Apart from the fact that motor insurance is mandated by the law, it is very important to understand that
two wheeler insurance is also the need of the hour for many reasons. However, one of the primary reasons for anyone to have motor insurance is to protect oneself from the third party liability cost.
For instance, if Mr X while driving a motorcycle meets with an accident and does not has motor insurance; then the entire cost of the damage caused due to accident will have to be take care by him. Which means, even if there is a loss of life or a third party is badly injured, Mr X will not only have to pay for the damage to his vehicle but also the liability cost towards the third party.
However, in the same scenario, if Mr X has a motor insurance, the entire cost of damage and third party liability will be taken care by his two wheeler insurance policy.
When you buy two wheeler insurance, the amount you pay as the insurance premium is much less than the total sum insured.
In general driving a two-wheeler is considered as riskier than driving a car, because an individual on a motorcycle is more exposed to danger than someone seated in a car. And two wheeler insurance offers you risk coverage towards self physical injury, damage/loss of the vehicle and third party liability.
And the money problems do not necessarily end there. As terrible as it would be to lose your license, or have to pay a steep fee, it would be even worse to have to take care of all the charges that can add up as the result of an accident. You want insurance so that an injured person or his or her insurance company will sue your insurance company, and not you.