Driving Without Two-wheeler Insurance in India - Are You One of Them?

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Importance of Standalone Own-damage Cover

Watch our latest episode of Insurance Ki Baat with Tarun Mathur, Co-Founder & CBO, Policybazaar.com, and understand the significance of the Standalone Own-damage Bike Insurance Policy and the increasing rate of uninsured two-wheelers in India. He also explains why people should obtain a comprehensive bike insurance plan because it financially covers their own damages and as well as third-party liability.

In India, around 76% of the urban traffic comprises of two-wheelers.

However, a fairly good number of these two-wheelers are uninsured. Read on to know all about the impact of driving without a two-wheeler insurance policy in India.

Rate of Uninsured Two-wheelers in India

Before diving into the details of the penalty for driving a bike without insurance in India, let's go through the number of uninsured two-wheelers in India.

As per the Uninsured Vehicle Report (2019) by the Insurance Information Bureau of India, 60% -66% of two-wheelers are uninsured.

Uninsured two-wheeler insurance

But what could be the major reason behind such a high rate of uninsured two-wheelers?

  • Well, the primary reason behind this is unawareness of the significance of a two-wheeler insurance policy.
  • Secondly, some people only obtain a third-party liability cover because it is mandated by law. Due to this, they pay for the repairs from their own pocket when something happens to their own vehicle. Therefore, the own damages remain uncovered.
  • Another problem is that bike owners do not take their bike insurance renewal seriously. They do not renew the policy on time; as a result, the policy becomes inactive. Hence, they are not covered anymore.

According to the Motor Vehicle Act, the consequences of riding a bike without insurance mean defaulters will have to pay a fine of Rs 2,000 or imprisonment up to 3 months or both.

Why Should You Opt for Comprehensive Bike Insurance Plan?

The Motor Vehicle Act 1988 makes it compulsory for all two-wheeler owners to obtain at least third-party bike insurance before riding the vehicle on the roads. However, it does not guarantee any financial protection against the damages or losses incurred to your own vehicle in any unforeseen mishap.

With the rising numbers of road accidents in India, no one can feel safe without having extensive coverage for their rides. Therefore, it becomes necessary to have a comprehensive bike insurance plan.

This insurance plan facilitates the safety of your precious possession from the several damages caused by accidents, unexpected natural disasters, man-made activities, theft, burglary, total loss, fire, etc. This plan helps to keep your worries aside by protecting your vehicle as well as the liabilities towards the loss or damage of third-party property or life.

Some perks of having a comprehensive bike insurance policy are as follows-

  • It protects your insured two-wheeler from the damages and loss caused by manmade activities like theft, riots, vandalism, etc. In India, 70% to 75% of claims on two-wheeler are raised because of theft.

As per a report by Delhi Police Data, 26,432 two-wheeler theft cases were reported in Delhi

Stolen two-wheelers data

Therefore, if you don't have standalone own-damage bike insurance, then it might burn a hole in your pocket.

  • It covers all the loss or harm caused to the insured bike due to natural calamities like earthquakes, floods, cyclones, thunderstorms, etc.
  • It protects your own vehicle from the damage caused during an accident or crash.
  • It also covers legal and financial liabilities towards the third party in case of an accident. It covers loss of third-party vehicle, property, physical injuries or death of the third party in an accident caused by the insured two-wheeler.

Top Reasons for Non-renewal of Standalone Own-damage Bike Insurance Cover

In September 2018, the Insurance Regulatory Development Authority of India (IRDAI) issued guidelines for motor insurance policies. Under this, the new two-wheeler owners, those who have bought vehicles on or after September 1, 2018, it is mandatory to buy a 5-years third-party cover and 1-year standalone own damage cover.

Therefore, as a two-wheeler owner, you have now an option to renew your own-damage cover from a different insurer after one year.

However, some policyholders fail to renew their standalone own-damage cover before the due date which results in having a lapsed two-wheeler insurance policy. It could also lead to a financial loss if the vehicle meets with an accident during this lapse period.

The common reason behind the non-renewal of standalone own-damage cover could be due to negligence or carelessness. Buying a bike insurance policy is easy, but keeping it going by paying the premiums annually, well, that's a task.

Whatever the reason behind the non-renewal of the policy is, you will be liable to pay for all the damages caused to your own vehicle. Moreover, once your bike insurance policy has lapsed, you will have to go through a fresh inspection of the vehicle during the subsequent renewal of the policy. You also lose all the accumulated bonus (commonly known as NCB) on your standalone own-damage cover.

Why is On-time Renewal of Two-wheeler Insurance Policy Important?

Your bike insurance policy is only valid when it is active. Needless to say, due to a busy schedule or carelessness, you might forget to renew your standalone own-damage cover after one year.

As a result, you will have to pay for all the expenses to repair the bike. Therefore, it is highly recommended to renew your policy on time or before its expiry date.

Why should you Buy Insurance from Policybazaar Insurance Brokers Private Limited?

When you buy two wheeler insurance from Policybazaar.com, you can get the lowest premium as there will be zero commission charged. Buying bike insurance online is also a hassle-free and quick process. Have a look at some interesting features offered at Policybazaar.com-

  • Compare multiple two-wheeler insurance plans offered by 20+ insurers and save up to 85%
  • Get your bike insured at the lowest premium
  • A 24x7 customer support to resolve all your queries and assist you whenever needed
  • Enjoy a cashless claim facility with several network garages available across the country
  • Transfer your NCB without any hassles.

Final Words

A bike insurance policy acts as a financial backup in case of an unforeseen event. In India, to legally ride your two-wheeler, you must obtain a relevant policy. If you already have coverage, do not forget to renew it annually. In case you hold lapsed policy, do not worry, you can visit Policybazaar.com and get it renewed. Always choose a plan that offers you maximum coverage at an affordable premium.

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Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

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^The renewal of insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for a transaction may vary subject to additional data requirements and operational processes.

^The buying of Insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for transaction may vary subject to additional data requirements and operational processes.

#Savings are based on the comparison between highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.

*TP price for less than 75 CC two-wheelers. All savings are provided by insurers as per IRDAI-approved insurance plan. Standard T&C apply.

*Rs 538/- per annum is the price for third party motor insurance for two wheelers of not more than 75cc (non-commercial and non-electric)

#Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.

*₹ 1.5 is the Comprehensive premium for a 2015 TVS XL Super 70cc, MH02(Mumbai) RTO with an IDV of ₹5,895 and NCB at 50%.

*Rs 457/- per annum (1.3/day) is the price for the third-party motor insurance for private electric two-wheelers of not more than 3KW (non-commercial). Premium is payable on an annual basis