Why Is It Mandatory to Have Bike Insurance in India?

motor-bike-insurance

A Brief Overview 

It is mandatory for all bike owners to be in possession of and have valid bike insurance at all times. This is owed to the fact that accidents can occur at any point in time and are unpredictable in their occurrence.

Understanding Bike Insurance 

Bike owners are entitled to avail of two forms of bike insurance policies which include those that are third-party liability-based and those that are comprehensive bike insurance policies. It is mandatory to have a liability-based policy as a bike owner. The comprehensive bike insurance policies available are more expensive in their scope and what they cover. They account for all that is mandatory in addition to more coverage. The basic premise that follows is that regardless of the plan chosen, mandatory coverage is provided.

Understanding the Protection Bike Insurance Provides 

By availing of two-wheeler insurance in the form of a bike insurance policy, bike owners are protected against the following.

Legal Liabilities – In the event that a biker loses control of their bike and causes harm or injury to a pedestrian, fellow driver on the road, or causes damage to another party’s property, the bike owner is held accountable to pay for the damage and injuries caused. With the aid of a bike insurance policy that exists as a third-party liability policy, bikers are provided with financial coverage and protection against such liabilities. The insurance company that issues said the policy is then responsible for managing the legal liabilities on behalf of the biker based on the terms and conditions in place.

Financial Expenditure – Should a bike get damaged owing to a natural disaster such as a flash flood or via a riot, a comprehensive bike insurance plan will allow for coverage to be provided to get the bike repaired without having the policyholder having to spend a vast sum of money on the same.

Grasping all that Two-Wheeler Insurance Policies Cover 

Two-wheeler insurance policies hold within their realm the following.

  • Third-Party Liability Policies provide coverage for legal cover.

Comprehensive Coverage Policies provide coverage for legal liabilities in addition to the following.

  • Losses incurred due to natural calamities – these may range from flash floods and cyclones to fires.
  • Losses incurred due to manmade calamities – these include riots that are capable of damaging a city’s infrastructure.
  • Losses owed to theft are common in rural, semi-rural, and urban areas. Comprehensive plans provide coverage against the same.

Those that avail of comprehensive bike insurance plans can also pay for add-ons that are availed at an additional cost. They can focus on zero depreciation, pillion rider coverage, invoice protection, and no-claim bonus protection among others.

Conclusion

Those that own and ride bikes must at all times have a valid bike insurance policy in place owing to the unpredictable nature of accidents. Protection against legal liabilities and financial expenses are some of the benefits enjoyed by the holders of bike insurance policies. An array of bike insurance policies are available at Finserv MARKETS.

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