How can your bike insurance policy help you?

by Kanika Shelatkar Insurance Consultant

If you are a two-wheeler owner, then you would be aware of the law that states that purchasing insurance is mandatory. In fact, you are not permitted to ride either a motorcycle on Indian roads if you do not have two-wheeler insurance. You may pride yourself in being a safe rider but you cannot really predict an accident, nor can you predict when your vehicle can cause damage to another’s. While it is mandatory to purchase bike and scooter insurance, you should also be aware of how the insurance policy can help you.

Insurance protects you against accidents and man-made disasters: If you are in an accident and your bike endures damage, then the cost for repairing the damages may be covered by your insurance provider. Your insurance also covers you for incidents like thefts and burglaries. Moreover, you could receive coverage against man-made incidents like riots and strikes in which your vehicle endures damage. Your bike insurance provider may either replace your vehicle or cover service costs related to such man-made incidents.

Insurance also protects you from natural calamities: Typically, you do not qualify for insurance in incidents which are referred to ‘Acts of God’. This means that if something happens to your home or your place of business due to a natural calamity, you cannot make an insurance claim. However, this does not apply to bike or scooter insurance. You could receive protection if you lose your vehicle or it endures damage owing to natural calamities like floods, earthquakes, landslides, fire, cyclones and so on.

It prevents you from violating traffic laws: As per traffic laws, you should present your driving license, your vehicle registration documents and your insurance documents if you are questioned by traffic authorities. You could be charged for violating traffic laws if you are caught riding without any of these documents. When you buy bike insurance, you are following the laws of the land. But it is just as important to renew your insurance policy before it lapses. If you are found riding your bike without insurance, you could incur a hefty fine and could also face possible jail time.

It safeguards your legal interests: The Motor Vehicle Act of 1988 states that it is mandatory for vehicle riders to have third-party insurance. According to this act, if you cause any damage to another vehicle or its owner, in an accident, for instance; your insurance provider pays for the damages caused. Similarly, it protects the party causing damage to your vehicle in case of an accident. If you hold a valid two-wheeler insurance policy, you are not liable for bearing costs related to the accident and the case can be referred to your insurance provider.

You can benefit from a no-claims bonus: You are rewarded by your insurance provider for every year in which you do not make claims against your bike or scooter insurance policy. The reward offered is referred to as a no-claims bonus under which the insurer reduces the premium paid against the same insurance policy as the years go by. To benefit from the no-claims bonus, you must ensure that the insurance policy for bike or scooter is renewed before it lapses.

Having a bike or scooter insurance helps you gain a sense of security each time you are out on the roads. So even though you’ve not yet felt the need to encash your insurance policy, you must ensure that you renew your insurance every year. Two wheeler insurance renewal can be done online as well as by visiting the office of the insurance provider or their agents.