How can your bike insurance policy help you?
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.
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