Consequences of Not Buying A Two Wheeler Insurance Policy

Buying a bike insurance policy for your two wheeler is mandatory by law. If you are using your two wheeler and riding it on Indian roads without an insurance policy, you are doing so in violation of the legal standards set. Not only this, there are various other negative consequences to failing to purchase insurance for your two wheeler which will affect you personally in other ways. The following are the consequences of not buying a two wheeler insurance policy.

What Happens if you Do Not Buy an Insurance Policy for your Two Wheeler?

Let’s read about the consequences of not buying two wheeler insurance.

1. Legal Penalty

As mentioned, at least third-party bike insurance is mandatory by law for all vehicles operating on Indian roads. This is legislated by the Motor Vehicles Act. If you are caught without an insurance policy you will have to pay a fine of Rs. 2,000. Further, you may even be imprisoned for up to three months for the violation of this law.

2. Loss of No Claim Bonus

No Claim Bonus is available as a discount for when you renew your insurance policy, as a reward for being cautious as a driver and not raising any claims during the policy tenure. This saving would be lost to you if you do not purchase insurance for your two-wheeler and thus would consist of a financial loss to you.

3. Legal Liabilities

The purpose of the law that mandates that every single car on Indian roads must be insured is to make sure that in case of any accident or damages arising from the same, somebody will be able to take responsibility for the liabilities that arise. In the absence of an insurance policy, you would have to pay for these third party liabilities yourself, if you find yourself in an accident situation wherein harm or damages come to a third party or his/her property. It is an extremely hefty financial risk to take on which is best avoided.

Also Read

Benefits of Zero Depreciation Cover For Bike

Difference Between Zero Depreciation And Comprehensive Bike Insurance Cover

Takeaway

Not only would you fail to be a law abiding citizen if you do not purchase an insurance policy for your two wheeler, you would also be exposing yourself to considerable financial losses and risking a lot of legal and financial liability onto yourself. This is extremely inadvisable and as such you should make sure that you follow the law and purchase an insurance policy for your two wheeler.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.