Consequences of Not Buying a Two-wheeler Insurance Policy

Riding Without a Motor Insurance Policy: Consequences You Must Be Aware Of

Whether you feel it is an expensive purchase to get an insurance policy or you have missed the timeline to renew your motor insurance plan, the consequence of riding a two-wheeler in India without a valid insurance policy is something you would always want to avoid.

Let’s take a look at some of the consequences of not having a valid two-wheeler insurance policy:

Legal Consequences: Fines, Penalties, and More

Under the Motor Vehicle Act 1988, every vehicle owner must have at least a third-party motor insurance policy. A failure to do so can lead to fines and penalties. According to the Act, two-wheeler insurance fines include:

• If you are a first-time offender, you are liable to pay a fine of ₹2000.
• If you are a second-time offender, you are liable to pay a fine of ₹4000 and/or imprisonment that can extend up to 3 months.
• Confiscation of the vehicle in certain cases.

Zero Coverage Against Damages

Not keeping your vehicle insured means no coverage against damage. In an unfortunate event, if your vehicle gets damaged due to an accident, theft, fire, explosion, etc., you have to bear the cost of the damage all by yourself.

This might not seem daunting at first, but once you have faced the high repair costs in India, you will understand how they can become a financial burden.

Facing Third-Party Liabilities

A comprehensive two-wheeler insurance not only covers damages done to your vehicle, but also steps in if your vehicle causes damage to third parties or property. In the absence of an insurance plan, you have to face third-party liabilities without any help. This includes high out-of-pocket expenses and legal liabilities.

Loss of No Claim Bonus

In case you fail to renew your two-wheeler insurance in time, you end up losing the no-claim bonus. Not just this, you might also have to deal with higher premiums in the future due to a fresh inspection of your vehicle.

What is No Claim Bonus? A no-claim bonus is a benefit your insurer offers for not raising any claims during a policy year. You can avail premium discounts of up to 50%.

Stressful Driving Experience

Not having your vehicle insured can make driving stressful. You are constantly worried about accidents, dents, and damage. This can also become a road safety hazard.

The Hassle of Purchasing Insurance in the Future

When you have been riding your vehicle without a valid insurance policy, purchasing a policy in the future becomes a hassle. This is simply because, when you decide to purchase motor insurance in the future, your insurance company might ask you to provide details of the earlier policy. In the absence of such documents, you might end up paying a higher premium for lower coverage.

Picking the Right Motor Insurance for Your Two-Wheeler

If you are purchasing motor insurance for your new vehicle or an old one, it is important to pick the right plan. Remember that one size doesn’t fit all, and therefore, you need to do a personal assessment at the time of purchasing the policy.

Here are a few considerations to bear in mind:

Analyse Your Vehicle’s Need

Analyse the kind of coverage your vehicle needs. Depending on the vehicle type, make, and model, age, location, etc., the coverage required keeps changing. So ensure you know what is best for your vehicle.

Understand the Coverage and Exclusions

Every motor insurance plan comes with a set of inclusions and exclusions that you must check thoroughly.

Think About the Premium

Premium is the amount you have to pay regularly to keep the policy active. Think about the premium amount and ensure that there is a balance between the kind of coverage you are getting and the premium you have to pay.

Choose a Reputed Insurance Company

You must pick up a policy from a reputable motor insurance company. This ensures that the claims under your policies are settled seamlessly during times of need. You can trust Jio Insurance Broking to bring the best insurance providers under the same platform for you to explore and compare.

Did you know that the Insurance Regulatory and Development Authority of India releases an annual claim settlement report of every insurance company that you can check before purchasing the policy?

Pick Add-Ons Smartly

Add-ons are additional benefits that you can add to your existing motor insurance policy with a minimal additional premium. Some popular add-ons include zero depreciation, return to invoice, daily allowance, etc.

Final Words

Now that you are aware of the multiple losses and complications you face for not purchasing a two-wheeler insurance policy, you must have understood that it is imperative to get the policy in time. With digital platforms, purchasing policy has now become a completely seamless experience.

Trust Jio Insurance Broking to help you get one of the best deals when purchasing a motor insurance plan.

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