There is no dearth of people who think of insurance as an unnecessary expenditure in India. Many buy it to save on taxes only and rarely understand its benefits and importance. The same goes for bike insurance. Many do not bother to even purchase it. Still, many others buy it initially but do not care to renew it on time and allow it to lapse. According to statistics, about 75% of two-wheelers on the road drive with a lapsed or no insurance.
Regardless
of the reason, riding without valid bike insurance has serious consequences
that must be averted at all times. Here, we list out a few of those nasty
consequences to make you aware of the importance of having valid insurance for
your two-wheeler.
- You might need to pay hefty
penalties
All road and traffic safety rules in India are governed by the Motors Vehicle Act. According to them, riding your bike on the Indian roads without a valid and active bike insurance is an offense punishable by law. If you get caught riding a bike without valid insurance, you are liable to be heavily fined and even imprisoned. You face the threat of being made a penalty of up to Rs. 5000 or be imprisoned for three months. While hiring the best criminal attorney you can find will help with this, it’s still not a position you’ll want to be in.
- You become legally liable
According
to law, you must have mandatory third-party insurance for your bike which
covers all damage costs incurred by the third-party involved in an accident
with you. The cost will be reimbursed by the Insurance
Company if you
were responsible for the accident. But without insurance, you would be legally
liable and need to pay the damage cost from your own pocket. Your finances can
get completely down the drain if you also need to pay compensation to the
third-party because of the death consequence of the accident. Given that, it is
a safer and better way to get your bike insured and be protected.
- You will need to pay losses
for your own damage
The law
has made it mandatory to purchase third-party insurance only. It does not
provide any protection to you and your bike if involved in an accident. You
need to buy a comprehensive insurance policy for the same. A comprehensive
insurance protects you and your bike against accident damage, repair costs,
personal injury costs, loss of bike due to theft, natural calamities, mand-made
disaster, etc.
Compared
to the bike insurance premium cost, the financial advantage and benefit that
you receive are unparalleled. Moreover, you simply cannot match the mental
peace of mind and security that comes with an insurance plan.
But
without this protection cover; you will need to bear all the financial burden
by yourself. Be it bike repair to hospitalization cost to complete loss of your
bike; you will not be able to recover a single dime but would be required to
pay more from your pocket. In some cases, the financial burden can be so
debilitating that it can seriously impact your lifestyle as well. Given that,
it is much better to protect your assets and self with the comprehensive bike
insurance plan.
- Loss of No Claim Bonus
Bike
insurance is a safety net that none of us wish to use. While the number of bike
accidents is on the rise; there is also no dearth of people who ride their
bikes with the utmost care and caution. A bike insurance recognizes this care
and rewards such responsible riders. If any policyholder has not made any claim
during the policy term; then they are rewarded with a no-claim bonus at the
time of policy renewal that can be used to reduce the payable premium amount.
This discount increases every year and even reach up to fifty percent of the
premium amount in five years.
However,
if you fail to renew your bike insurance policy in time and fail to renew it on
time, you lose out on this vital bonus. On the contrary, when you go ahead to
renew a lapsed policy or try to purchase a new policy all over again, you are
required to pay a higher premium than before as you are seen as an
irresponsible person with a higher risk factor.
Wrapping
up
As is
evident from the above arguments, you have nothing to gain but everything to
lose with no or lapsed bike insurance policy. You have only unpleasant and
financially debilitating consequences to face without a valid and active bike
insurance policy. Hence, it is a smart move to be careful and mindful to have
an active bike insurance policy at all times.
