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60 Percent of Vehicles in India Are Not Insured and Most of These Are Two-Wheelers

In India, when you stop at any red light you get an idea about the composition of the automobile distribution on our roads. It comprises of a few buses, plenty of cars and way more two-wheelers. Roughly, these two-wheelers sum-up 76 percent of the urban traffic. Unfortunately, they also, account for a whopping 34 percent of road deaths across India, as per the data compiled by the Ministry of Road Transport and Highways.

Despite third-party motor insurance being compulsory by law, a fairly large number of these two-wheelers remain uninsured.

This problem has two layers. Either two-wheeler owners don’t buy bike insurance for their automobiles in the first place. If they do, they don’t take bike insurance renewal seriously. They don’t renew it on time; as a result, the status of their insurance plan becomes inactive.

As per a General Insurance Council of India report, approximately 60 percent of automobiles in India are uninsured and most of these are two-wheelers. From 2015-2016, India had approximately 19 crore registered automobiles. Out of 19 crores only 8.26 crore (less than the half) were insured.

Two-wheeler rides give various reasons for not buying insurance coverage for their automobile. Some of these reasons are- their scooter is very old, it is second hand and the distance they travel on a daily basis is short.

As mentioned earlier, bike owners lose interest in renewing their insurance plan and their insurance plan lapses. Until or unless they file a claim, they feel that insurance premium is an extra-burden and a sheer waste of money. The state of law enforcement is so poor in our country that people get away with not having an active insurance plan for their automobile. Flouting the law isn’t a new thing in our country. It’s high time people take these laws seriously.

Automobile Insurance Laws in India

While buying insurance is considered as a personal choice. The government has mandated every automobile owner to buy third-party insurance coverage. When we are on the road, we are exposed to various kinds of risk. Road mishaps can happen anytime, anywhere with anybody. If somebody is hit and badly injured by a car due to the negligence of the driver who will pay for his medical expenses? Clearly, somebody is at fault and it is his obligation to pay for the treatment of his bodily injuries and repair of his property damages. A third-party motor insurance provides insurance coverage for bodily injuries, death or property damages caused by one’s automobile to the other.

According to the Motor Vehicles Act 1988, it is compulsory for all the automobiles plying on Indian roads to have a valid third party insurance coverage. Defaulters will have to pay a fine of Rs. 1,000 or face 3 months imprisonment or both.

Generally, vehicle insurance is considered central to road safety and responsibility. It makes sure that compensation is provided to road accident victims or their kin.

Insurance Regulatory and Development Authority of India formulates the annual insurance premium for the third-party insurance plans. Currently, the third-party premium for two-wheelers ranges between Rs. 569 – Rs. 796. It varies as per the cubic capacity of the engine.

Stricter Enforcement- The Need of the Hour

The total number of two-wheelers in road mishaps has been increasing. As per Road Accidents in India 2015 report, in 2013, it was 26.3 percent, in 2014 it was 27.3 percent and in 2015, it was 28.8 percent.

When we talk about numbers in 2015, 1,35,343 people were injured and 36,803 people died in road mishaps involving two-wheelers.

When on road, two-wheelers are highly exposed to risks, which make them the most vulnerable vehicles on the road. This is why insurance experts stress on the importance of buying insurance for your automobile. Though premium rates of two-wheeler insurance plans are nominal, vehicle owners do not buy vehicle insurance coverage. They think that nobody is going to stop them and ask to show the insurance documents. As a result, they don’t buy insurance coverage.

It is super important for every automobile to be insured. The uninsured automobiles impose huge liability on the accident victims.

The Need to Be Responsible

We need to be responsible for ourselves. We must take responsibility for our actions. Nobody wants to face a loss because of somebody else. Nobody wants to pay for somebody else’s actions. The government has made third-party insurance coverage mandatory in order to ensure the safety of people who’re out on the roads on a daily basis. We live in a harsh world of comparisons. We compare each and everything; from the food we eat to the lifestyles we follow. We compare the roads and infrastructure of our country with developed countries such as America. A nation develops because of its citizens. In America, people take law and order very seriously.  Of course, exceptions are always there.

Let’s discuss an example.

At the time of buying his brand new bike, Mr. Vats purchased motor insurance. After a year, it was the last date for renewing the vehicle insurance plan. Mr. Vats knew but he didn’t bother to renew it. As per him, he didn’t file any claim and nobody ever checked whether he’s carrying his motor insurance policy or not. So why should he waste his hard-earned money on insurance premium?

One fine day, Mr. Vats took his wife to shopping. He parked his vehicle on the road as he didn’t want to waste his money on parking fee of an authorized parking. When it was time to go home, Mr. Vats couldn’t find his vehicle. He got anxious and had an anxiety attack.

He informed the police and lodged an FIR. Police told him to keep his expectations low. Since he parked his bike in an unauthorized parking, chances for his bike to be found are very low.

Mr. Vats was feeling helpless and stupid at the same time. He realized that he should have bought insurance coverage for his vehicle. Now he has to bear the loss of his bike and save for a new vehicle at the same time. He learned his lesson the hard way.

Don’t Wait For Anything to Happen to You

A majority of people don’t consider anything seriously until it we are affected by it directly or indirectly. Be proactive and don’t wait for something bad to happen to you. Ensure that you buy the adequate vehicle insurance coverage for your two-wheeler and add an extra layer of security to your protection.

The Bottom Line

Enough has been said about the importance of two-wheeler insurance. If you haven’t purchased vehicle insurance coverage for your automobile, don’t lag behind. Buy motor insurance coverage as soon as possible. You can check out policies offered by Bajaj Allianz two wheeler insurance.

If you already have motor insurance coverage, don’t forget to renew it on an annual basis. In case your insurance plan has lapsed, don’t worry. You can get it renewed after your insurance provider’s representative inspects your vehicle.  We should buy an insurance plan that offers maximum insurance coverage at a minimum premium because when we would actually need it, we might not get it.