Is Bike Insurance Mandatory in India?

People often buy bike insurance at the time of buying the bike in India. So, if you have a bike or planning to get one, you must be wondering if it is mandatory to purchase bike insurance. With the rising number of bike users, the concern about road safety also peaks making  it mandatory to have insurance for bikes. And today we will discuss  everything you need to know about bike insurance in India.

There are various bike insurance options available in India.

Two different types of bike insurance are available in India- Comprehensive and third-party. Many people wonder which insurance is mandatory for bikes. So, below we will discuss them and learn which one is mandatory for the bike.

Third-party bike insurance – Third-party bike insurance is the most common insurance policy for bikes in India. The insurance covers all liabilities of third-party damage and loss. It will only cover the loss or damage that occurred to a third-party person, property, or vehicle. According to the Motor Vehicle Act 1988, third-party insurance is mandatory for bikes.

Comprehensive bike insurance – Comprehensive bike insurance is the most valuable and expandable bike insurance that covers both third-party and personal loss and damage in a bike accident. Unlike third-party bike insurance, comprehensive bike insurance covers personal loss or damage due to natural calamities, fire, theft, vandalism, etc.

Undeniable Reasons to Have Bike Insurance in India

If you have/wish to have a bike, you must buy bike insurance as it is mandatory to have bike insurance in India. Besides legalities, bike insurance offers multiple benefits. Below we will share some undeniable reasons to have bike insurance.

 It is mandatory-

The first and most important reason to have bike insurance is it is mandatory. According to Motor Vehicle Act 1988, having bike insurance is mandatory for bike owners (in India) that can cover the basic liabilities of third-party loss and damages due to an accident

Poor road conditions and rash driving-

In India, poor road conditions and rash driving are two primary reasons for bike accidents. Calamity related to such accidents can range from vehicle injury to human injury. It may also cause death in some cases. But if you have insurance, it will cover third-party and personal liabilities (depending on the plan you choose).

Cover against unforeseen events-

Most bike owners in India have limited income sources and any unforeseen event like, loss of vehicles, accidents, damages, physical injuries, etc. can put a financial and metal burden on them. But if you have bike insurance, it can cover you against such unforeseen events.

Third-party liabilities –

Third-party liability is a common issue in bike accidents, whether it is intentional or unintentional. Having bike insurance also helps you cover third-party liabilities including third-party person, vehicle, and property injury.

What Does a Bike Insurance Cover?

Today you can buy bike insuranceonline without stepping out of your home and get protection for your vehicle. Here are some common aspects bike insurance covers.

Third-party liabilities

Both bike insurances (comprehensive and third-party) cover the liabilities of loss and damage of a third-party person, property, and vehicle.

Protection against natural calamities-

Insurances like comprehensive bike insurance help to cover the loss and damage of the vehicle due to natural calamities like fire or flood.

Protection against human-made calamities-

When you buy bike insurance (comprehensive), it provides cover against human-created calamities.  It covers human-made calamities like vandalism, and riot-related vehicle loss or damage.

Personal cover-

Bike insurance policies like a standalone rider or comprehensive bike insurance help to cover personal injuries, deaths or disability-related accidents

Things to Consider Before Applying for a Bike Insurance

Buying a bike or two-wheeler insurance is mandatory in India. And if you are planning to purchase a bike, you must get two-wheeler insurance for your bike. However, you must consider the following factors to get suitable bike insurance.

Type of Insurance

Choosing the right type of insurance is essential to make the most of your investment. Third-party insurance is a basic insurance that only covers the liabilities of third-party loss and damages. Conversely, comprehensive bike insurance covers both third-party and personal liabilities.

Premium

Premium is another crucial factor that you must consider while buying bike insurance. Always compare the premium rates of different insurance policies.

IDV

IDV or Insured declared value is the current value of your vehicle in the market. Always opt for an insurer who can offer high IDV for your vehicle.

Conclusion

In India, two-wheelers like bikes and scooters are the most popular and convenient means of transportation which can easily run on rural allies and congested streets of metropolitan cities.  But the cases of bike accidents and injuries are also high. A 5-year bike insurance mandatory in India protects you from third-party liabilities. Also, you can buy bike insurance or learn more about them online.