped you realize the importance of having bike insurance. Ride safely!