Believe it or not, not having a bike insurance plan can impact your finances significantly. This is because, in cases of theft, natural disasters, road accidents, or severe vehicle damage, you will be responsible for paying for repairs. All these repair expenses will need to come out of your pocket and savings account if you do not have own-damage or comprehensive two wheeler insurance.
With that said, having bike insurance is also a legal mandate. Although the legal obligation is limited to a basic third party bike insurance, it is always recommended to go for a comprehensive cover.
Here is more about bike insurance.
What is a Bike Insurance Policy?
Bike insurance is a type of motor insurance plan that provides financial and legal coverage for you and your bike. This coverage can vary depending on the specific bike insurance plan you purchase.
For example, third-party bike insurance offers coverage for damages only to the third-party individual. However, a third-party plan with an own damage cover will cover costs for you and the third party for a higher premium.
You also have a comprehensive insurance policy for bikes that combines the benefits and features of a third-party plan and an own damage cover under a single policy. It also offers additional add-on covers for specific damages.
What Happens if You Don’t Have Bike Insurance?
According to the Motor Vehicles Act, it is legally mandatory for all bike owners in India to have two-wheeler insurance if they want to drive freely on public roads in India. If you are found driving without one, it can incur legal consequences.
Here are some consequences you can face legally and financially if you don’t own bike insurance.
- Legal Liabilities
In case of an accident where the other person or third party is severely injured, you may face legal liabilities if you were found to be at fault. This can result in lengthy and expensive court trials, which can carve out a good chunk of your savings.
- Penalties and Fines
As stated, it is illegal to drive without a bike insurance policy. This is because when you are pulled over by the traffic police, it is one of the documents you must present to authenticate your status as a law-abiding citizen.
Suppose you are found driving without an insurance policy. It can incur a lot of legal consequences, like a fine of ₹2,000 if caught driving without a bike insurance policy. If it is a second offence, the fine amount can go up to ₹4,000 or imprisonment for up to three months.
In more severe cases, the authorities may even seize your driver’s licence.
- No Financial Coverage
In case of damages from accidents, natural disasters or even theft, which can result in a total loss, purchasing a bike insurance policy can provide financial coverage.
For example, if your bike is stolen, and you own a valid insurance policy for your bike, the insurance company will reimburse you with the full IDV (Insured Declared Value) amount.
Similarly, if your bike needs repairs after an accident, your insurance company can pay for those repairs or reimburse the repair costs.
Where Can I Get an Insurance Policy for My Bike?
Two-wheeler insurance is often offered by dealers when you first purchase your bike. This eliminates the need for most bike owners to seek out insurance plans independently. You can also purchase bike insurance online or in person. Most people today prefer to do it online as it is much more convenient and involves less paperwork.
Many insurance companies also offer online insurance for two-wheelers on their official websites. They even let you compare plans and provide other resources, like online calculators, before you purchase bike insurance, so you should have no problem finding a plan that suits you.
For example, you can get third-party bike insurance from Tata AIG’s official website, which has all the resources stated above. All you need to do is provide the necessary KYC documents on your purchase, and you are good to go!
As you can see, you can experience multiple losses without bike insurance, so it is imperative that you get one if you don’t already have it. This way, you can safeguard your finances, legal liabilities, and time. But while purchasing an insurance policy for your bike, try to get a comprehensive one. It may cost you a little more than basic third-party cover, but it offers so much more.