After the updates under the Motor Vehicles Act of 2019, both car and bike insurance policies have spiked at an alarming rate. Considering that around 40% of the motorcycles plying on Indian roads are uninsured, this new Act brought about a positive change in the purchasing habits of motorcyclists regarding two-wheeler insurance.
The ground-breaking Act that came into effect on September 1 significantly increased the penalties for driving errors.
Mandatory two-wheeler insurance – its consequence
As per the new law, driving an uninsured two-wheeler can lead to a penalty of Rs. 4000 and one can face up to 3 months of imprisonment. The regulatory change has thus forced two-wheeler owners to rush into getting a new bike insurance policy or renew the lapsed ones. As stated by the Economic Times, there has been a 48.5% spike in motor insurance policy sales within the first month of this implementation.
Furthermore, states like Delhi, Maharashtra and Karnataka have witnessed the highest spike in renewals. In Delhi, its renewal surged from 64% to 94%. Karnataka witnessed the second-highest growth followed by Maharashtra. It has not only been a boom period for the bike insurance companies but also increased the UL Safety index – taking India into the top 150 countries for a safe commute.
Why avail a two-wheeler insurance policy?
There are numerous risks for which an insurance plan can financially cover you. Some of them include –
- Compensation for damages caused to third-party
As per the Motor Vehicles Act of 1988, it is mandatory to avail a third party two wheeler insurance coverage as most accidents in India lead to third-party damage or injury. With a third-party two-wheeler insurance policy from companies like Bajaj Finserv, you are financially covered against damages caused to other individual’s vehicles or property by your insured bike.
With this 2-wheeler liability cover, a policyholder can save both money and time. The insurance policy compensates for any legal liabilities that might arise from an unfortunate event. Plus, you also enjoy coverage against damages caused to your bike by uninsured two-wheelers if the fault does not arise from your end.
- Coverage against natural and human-made calamities
If you avail a comprehensive two-wheeler insurance plan, you can enjoy financial coverage against human-made or natural disasters to your insured bike. Unlike a third party bike insurance policy, a comprehensive insurance policy compensates against damages like fire, floods, earthquakes along with calamities like theft, riots, etc. Hence, it is always recommended to avail this coverage, although it is not a legal mandate.
- Cover against partial and permanent disability from accidents
Apart from accidental bodily injuries, partial or even total impairment can occur from collisions. An insurance plan for two wheelers can get you financially secured against financial losses occurring through such unfortunate events and also bear the cost of treatment.
Furthermore, in the case of deadly mishaps leading to the demise of the policyholder, the insurance scheme also pays compensation to the nominees of the policyholder.
Know how to avail a motorbike insurance policy
Purchasing a bike insurance plan in India is now convenient with the availability of policy purchase online. The digitised eco-system growing in India now facilitates the purchase of motorbike insurance policies online to prospective customers.
All you need to do is log on to the official site of the preferred insurer, fill in the application form with all the necessary details, and pay the premium amount to purchase it online. Additionally, you must also go through numerous third-party sites to compare the various plans and choose the best bike insurance policy that caters to your requirement.
Apart from buying a third party insurance online, you might also take the help of third-party aggregators or brokers to bag you the best deal. Make sure to compare the exclusions and make an informed decision accordingly.