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Why Two-Wheeler Insurance Is a Must in India

The blog explains what happens if you ride without valid two-wheeler insurance, including legal penalties, financial losses, and lack of protection against theft or disasters.

  • 31 Jul 2017
  • 5 min read
  • 575 views

In India, two-wheelers are one of the most popular modes of transport. They are affordable, fuel-efficient and easy to ride, especially on busy roads. However, owning a two-wheeler comes with certain responsibilities. One of the most important responsibilities is having a valid two-wheeler insurance policy.

Comprehensive two-wheeler insurance not only protects your vehicle from damage but also covers you in case of accidents, theft or natural disasters. It goes beyond the basic third-party insurance and provides complete financial support when needed. This blog explains the legal and financial consequences of not having two-wheeler insurance and how to avoid penalties.

Consequences of not getting a two-wheeler insurance

Not having two-wheeler insurance can have major consequences, like:

  • Legal penalties

The law requires every vehicle to have at least third-party insurance. If you are riding without insurance, you might be fined ₹2,000 for the first offence and then ₹4,000 for the second. In some cases, you may also face imprisonment for up to three months or both. This is a legal offence and can be added to your driving record.

  • Financial losses

If you meet with an accident, you will have to pay for all repairs from your own pocket. If the damage is severe, it can cost a lot. Even worse, if someone else is injured or their vehicle is damaged, you will have to pay compensation, which can be very expensive.

  • No protection against theft or natural calamities

Without comprehensive two wheeler insurance, you will not be covered if your bike is stolen, damaged due to fire, floods or other disasters. In cities where theft and natural disasters are common, this can lead to a big financial setback.

  • No claim settlement support

Insurance companies also assist in the claim settlement process. If you have an accident, they help you get your bike repaired through authorised garages. Without insurance, you will not have any such support.

  • Difficulties during roadside checks

Police and traffic authorities often carry out checks. If you are stopped and found without valid insurance, you may have to pay a fine on the spot or have your vehicle seized.

Tips to avoid getting fined

Avoiding fines for not having two-wheeler insurance is simple if you stay alert and follow the rules. Here are a few useful tips:

  • Always buy or renew your insurance on time

It is important to renew your insurance before it expires. Most insurers send reminders, but it is your responsibility to keep track of the dates. Set a reminder on your phone or calendar.

  • Opt for long-term insurance

Some insurance providers offer long-term comprehensive two-wheeler insurance that lasts up to three or five years. This means you do not have to worry about yearly renewals and the risk of missing deadlines.

  • Keep a digital copy of your insurance

Always carry a digital copy of your insurance on your phone. You can also store it in the DigiLocker app, which is accepted by the traffic police.

  • Choose comprehensive two-wheeler insurance

Comprehensive insurance offers wider coverage, including own damage and theft protection. It is a better choice than only having basic third-party insurance.

  • Check for No-Claim Bonus (NCB)

If you renew your insurance regularly and do not make any claims, you get a no-claim bonus. This reduces your premium amount and encourages safe driving habits.

Frequently Asked Questions

  • Is it illegal to ride without two two-wheeler insurance?

Yes, under the Motor Vehicles Act, it is not legal to ride a bike in India without at least third-party insurance.

  • What is the difference between third-party and comprehensive two-wheeler insurance?

Third-party insurance covers only damage or injury caused to others. Comprehensive two-wheeler insurance provides a broader coverage against accidents, damage, theft, natural disasters and even third-party liabilities.

  • What happens if I forget to renew my insurance?

If your insurance lapses, you are no longer protected. You must renew it as soon as possible. Some insurers may inspect your vehicle again before renewing a lapsed policy.

  • Can I renew my bike’s insurance online?

Yes, most insurance companies offer online renewal options. You can compare policies, pay online and receive your insurance document instantly.

  • Do I need insurance if my bike is not in use?

Yes, even if your bike is not being used, it must have a valid insurance policy. This ensures it is covered against theft or natural disasters and remains legal.

Conclusion

Riding a two-wheeler without insurance might seem like a small issue, but it can lead to big problems. Having a valid insurance policy is not just about following the law, it is about protecting yourself, your vehicle and others on the road.

Comprehensive two wheeler insurance gives you coverage for a wide range of situations, like theft, natural disasters and personal accident coverage. It is a small investment that offers big protection. So, if you are buying a new bike or already have one, make sure you are always insured and ride responsibly.


Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

Also read:

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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