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Bikes are more than just a necessity. They signify social status. Since everyone wants to outdo the other, people are buying expensive bikes. The WHO stated that approximately 230000 people in India die from road accidents every year, with most of them being bike accidents. The accidents with minor injuries and damage to property are also increasing. Sometimes, the accidents might not be anybody’s fault, arising from a blind spot obstruction. Without proper insurance, it is hard to find someone besides the victim for financial aid.
Bike insurance covers damage from theft, accidents, natural disasters, injuries, and even death. Bike insurance, prescribed by the Government of India, is a mandatory requirement for all bike owners. According to a recent directive by the Supreme Court, a five-year third party insurance policy is necessary for all new bikes before hitting the streets. Failure to comply with the law will result in hefty fines and penalties.
According to the Indian Motor Vehicles Act, 1988 all bike owners must acquire a third-party bike insurance. It means that if anyone or any vehicle or property is injured or damaged with your bike by accident, the insurance will deal with the financial costs and legal charges. However, a third-party bike insurance does not cover up the costs of damage at your end. You will require a comprehensive bike insurance coverage for damage to your own bike or yourself in person. Comprehensive bike insurance, while not compulsory by Indian law, is necessary for your safety. It helps you cover costs that may involve natural disasters, mob riots, theft, or self-ignition. Bike insurance provides you with legal and financial stability.
Along with signing the declaration and filling up the bike insurance form, you also need to provide some documentation to support your claim. These include an attested copy of the ID proof, an attested copy of the proof of residence, vehicle registration certificate copy and passport-sized photographs. If you are buying a bike on loan, you also need to submit income proof. Furthermore, the original address proof and identity proof are required for verification.
Comprehensive bike insurance does not cover cases involving drunk driving, normal wear and tear due to ageing, riding without a legal or valid license, any damages incurred when the insurance policy is no longer active, mechanical or electrical breakdown, and using private two-wheelers for commercial purposes.
The main drawback of a third party bike insurance is that it doesn’t include coverage for own damage due to accidents. The owner needs to pay the cost for repairs of the bike. Third-party bike insurance is valid within a limited geographical location.
After the initial insurance policy of five years is over, you need to renew the insurance. You can either prefer to stay with the same insurance company or opt for another one. It is preferable to opt for a multi-year policy online, as it offers a better discount. Renewal of bike insurance policy is essential. If your bike insurance is not active, you cannot make claims, and get coverage against liabilities to you, the third party and damage incurred, or theft. You will also find yourself in a worse position legally for not having bike insurance. Traffic police these days ask for papers, license, insurance, and check how cautious you are to safety. There are huge repercussions, with fines sometimes totalling over INR 20,000.
An online application is more advantageous than applying for bike insurance offline.
Bike insurance uses a small recurring premium and helps us in times of need; financially, and legally. One can never be too careful; accidents can happen anywhere, and most insurances only cover so much. Sometimes, all it takes is simple bike insurance to set things straight.