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Is Two Wheeler Insurance Mandatory For 5 Years

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You can be an experienced rider, but road mishaps are unforeseen events. Your vehicle is vulnerable to some risk or other at all times. Hence, securing your precious possession with an appropriate bike insurance plan becomes necessary.

Also, third party bike insurance is a must under the Motor Vehicles Act, 1988. But many people are confused about whether or not two wheeler insurance is mandatory for five years. In this article, we will be discussing the same.

Two Wheeler Insurance Mandatory For Five Years – The Verdict

Recently, the Supreme Court passed a verdict on all two-wheeler and four-wheeler insurance. The judgment stated that when buying a new vehicle, consumers will have to shell out additional money. This is because they have to purchase long term two wheeler insurance alongside mandatorily.

The Supreme Court has made two wheeler insurance compulsory for five years and four wheeler insurance for three years (only for the newly purchased vehicles). 

The intention behind this verdict is to ensure that the drivers/riders are secured in the long run. Moreover, it also gives a much-needed boost to the insurance industry from a commercial point of view.

Types of Bike Insurance Plans

  1. Third party bike insurance – As we mentioned earlier, this policy is mandatory by law. However, the coverage provided under the third party bike insurance is limited. It only covers you for third-party liabilities.
  2. Comprehensive bike insurance – Comprehensive insurance provides extensive coverage. It not only covers the third party liabilities but also includes coverage for the damage incurred by your vehicle in case of accidents. It also offers you (the policyholder) with personal accident coverage. Also, you have the liberty to buy additional coverage over and above the existing plan.

Benefits Of Buying Comprehensive Two Wheeler Insurance

 

  • Your Bike Is Financially Secure

 

With comprehensive two wheeler insurance, you can rest assured that your precious bike is financially covered in case of accidents. Moreover, all the third party liabilities are also covered under the plan. It offers an add-on cover for pillion riders.

 

  • Own Damage Protection

 

Comprehensive two wheeler insurance coverage your bike in case of any damage incurred due to accidents, theft, or man-made and natural disasters. So, any damage caused to your vehicle will be compensated for by your insurer.

 

  • Protection Against Third Party Liabilities

 

One advantage of comprehensive insurance is that it offers to cover all the third party liabilities as well. Here, any damage caused by your vehicle to third a person or property will be covered under this clause. This means, your motorcycle is secure at all times under any circumstances.

 

  • Covers Medical Expenses

 

As we mentioned before, comprehensive bike insurance also offers personal accident coverage of up to INR 15 lakhs. So, in case of any fatal injury to the rider, the entire sum insured will be paid to the nominee. Also, the same is paid in case of any permanent disability caused due to the accident.

Over To You

Generally, two wheeler insurance plans needed renewal yearly. After the new verdict on motor insurance plans, new vehicles purchased need to have long-term insurance coverage (five years policy term for bike insurance). 

Long term two wheeler insurance comes in handy as it saves you the burden of renewing your policy every year, thus safeguarding your bike for a long time. 

Moreover, the premiums charged are constant throughout the policy term and are not affected by external factors. In case you are looking for long term bike insurance plans for your new vehicle this year, browse through Bajaj Allianz two wheeler insurance plans available on Finserv MARKETS. 

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

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