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Riding Without a Bike Insurance? – Understanding the Consequences

In Automotive
March 19, 2020
Two Wheeler Traffic Rules in India for DUMMIES

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.

  • 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.

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