MOTOR INSURANCE

                                                                MOTOR INSURANCE

MOTOR INSURANCE technically called two-wheeler insurance is an ideal tool to safeguard yourself against the financial losses which may arise due to an unfortunate event like a road accident involving a two-wheeler. According to the Indian Motor Tariff, 2002 it is mandatory for every bike owner to have at least a third-party bike insurance cover. It is compulsory for all two-wheeler vehicles to drive legally on the streets.

                                   ‘BETTER INSURANCE, FOR A BETTER JOURNEY’

IMPORTANT TYPES OF BIKE INSURANCE

• 1. Third-Party Bike Insurance Plan
• 2.   Comprehensive Bike Insurance Plan
• 3.   Standalone Own Damage (OD) Bike Insurance Plan

IS BIKE INSURANCE MANDATORY FOR 5 YEARS?

Following a Supreme Court ruling in September 2018, IRDAI has made it mandatory for all new two-wheelers to be issued a 5-year insurance cover. This has been done to ensure that a maximum number of two-wheelers remain insured and also to minimize incidents of lapsed, expired policies, and uninsured vehicles. Bike insurance is mandatory for 5 years (5-years Third-party Plan + 1-year Own Damage Plan or 5-year Third-party Plan) when you buy a new bike.

DOES THE BIKE NEED INSURANCE? WHY IT IS REQUIRED?

A two-wheeler offers plenty of convenience and benefits, especially in terms of saving on time and resources. In fact, more and more individuals are opting for a two-wheeler, as a mode of transportation, especially in cities where there traffic and crowding are a problem. But as a Two – Wheeler offers plenty of benefits, it also comes with its own set of risks. For one, the chances of an unexpected accident can either leave the rider and pillion rider with injuries or even damage the two-wheeler. This can lead to an additional financial burden.

SOME NEEDS FOR BIKE INSURANCE:

• If anybody has bought a new bike, then he has to buy an insurance policy. Under the Motor Vehicles Act, the Government of India has made it mandatory for every bike owner to have an insurance policy.
• The bad condition of roads coupled with rash driving increases the chances of accidents. An accident can cause damage to vehicles inflict injuries or sometimes even result in loss of life. Loss of money is inevitable under these circumstances as one has to spend to repair the vehicle and get medical aid if injured. All the repair expenses can be taken care of by the insurance company if a policy has been bought. Thus, it will not burn a hole in your pocket and you don’t have to worry about unforeseen expenditures.
• Policies also cover damage to the bike by natural calamities like floods, earthquakes, fires, etc. So, you can make a claim under these circumstances.
• A majority of bike owners are people with limited resources. Having an insurance policy ensures that they avoid the burden of unforeseen expenses in case of an accident or theft of the vehicle.
• With third-party Bike Insurance, one can file a claim for the damages to the other vehicle (which is called the third party) involved in an accident.
• The major reason for one to have an insurance policy is that it aids financial support to the policyholder for any expense incurred due to repair work of a vehicle damaged in accidents, natural calamities, etc. By just paying a small amount to buy the insurance policy, one can claim a reasonable amount of money in their time of need.
• It is sensible to take an insurance policy for your bike by paying a nominal amount of money, in order to avoid an additional burden on your budget if a mishap occurs with the bike.