What Happens When You Do Not Buy Two Wheeler Insurance

The only time when your bike does not need an insurance policy is when you stop using it. You can simply park it in your backyard and cover it properly. After all, that is how you treat your beloved bike. However, never take risks by not opting for two wheeler insurance​ if you are still using your bike. 

According to a recent study, it has been found that more than 75% of two wheelers running on Indian roads either do not have a valid insurance policy or it is lapsed. Life is really unpredictable and hence you must always be guarded by an insurance policy. If you have forgotten to renew your two wheeler insurance policy, make sure you renew it immediately to avoid any kind of unforeseen situations. There are people who do not renew their policy deliberately just to save on a few bucks. No matter what your reason is, you must be ready to face the trouble if you are caught off guard as riding a two wheeler without a valid insurance policy is a serious offence in India. Here are the 4 types of hurdles that you could face –

Penalty

Whether it is a two-wheeler or a four wheeler, each and every vehicle must have insurance while plying on Indian roads. If you are caught without a proper policy, you must be ready to pay a very heavy fine or imprisonment up to 3 months. This rule is enforced by Motor Vehicles Act. 

Loss of No-Claim Bonus

When you don’t file a claim for years and years, the benefits are accumulated in the form of no-claim bonus. A person is eligible to get the no-claim bonus after a certain point of time. If your policy is lapsed for 90 or more days, the benefit of accrued no-claim bonus is lost. The no-claim bonus can also be transferred to your new two-wheeler if you are buying one. However, one cannot transfer it if the policy is lapsed.

Legal liabilities

A comprehensive two wheeler insurance policy covers you against all types of threats including the ones caused by human beings and calamities. If your two-wheeler is damaged when your policy is lapsed, the entire cost of repairing your two-wheeler has to be borne by you. If you meet with an accident on your two-wheeler, you could be framed for a couple of reasons; first one is for negligent driving and the second one is for your lapsed policy. You bear a lot of financial loss which could ruin the peace of mind of your family.

Lengthy process

If you want to make your lapsed policy active, you have to go through a time consuming process. The procedure of renewing a lapsed policy is as good as buying a policy. You may have to pay a higher amount to renew your lapsed policy.

[Source: https://www.reliancegeneral.co.in/Insurance/Blogs/Two-Wheeler-Insurance/What-Happens-When-You-Do-Not-Buy-Two-Wheeler-Insurance.aspx]