Why a majority of the bike owners do not have bike insurance?

• Protect yourself with long-term third party cover
• Enhance you cover with add-on covers
• Buy/renew your policy online without hassles from the insurers website

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.

What does the Motor Vehicle Law say?

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.

What you should do:

• It is high time that each of the vehicle owner considers the importance of owning a two wheeler insurance. Not only is it causing trouble to the owners of the bike by not having one, but it is causing a huge loss to the IRDAI as well.
• The IRDAI has made the premium of third-party vehicle affordable to all. The IRDAI is encouraging more bike owners to buy the minimum cover with facilities like daily cash premium so that they can pay the premium at their convenience.
• If you wish for more coverage, you can also choose the comprehensive policy with either one time premium or in instalments like monthly or quarterly as agreed upon with the insurer.
• It’s never too late to buy an insurance, so do not wait for an accident, mishap or theft to happen and regret not having a bike insurance while paying those bills.
• If you already own a bike insurance, then do not neglect renewing the policy. You can put the reminder dates in your phone or can check the status of your policy online to ensure that you renew it before it expires. Because riding without a valid insurance is equal to having no insurance at all.
• Buy a 2 wheeler insurance that provides maximum cover with minimum premium and check out the discounts online from various insurers so you can save money and time.
• The IRDAI has passed an order to the insurance companies to check for vehicle insurance with random checking. If you have noticed, the police are stopping vehicles randomly for insurance checking especially in metropolitan cities. So do not wait till you are fined. Get your bike insurance today.