It is a known fact that two wheelers are more prone to experience traffic accidents compared to other vehicles. The fine balancing act of riding a two-wheeler on Indian roads, infamous for their potholes and traffic congestion is no small feat. While there is not much you can do about the state of affairs on Indian roads, you can certainly ensure exhaustive coverage for yourself and your two-wheeler. Besides riding cautiously every time, you must buy long-term bike insurance to enjoy protection in the face of a mishap. If you already have bike insurance, renew it on time to enjoy uninterrupted benefits.
The Government has introduced new long-term bike insurance valid for five years. Due to the rising number of two-wheelers on Indian roads, the Insurance Regulatory and Development Authority of India (IRDAI) has made five-year bike insurance mandatory. This long-term bike insurance will cover your motorcycle for damage from unforeseeable occurrences such as theft, accident, and third-party liabilities.
The 5-year Insurance Policy
In September 2018, the IRDAI changed its policy in response to the Supreme Court’s decision and made bike insurance for five years mandatory. By doing this, the IRDAI hopes to insure as many two-wheelers as possible and reduce the burden of vehicle accident damage with expired or no insurance. It is important to note that 5-year two-wheeler insurance plans also need third-party coverage. Under the Motor Vehicles Act of 1988, you must have third-party insurance to ride your bike on Indian roads. You risk paying hefty penalties and losing your licence if caught riding a bike without third-party insurance. In case you have bike insurance, renew it before expiry to avoid severe consequences.
Types of Bike Insurance Policies
Third-party insurance: The most popular two-wheeler insurance does not cover the owner's bike damage. The insurance covers only third-party injuries and damages due to an accident with the insured bike.
Comprehensive insurance: Comprehensive insurance covers the policyholder's two-wheeler against loss, theft, third-party liability, and own damage. It also offers personal accident coverage. Get comprehensive insurance for exhaustive coverage. It also lets you opt for relevant add-on covers to enhance coverage.
Choosing the Right Two wheeler Insurance Plan
Select the two-wheeler insurance policy that best suits your budget and needs. Research and compare policies offered by reputed insurers before buying one. Consider some essential variables when selecting new bike insurance. Assess your needs and scope of coverage when shortlisting long-term insurance for your bike. Remember, comprehensive insurance will give you better protection compared to third-party insurance.
Renewing the Long-term Bike Insurance
If you have bike insurance, renew it easily online. Today, most insurance providers have moved to online platforms for the sales and renewal of bike insurance. This also facilitates transparency and lower operational costs. The law requires all bike riders to have bike insurance coverage. In absence of long-term bike insurance, if your bike meets with an accident and injures a third party or causes damage to their property, you will have to pay for the losses out of your pocket. Here are some things to keep in mind about bike insurance renewal:
According to the newly approved Motor Vehicles (Amendment) Act 2019, driving an uninsured two-wheeler can attract a fine of Rs 2000 or a maximum sentence of three months in prison.
You may quickly renew your two-wheeler insurance coverage online saving you time and effort.
The insurer may reject any claims filed after the expiration of your bike insurance policy.
Your insurance can lapse if you do not renew your bike insurance before the deadline.
You risk losing your accrued No Claim Bonus if you do not renew the policy even after 90 days of expiration.
Advantages of a 5-year Insurance Plan
You may feel that the new bike insurance requirements are a burden. However, you will only gain from it in the long term.
Insurance refund: In most cases, you are given credit for the remaining policy term if you cancel your insurance before it matures. Long-term bike insurance, valid for five years, does not need you to pay for insurance renewal every year.
No insurance challans: With long-term bike insurance, you may use your bike stress-free and without worrying about any insurance-related fees.
Low premium: Long-term insurance always has a lower yearly premium than short-term insurance. Therefore, long-term insurance is less costly. You will also get continuous third-party liability insurance for five years. The 5-year insurance coverage is, thus, unquestionably more beneficial.
No Claim Bonus: This is especially significant concerning the Own Damage Policy. Avoiding making claims on your OD coverage may help you save a lot of money. For instance, if you go five years without making a claim, you will get a 50% discount. As a result, if you have a five-year policy for a two-wheeler, you might now get a sizable NCB.
Less stress: You will no longer be concerned about renewing or remembering your insurance each year, saving you the hassle and time. So, if you have multiyear two-wheeler insurance, you will not have to worry.
Things to Consider When Buying Two wheeler Insurance
Bike insurance company: Selecting a reputable bike insurance provider is essential if you want your claims to process quickly. For ease and solid coverage at a cheap cost, choose an insurer that provides outstanding after-sales services, a smooth claims process, and a technological platform.
Compare bike insurance policies: Before purchasing, compare similar bike insurance policies online. Compare coverage, features, and costs, and choose a plan that promises the best coverage at an affordable price.
Driving habits and risk profile: You should choose insurance that matches your risk profile. Compared to someone with a low-risk profile, you need extra coverage if you ride your bike often. Consider using the Zero Depreciation add-on, which will raise the claim amount by not accounting for the bike's depreciation.
Methods for getting bike insurance: If you have bike insurance renew it either online or offline. These methods of purchase are valid even when buying a policy. When you get long-term bike insurance online, you receive convenient plans at affordable prices. The offline approach requires visiting the insurance company or seeing an agent in person. Remember, the salesperson may pressure you into choosing the coverage you may not need.
Budget for bike insurance: You can customize your bike insurance as per your preference. If you have a low budget for your insurance, avoid setting a greater IDV. Additionally, buying helpful add-ons will benefit you. Remember, the premium will rise with the add-ons, so choose wisely.
Conclusion
Initially, you may feel long-term bike insurance to be a burden or a financial strain, but ultimately it will benefit you. Since you know that insurance is compulsory, make sure you purchase the best policy for your bike.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.
