Two wheeler vehicles are considered in Indian homes just like another family member. It provides us ease and convenience to travel freely and cherish the city rides. For youngsters, their bikes and scooters are much more than a vehicle, it relates to their style and personality and considered to be their best friends without which their long road trips and fun parties are not possible.
For complete protection of two wheelers from accidental damage, natural calamities, theft and other named perils many tailor made insurance policies are available in Indian market with a wide variety of additional covers.
In addition, insurance policies also satisfy the mandatory legal and administrative requirement of having a third party liability policy for compensation to anyone injured in a road accident by our two wheelers. It also provides accidental death and disability benefit for driver and pillion rider.
Generally we all purchase insurance for the first time while purchasing the brand new two wheeler from showroom but with passing time we either forget to renew the same or lose interest in continuing it.
In this article we bring to readers’ attention the importance of having continued insurance policy without any break in and some reasons we should renew the two wheeler insurance policy immediately.
Number of accidents on Indian roads is ever increasing. Even if the accident is small, the repair cost and service charges to bring the two wheeler to running condition can bring a dent to our pocket as these expenses are not a part of the monthly budget of a middle class family. In the case we have timely renewed the motor insurance policy we enjoy complete peace of mind that insurance company is there to pay for these unwanted accidental damages and repair costs.
Continued protection from natural perils is one other reason we should pay heed to and renew the two wheeler insurance policy as early as possible and before expiry. Every year with arrival of monsoon we hear about the growing intensity of floods and thousands of two wheelers getting heavily damaged therein. A renewed insurance policy without any gap ensures that we enjoy an all the year round complete protection shield for every season for the two wheeler.
Man-made perils like theft also pose a continuous threat to the vehicle everyday which is not dependent on any season. Theft cases of bikes have been considerably increased in recent years which with the increasing cost of the bike can give a major financial blow to our pockets.
Even while parking at streets or apartment parking space, some malicious damage done to a two wheeler or accessories fitted thereto can incur significant repair charges. A renewed insurance policy ensures the backup of payment from the insurer in case of any damage to the vehicle due to theft, malicious damage, riot or strike.
Third party liability insurance is a statutory legal provision, without complying to which we cannot drive our bikes in any public roads of India. With the increasing number of road accidents and deaths thereto, there is an increasing inclination of the government and the authorities to strictly implement this provision.
As per new norms notified by the government in the Motor vehicles Amendment bill 2019, driving a vehicle without a valid Third party liability insurance policy is an offence with fines up to INR 2000. Every time we step out with our bike or scooter without valid third party liability insurance we need to play hide and seek with the traffic police and if caught need to pay a fine.
These hide and seek with traffic authority is not a fun game and may lead to more serious consequences like accident while over-speeding and more serious offenses. Even if your insurance expired a day ago traffic police can catch and fine you while driving for not complying with the legal requirement. Therefore in this case, it is not a matter of wish but a mandatory statutory requirement to have a continued renewed motor insurance policy without any gap in coverage.
No claim bonus which is a percentage discount on the own damage section premium is only allowed if insurance policy is renewed within 90 days of expiring of the previous policy.
As this is a reward for making no claims in the previous policies and can go up to as high as 50% discount, it is always advisable to renew the insurance policy right now the day after expiration to claim the discount. Procrastination in renewing the policy can make us loose the no claim bonus discount accumulated over the years resulting in paying high premium.
There are other additional covers like Roadside assistance, Engine Protect; Keys protect etc. which cease to be at place during the gap in insurance and can lead to considerable difficulties and additional out of pocket expenses if there is damage to the vehicle in this period.
A gap in insurance may lead the insurer to pre inspect the vehicle before granting you cover again. This is an unnecessary hassle we can avoid by keeping a continuous cover in place. Also, the personal accident cover for driver and pillion rider will not be in place during any gap of insurance coverage.
In case there is an accident during this period any death or disability benefit will not be paid by the insurer. Keeping your insurance policy in force is thus the best option in front of us.