Under the Motor Vehicle Act, 2019, it is compulsory for Indian bike owners to at least have a third-party liability insurance policy. If you fail to do so, you will have to pay a hefty fine. In some worse cases, you can also end up in jail. You must be wondering why two-wheeler insurance is important in our country. Well, read the abstract mentioned below and you will get the idea.
Why Bike Insurance is Mandatory
One of the best ways to answer this question is that accidents are uncertain. We live in a world of uncertainties and you may never know what happens on the road. This is the reason why buying bike insurance online is important as it will not only protect you financially, but it will also protect the person who got involved in the accident caused by your vehicle. There are two types of bike insurance available in India, Third-party liability and Comprehensive plan. The third-party liability plan is mandatory, whereas, Comprehensive plan consists of wide coverage that also includes mandatory cover.
How Does Bike Insurance Protect You?
There are several ways by which your bike insurance can protect you and your bike. Given below are some of the ways:
1) Legal Liabilities
In case a third person gets hurt in an accident caused due to your insured vehicle, you are legally liable to pay for the damages. This is where third-party liability insurance will come into action as they will protect you against such liabilities. On your behalf, your insurance provider will take care of the legal liabilities.
2) Financial Expenditure
In case your bike gets damaged due to natural calamities or gets ruined due to fire that is caused during riots, your Comprehensive Bike Insurance Plan will take care of the repairing cost. You don't have to spend money from your pocket as your insurance will cover it. We are on the topic of coverage, so let's talk about what does your insurance plan covers:
What Does A Two-wheeler insurance Policy Cover?
As mentioned earlier, the coverage depends on the type of plan you opt for. A basic third-party liability plan provides minimal coverage. Whereas, a comprehensive plan with add-ons will give you wide coverage. Given below are the things that are covered under both plans.
Third-party Liability Cover
This plan only covers the following things:
1) Legal Cover
If you injured or damaged the property of a third-party, you are liable to pay for it. This plan covers you as it will offer monetary compensation to the third party.
2) Personal Accident Cover
In case of a permanent disability or death due to a bike accident, this plan offers a personal accident cover.
A Comprehensive Plan offers the following things:
1) Loss Due to Natural Calamity
Damage to the vehicle caused due to natural calamities like flash floods, earthquakes, fire, cyclones, etc. will be covered under this plan.
2) Loss Due to Man-made Calamity
Damage to the vehicle caused due man-made calamities like riots will be covered under this plan.
3) Loss Due to Theft
In case your insured bike gets stolen, your insurance company will give you compensation based on the Insured Declared Value (IDV) of the bike.