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Insurance Article

What Happens When You Do Not Buy a Two Wheeler Insurance?

May 31 2017
buy a two wheeler insurance

Uninsured two wheelers can put you into legal troubles resulting in hefty fines

Two-wheeler third party insurance is mandatory in India, yet a majority of riders share a different outlook and consider it as an added financial burden. According to a survey by the Insurance Regulatory and Development Authority of India (IRDAI), 75% of two wheelers on Indian roads have either no or lapsed insurance. Riding without insurance might be an oversight or just a way to save money. Either way, if you are one of the 75%, you may face one or more of the below-mentioned consequences.

Legal Liabilities

A comprehensive two-wheeler insurance is essential for a rider’s security. It offers the much needed cover in the event of occurrence of an untoward incident. If you are riding without a comprehensive two wheeler insurance, you will have to pay for all the repair costs after an accident, which can be a costly affair.

Things can get even worse when a third party is involved. If in the accident, the third party is injured, or worse, dead, it could mean a major legal and financial crisis for you. To save yourself the trouble, it is better to have a valid comprehensive two-wheeler insurance policy that will take care of all the expenses and also protect you against any legal liability.

Heavy Penalties

Riding a two wheeler that has no insurance or lapsed insurance is illegal according to the Motor Vehicles Act. Thus, if the authorities catch you without insurance, there will be certain penalties that you’ll have to endure. These penalties can come in the form of 3 months of imprisonment, a fine up to ₹ 1,000, or both.

Tedious Process

Renewing a lapsed two wheeler policy is a time-consuming affair involving filling paperwork and other hassles. It is similar to obtaining a new policy, where the two wheeler will again be physically inspected. There is also a high probability of the insurer charging a higher premium or rejecting the proposal altogether. It would be convenient as well as cheaper for you to keep a track of the insurance policy and renew it before the expiry date.

Forfeiture of No Claim Bonus

If you have two-wheeler insurance and don’t make a claim for a year, you are eligible for a No Claim Bonus (NCB) from your insurer. The NCB gets accumulated for every claim-free year and can be availed as a discount on premium for the following year.

The best part is that the NCB is attached to the policyholder and gets transferred in case you transfer your policy from one insurer to the other. However, if your policy has lapsed for more than 90 days, all your accumulated benefits will also lapse.

Not buying a two wheeler insurance is a risky proposition that only exposes you to financial losses during an untoward incident. Considering the losses and complications that can arise from an accident, it is imperative for you to buy a comprehensive two wheeler insurance and renew it on time.

Related Article:

Why You Should Opt for a Roadside Assistance Cover in a Two Wheeler Policy?
Renewing Your Two-Wheeler Insurance Online

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