How Can Not Opting for A Bike Insurance Affect You?
With the amendment to the Motor Vehicle Act 2019, it has become much more important to know about the different things that concern you as a bike owner. A big factor that you need to talk about is bike insurance. Life is completely uncertain, so an insurance policy must always be there to guard you.
While bike insurance is one of the required bike documents you must always hold, bike insurance also protects you against financial liability against damage, theft, loss, and covers any damage or accident to the vehicle or property of a third party. It also includes accident cover for the owner-driver of the insured bike.
Not only is it mandatory for bike owners, but it also protects your financial obligations, which makes it necessary to renew bike insurance before the expiry date. A lapsed bike insurance would not provide the above risks with financial coverage. Every bike owner is required by the Motor Vehicles Act, 1988, to insure their bike to prevent violating the law and paying fines.
Consequences of Not Buying A Bike Insurance
There are some benefits that you would miss if you do not have bike insurance or if you may not renew your bike insurance. If you do not have bike insurance or have an expired/lapsed bike insurance policy, you can face the following consequences:
- Penalty: Every vehicle must have insurance when plying on Indian roads. You must be willing to face a very heavy fine or jail for up to 3 months if you are found without a proper procedure. A penalty of Rs. 2,000 and/or imprisonment of up to 3 months for the first offence and Rs. 4,000 and/or imprisonment of up to 3 months for the second offence may be levied by the transport and traffic authority.
- Loss of No-Claim Bonus: The benefits are accrued in the form of no-claim bonuses when you do not make a claim for years and years. At a certain point in time, a person is entitled to get the no-claim bonus. When the policy expires for 90 days or longer, the value of the no-claim bonus received is lost. It is also possible to transfer the no-claim bonus to your new bike if you purchase one. However, once the policy has lapsed, it will not be transferred.
- Legal Liabilities: You are protected by a comprehensive bike insurance policy against all sorts of risks, including those caused by human beings and natural disasters. If your bike is damaged after your insurance expires, you have to pay the whole cost of replacing your bike. You may be charged for a few reasons if you have an accident with your bike: first is for negligent driving and the second is for your lapsed policy. You have to suffer a lot of financial losses that could disrupt yours as well as your family's peace of mind.
- Lengthy Process: You have to go through a time-consuming process if you wish to make your lapsed policy active. The process for renewing a policy that has lapsed is as effective as buying a policy. To renew your lapsed policy, you will have to pay a higher price.
Take Away
Not only does the renewal of your bike insurance refuse your claim, but it may also lead to legal liabilities. Therefore, it is important to immediately renew your bike insurance to ensure that you do not end up paying for any expenses from your pocket. With bike accidents and theft incidents on the rise, insuring your bike with a comprehensive bike insurance policy is the best way to remain safe and protected.
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.
