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]

Why should you purchase a good 2 wheeler insurance plan?

Two-wheeler is the basic mode of transportation for millions of people across the nation. In India, affordability is not the only issue as even the people who can afford the cars prefer to travel on motorbikes to avoid getting stuck in the snarling traffic. There is no second thought that two wheelers come cheaper than four wheelers, with better mileage, savings on fuel, flexibility to travel and beyond that the happiness of those joy rides anytime and anywhere. So you cannot afford to lose it for silly reasons and the owner gets penalized for it.

To keep your vehicle safe from unnecessary problems, nature’s fury, manmade damages etc. it is better to buy a suitable 2 wheeler insurance policy. By acquiring an insurance policy, one can get the compensations for natural calamity or other reasons including, accident, fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide. Bike insurance offers you risk coverage towards self-physical injury, damage/loss of the vehicle and third party liability. Your bike insurance promises the insured, the longevity and safety to your beloved ride. It offers the necessary financial back up during uncertain events like third party damages, accidents or natural and man-made incidence. It acts as real protection during such crisis time.

Here are few reasons to own a suitable bike cover:

It offers a financial cover against damage or loss during natural calamities like flood, earthquake, tornado, etc. or during man-made riots or burglary incidences.

The third party cover protects you against issues arising out of injury/death or property damage of third party vehicle.

Beyond this it’s the mental peace of mind that you have a sound financial back-up to face such crisis. If there is total loss to your vehicle you get the necessary finances to buy a new one.

General Insurance segment cater hundreds of customized policies to customer that will fit in their budgets and cover exclusive needs. Most people just run into the purchase of policy without understanding the necessary terminology that will help them ease the process of 2 wheeler insurance policy purchases. Let’s understand the few necessary ones:

Premium

Premium is money paid at regular intervals usually yearly towards the coverage of policy. It depends on various factors like city of registration, vehicle make and model, age of vehicle, date of purchase, etc. IT is decided and regulated by IRDAI and there is not much variation across various companies.

Cover

This is the financial protection value provided to your bike against damage or loss due to natural or man-made calamity along with third party liability. It differs from company-to-company and policy-to-policy. It is calculated on the basis of Insured Declared Value decided upon by the insurance company after judging the value of your bike on certain parameters.

Exclusion

These are situation being not entitle to file a claim. Normal wear and tear, damage due to drink and drive, accident without owning proper license, or due to war or nuclear explosions etc. will not be included in your vehicle policy.

No Claim Bonus

These are those reward points that you get for not claiming the 2 wheeler insurance policy in preceding years. You can accumulate bonuses upto 60-70% in consecutive non- claim period. It is advisable don’t claim for petty scratches or dents instead wait for the amount to get accumulated and utilized it for lowering your premiums or higher claims.

Documentation

Whenever there is a claim on your policy you need to have set of documents required for making claim like vehicle registration copy, photocopy of insurance and FIR, seismic report if earthquake, or weather reports if natural disaster etc. So, you should keep the necessary document handy and get scanned copy of reports beforehand for hassle free claims. Choose your policy wisely making sure it suits your needs the best.