Why is it Mandatory to Buy a Bike Insurance Policy in India?

Key Reasons to Have a Mandatory Bike Insurance Policy in India

A two-wheeler offers several benefits. It is convenient and helps you escape heavy city traffic; however, that also highlights the fact that there are certain risks involved, making Here is why it is mandatory to have a bike insurance plan in India.

1. The Motor Vehicle Act of 1988 makes it mandatory for all bike owners to have third-party insurance. Caught without valid insurance can get you into legal trouble.
2. Unexpected road accidents can be dangerous for the rider, the vehicle, and the third party, leaving a financial burden on all involved. Here, the mandatory insurance policy can prove quite useful in covering repair costs and other liabilities.
3. Comprehensive bike insurance plans can also protect you against damages caused to your vehicle in cases of earthquake, fire, and other calamities.
4. The price that you pay towards the annual premium would often be less than the expenses you will have to bear in case of an accident. By having a suitable policy, you can safeguard your finances.

How Does Having a Bike Insurance Plan Help?

As mentioned, when you buy a bike insurance plan, you protect your vehicle and yourself in several ways. Here's how it works.

1. Protection Against Legal Liabilities
   In case of an accident where your bike hurts someone else or causes damage to someone else's property, then you're legally liable to cover the damage costs. Here comes third-party bike insurance. The mandatory third-party liability cover helps you cope with the legal liabilities based on their terms and conditions.
2. Protection Against Financial Expenses
   In cases or events where your bike gets damaged because of a natural calamity like earthquakes, floods, and more, you may use comprehensive bike coverage to manage your repair costs. Here, you do not have to worry much about spending from your pockets.

Coverage of Your Two-Wheeler Insurance Policy

Now that you know how buying a bike insurance plan can help you, let's move ahead. Let's see what options you have, how they differ, and how they benefit you.

1. Comprehensive Bike Insurance
   Your comprehensive bike insurance covers damages caused by accidents, theft and natural calamities like fire, earthquake, and more. It also includes personal accidental coverage, third-party liability, and damage costs for complete protection. Comprehensive plans also give you the option to increase the coverage with add-ons.
2. Third-party Insurance
   Third-party Insurance is compulsory coverage that comes in handy to manage legal liabilities from unexpected accidents and third-party damages caused by the insured bike.
3. Standalone Damage
   Did you opt for third-party coverage and are now worried about the costly repairs to your bike? Then maybe going for your own damage insurance can help. These are designed to cover heavy costs incurred from vehicle repairs, replacement of parts, and more caused by a theft, a calamity, or an accident.

Wrapping Up

It is important to understand the importance of these two-wheeler insurance policies. When you buy bike insurance, you don't just protect yourself legally from unwanted penalties; the benefits go way beyond that. You make sure to have a financial shield in case of unexpected situations and have the required coverage for your vehicle's damages and your own.

However, make sure to understand the factors affecting the premium of your bike insurance plans. This includes factors like the age of the vehicle, age of the insured, vehicle’s model, coverage, insured declared value, and so on. Further, before you avail of bike insurance, make sure to compare different policies and choose what best matches your requirements. At Jio Insurance Broking, you get to explore different options and the best motor insurance from top companies. Additionally, you enjoy a wide range of add-ons to make your policy more comprehensive and cost-efficient.