It is quick and easy to buy a two-wheeler these days with an unending list of financial institutions waiting to provide you the loan to buy the vehicle of your dreams. Needless to say its affordability and convenience is what makes it such a popular choice for many two-wheeler enthusiasts. Whether you are buying a used bike or scooter or a new one, the two wheeler insurance is a mandatory cover that every bike owner should have according to the law.
Recent studies by General Insurance Council of India have shown that more than 60% of the vehicles travelling on the roads do not have a two wheeler insurance. Many organisations conducted studies to know the reason for neglecting two wheeler insurance which provides a wide range of protection against many perils. Many of the bike owners were cited saying that it is a waste of money, the premium is too high, renewing the policy is tedious, we travel shorter distance so it is not required and others believed it is just not required. Two-wheelers contribute to nearly 70% of the traffic and they are the most vulnerable vehicles which account for nearly 30% of road accidents and deaths as reported by the Ministry of Road Transport and Highways. Every year crores of vehicles come out of showrooms out of which less than half percent of vehicles are insured.
At the first instance of bike purchase, there is not much the buyer has to do in order to buy an insurance. The dealer hands off the bike insurance to the buyer usually with a comprehensive plan or a third-party cover if the buyer requests for it. Despite the IRDAI making third-party policy as a compulsory cover for two-wheelers, many two-wheeler owners have failed to buy it. By the end of first policy year at the time of renewal, it is observed that bike owners usually fail to renew their policies out of sheer negligence as they are unaware of the two wheeler insurance importance.
The Indian law of Motor Vehicle Act 1989 makes it very clear that every vehicle travelling on the roads must be insured with a relevant and valid motor insurance. At least the vehicles should have a third-party coverage to pay for the damages caused to another person in case of accident or mishaps. According to the MVA, the defaulter will be penalized with Rs.1,000 or 3 months imprisonment for not owning at least a third-party cover and the DL of the defaulter might be canceled. The IRDAI regulates the third-party cover premium every year and it is a fixed premium therefore it cannot be altered by any insurer.
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