Is Two Wheeler Insurance Compulsory in India? What is the Price Quote?
IRDAI is also known as the Insurance Regulatory and Development Authority of India. And it has recently made it mandatory for all new two-wheelers to be issued with a 5 year insurance for bikes. This means that a 5 year third party insurance is mandatory for 2 wheeler vehicles.
There are also new bike insurance rules associated with this. And today, we are going to help you understand the different aspects of the new bike insurance validity. But before we start, you should note that IRDAI is the highest insurance regulator in India. The organization often makes changes in rules and regulations of vehicle insurance.
The two wheeler insurance for five years has been made by keeping in mind the fact that there is an increasing number of two-wheelers on Indian roads. This means that the number of uninsured bikes and road accidents are also steadily increasing in number. So, to have a cap on the number of conflicts seems like a good solution.
How Do the 5 Years Two Wheeler Insurance Work?
You might find it interesting to note that the change made by IRDAI to make 5 years of insurance mandatory for all two-wheelers was prompted by a Supreme Court ruling. This happened in September 2018.
The whole intention behind this is to make sure that the maximum number of two-wheelers on the roads are insured. Another benefit of this is to reduce the number of cases of accidents with lapsed or expired policies or uninsured vehicles.
It should also be noted that the minimum 5 year tenure is compulsory only for third party insurance plans. This means that if you opt for a comprehensive two wheeler insurance cover, then you can select the policy tenure as 3 years instead of 5 years. Further, a minimum of third-party cover at all times is compulsory under the Motor Vehicles Act of 1988.
How Does the New Rule Impact You?
The biggest impact of this is that when you purchase a new scooter or bike, then you will be issued 3 years or 5 years of the insurance policy. This will be in accordance with the type of insurance that you have chosen. There are many benefits associated with this, including:
- Save on Premium Amount: The total premium amount that one would pay for a long-term policy would be less than the amount that one ends up paying for the same amount of time if the policy was renewed annually.
- Less Stress: There would be no stress about renewing the policy every year or keeping a track of expiry dates. This also saves the time spent on policy renewal.
- No Claim Bonus Benefit: NCB or No Claim Bonus is a discount that is given at the time of renewing the policy. The bonus is provided if no claims are raised during the policy tenure.
- Policy Refund: In most cases, if an individual chooses to terminate the policy before the expiry date, then he or she can get a refund for the remaining policy tenure.
Why is Insurance Important for Two Wheelers?
If you have recently purchased a new bike, then it is mandatory for you to get an insurance policy. This is because of the Motor Vehicles Act of the Government of India that dictates that every bike owner should have an insurance policy.
All of this is important because of the bad condition of roads along with instances of rash driving that increase the chances of accidents. These accidents cause damage not just to vehicles but to the driver and the third party. This can even result in a loss of life. It is also quite easy to see that there would be loss of money in these cases too whether that would include repairing the vehicle or getting medical assistance.
If an individual has insurance, then these repair expenses can be taken care of by the insurance company. Hence, these charges won’t burn a hole in your pocket. You might also find it important to remember that policies also cover damages caused to the bike due to natural calamities like fire, floods, and earthquakes. You are free to make a claim under these situations.
All of this is good as the majority of bike owners are people with limited resources. And having an insurance policy will make sure that they can avoid a financial and unforeseen burden of expenses.
In the case of third-party bike insurance, one can file a claim for the damages to the other vehicle or the third party that is involved in the accident. In the case of a comprehensive insurance policy, one can make a claim for oneself and the third party. This claim amount can be very helpful during your time of need.
The Price Quotes
Till now we have talked about different aspects related to insurance for two-wheelers. Now, let’s go over the costs that you might have to cover for the different insurance policies. These price quotes are mentioned in the table given below.
|Insurance Provider Top Plan||IDV Cover Value||Premium Amount|
|New India Bike Insurance||INR 45,739||INR 1,358|
|United India Bike Insurance||INR 45,739||INR 1,457|
|Iffco Tokio Bike Insurance||INR 32,435||INR 1,465|
|Digit Bike Insurance||INR 40,881||INR 1,645|
|Oriental Bike Insurance||INR 40,658||INR 1,792|
|MAGMA HDI Bike Insurance||INR 42,829||INR 2,028|
How Can I Buy Two Wheeler Insurance Policy Online?
The last thing you need to know now is how you can purchase a two wheeler insurance policy online. The steps for accomplishing the same are mentioned below.
- Go to the website of the insurance provider from where you want to buy the bike insurance policy
- Enter your details that are required
- Select your city and your RTO zone code
- Mention the details related to your bike, including the manufacturer, model, and variant
- Enter the year of vehicle manufacture
- Select from the quotes that are available on the website. This will be on the basis of the plan that suits your need the best
- Choose any additional cover that is required
- Enter your personal details
- Pay the premium amount through several options like debit card, credit card, and internet banking
Once you are done with these steps, then the policy will be issued and emailed to your registered email ID.