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Is bike insurance mandatory for 5 years

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Published on February 14, 2022. EST READ TIME: 3 minutes

Two-wheelers are more affordable than cars, and easy to drive and handle, which makes it a great choice for commuters in both towns and cities. Further, they are more fuel efficient, and there are no parking hassles. But the increasing number of two-wheelers on the roads are also leading to more accidents than ever. In fact, a Supreme Court Committee on road safety observed in 2018 that nearly two-thirds of vehicles in India are uninsured. Which means, victims generally do not receive compensation as the other vehicle may be uninsured. Legal representatives of the victim end up running from pillar to post to obtain some form of relief from the offending, uninsured party.

This is the reason why the government has made long-term third-party insurance mandatory for all new two-wheelers in the country from September 1st, 2018. And since it is easy to buy bike insurance online these days, following this rule is no hassle at all.

How has the law on third-party insurance changed?

Third-party bike insurance was always mandatory. It was set in place to ensure that the society can function interdependently, given the unpredictable nature of accidents.

However, the third-party liability insurance policy was valid only for a year, requiring annual renewal – a manual intervention. As is the case with manual interventions, one can easily forget to renew their insurance on time, or wilfully delay it, or outrightly avoid renewing the insurance. All of which aren’t ideal scenarios for the society at large and especially accident victims.

Now though, new two-wheelers come with a 5-year third-party liability insurance plan, which needs to be paid along with the purchase of the bike. The amendment to the Motor Vehicles Act of 1988, therefore, ensured that vehicles would be insured for longer, thereby increasing the number of insured vehicles on the road, at any given time. This ensures that victims will get the compensation they are entitled to, while reducing the hassles that they may face.

Also note that it’s not just two-wheelers that come with a long-term third-party policy these days. New cars must be bought with a 3-year third-party liability policy, thereby increasing the upfront cost of owning a vehicle, but ensuring more vehicles are insured, at a given time.

Do you need to get long-term comprehensive insurance as well?

Comprehensive bike insurance includes both third-party liability and own damage premium, the latter is annually renewable to keep upfront bike costs low. Therefore, you now get multi-year comprehensive insurance packages that include 5-year third-party liability, and 1-year own damage insurance component. That way, even if you forget to renew your own damage component, you remain covered, and can legally drive on the roads. But renewing your insurance has never been easier.

How can you renew your long-term bike insurance?

You can renew bike insurance online easily, as most insurers have resorted to digitalisation to facilitate ease and transparency in insurance adoption. Simply log onto the insurer’s website and browse through the plans on offer. Select the plan and upload the necessary documents and details. Make the payment, and before you know it, you’re protected.

What are the benefits of a long-term bike insurance plan?

Firstly, you enjoy lower premiums, when compared to renewing your policy every year. You also avoid paying fines as you’re insured. And most importantly, you’re always protected financially against accident-related losses.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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