After the recent ruling, there have been significant changes in the motor insurance premium. The personal accident cover has been increased to Rs 15 lakhs. Subsequently, the premium has also been hiked. Take a look at this article to know all about this new ruling and how it will affect bike owners.
Important points related to the new law
Let us quickly glance over some of the salient features of this new ruling:
- For everyone: This rule to have a personal accident cover of Rs 15 lakhs is applicable to all motor vehicles, irrespective of their size and type. So a two-wheeler owner is also liable to take the cover. If anything happens to the rider or driver, the family will get a personal accident cover of Rs 15 lakhs. The previous cap was limited at Rs 1 lakh only for two wheeler insurance policies.
- For all insurance types: You will need this insurance cover if you buy a third party plan or a comprehensive plan. The cover is not limited just to a comprehensive plan, as many incorrectly believe. A third party plan only covers third-party liabilities, but with this new law has something to offer to the policyholder too. You will have to opt for it when you renew two wheeler insurance as well.
- Premium hike: There will be a hike in premium simply because there is a hike in the cover. The two wheeler insurance cost will now be a minimum of Rs 750 for one year. This is high, but for the benefit it offers, the price is actually quite reasonable.
- The reason behind the rule: The rule was implemented after a policyholder lost his life in a two-wheeler accident. But since he had a third party policy, the policy only paid his family a sum of Rs 1 lakh. The High Court heard a plea from the deceased’s wife. It acknowledged that the policyholder who paid the premium should also be entitled to some compensation in such extreme cases. It advised the IRDA to increase the personal accident cap. The IRDA agreed and the new rule was passed.
- Getting the cover: There has not been any change in the process of buying the cover. You can still compare two wheeler insurance online and buy the plan that is best suited for you. You just need to pay the higher two wheeler insurance premium amount and the plan will be issued in your name instantly.
Using the Insurance Properly
The ruling has been welcomed in general by the people and the insurers. This is because there are some definite risks associated with riding a two-wheeler. And we all know Rs 1 lakh is often insufficient to support a family after the breadwinner’s demise. So buy or renew two wheeler insurance with the new protection and keep your loved ones safe. The policy offers all the other existing bike insurance benefits. So go online, compare two wheeler insurance and find your ideal cover. Choose the correct type of cover, choose some riders (if needed), adjust your deductible and you will be equipped with the best possible bike insurance plan for yourself.
In a Nutshell
The new ruling by the IRDA has many positive implications. So keep all the points mentioned above in mind and go look for your ideal two wheeler insurance cover. Pay the required premium and don’t forget to renew the plan on time. Once you have a good policy in place, you can ride your bike with ease and peace.