Advantages of buying insurance would hardly fit in one article. Apart from providing financial protection, it helps you have peace of mind at the time of claim. You do not have to worry about sudden financial crisis arising from an accident if you have a valid insurance.
So, here are the main advantages of Two Wheeler Insurance:
- #1 Coverage against third-party liabilities
- #2 Financial Protection for Own Damage
- #3 Discounts
- #4 No Penalties
- #5 Peace of Mind
#1 Coverage against third-party liabilities
When you buy two wheeler insurance, you financially protect yourself against third-party liabilities. This is why, buying two wheeler insurance is mandatory as per The Motor Vehicles Act, 1988. A third-party liability may arise if you cause an injury to the third-party person or cause damage to the third-party property with your insured bike.
The cost of compensating the third party may be unaffordable in some cases. With insurance, your insurance company will pay the compensation. Also, the legal liabilities which may arise due to an unfortunate event will be taken care of by your insurer.
#2 Financial Protection for Own Damage
A third-party liability policy does not cover the cost of repairing damages caused to your bike. However, a Comprehensive insurance policy for a bike will cover this cost. Any type of damage caused to your bike will be covered by your insurer.
A comprehensive 2 wheeler insurance policy offers a wide range of coverage which includes theft, fire, man-made calamities, natural calamities, vandalism, etc. Apart from this standard coverage, you can choose to enhance its scope with the help of Add-ons. Add-ons for two-wheeler are Zero Depreciation Add-on, Pillion Rider, Two Wheeler Insurance Personal Accident Cover, NCB Protect, etc.
Buying a two wheeler insurance policy is not as financially draining as it may sound. You don’t have to pay the full amount of premium each time you renew the policy. If you do not make a claim against your policy by driving safe, you will start receiving heavy discounts on your policy. The No Claim Bonus will begin with the first renewal of two wheeler insurance. This is when you will get 20% discount on two wheeler insurance. On the second renewal, the discount shoots up to 25% and goes up to 50% on each consecutive claim-free renewal.
#4 No Penalties
In India, traffic offenders are imposed heavy fines and punishments. This move is made by law enforcement to curb the number of road accidents and fatalities in the country. Buying an insurance policy is as important as wearing a helmet. The only difference is, a helmet is a physical form of protection whereas insurance protects you financially. It is against the law to not carry an insurance policy while riding your bike. Thus, if the hard copy of the policy is not produced when demanded by the officials can attract a fine of up to Rs 1000 or Imprisonment up to 3 months or both. But if you have bought an insurance policy and have its copy while riding, you don’t have to worry about penalties or imprisonment.
#5 Peace of Mind
Sometimes mishaps can occur despite you being a safe driver. Being financially equipped for them is the key to attain peace of mind. 2 wheeler insurance is precisely that key. When you have insurance, you remain on the right side of the law. Plus, you are free from a sudden financial crunch which may occur due to an unfortunate event involving your bike. So, with a bike insurance policy, you also buy peace of mind.
The Bottom Line
These advantages hold true only if you continue to have valid bike insurance. Thus, it is important that you renew the policy on time. This will also ensure that you continue to get the No Claim Bonus.