The Indian automotive industry is one of the largest in the world with over 70% of it being dominated by two wheelers of varying capacities. Despite this massive statistic, over 75% of the country’s two wheeler owners are guilty of not owning vehicle insurance. This situation is prevalent even though Indian law explicitly states that owning insurance is mandatory.
In this page, we will deal with two wheeler insurance, its types, and the importance of having one for your vehicle.
Two Wheeler Insurance: The Basics
A two wheeler insurance is a policy that covers damages which occur to any person or property in the event of a vehicular accident or loss.
There are two types of two wheeler insurance. They are:
- Comprehensive Policy: A policy that covers your vehicle against any damage sustained due to fire, flood, or riot. It provides accidental cover and also provides covers for third party liability amounts at the time of an accident.
- Third Party Liability Policy: A third party liability policy offers coverage against any damage caused by you to another individual and their vehicle.Here’s a scenario which best explains how a third party liability insurance works.
Mr. A, while on his usual commute to his office, happens to crash into another vehicle. This vehicle in question incurs a significant damage. Mr.A uses the third party insurance to pay for all the expenses they have incurred by simply initiating a claim request with the insurance provider.
Benefits of having a Two Wheeler Insurance:
Having a two wheeler insurance offers you plenty of benefits. Here are a few of them you should know about:
Pays to Replace if you Lose the Vehicle
Imagine you lose your bike due to some burglary or some fire, and you can’t find any trace of it. One thing worth noting here is that the insurance company only pays the estimated sale value of the vehicle at the time of its loss.
Pays to Repair Damages
Imagine you were caught in the middle of a riot and your vehicle had to suffer the wrath of some remorseless rioters. Having an insurance actually allows you to get a vast majority of the costs reimbursed.
Don’t Need to Pay Out of Your Pocket
Accidents, whether intended or not, is pretty common in India and damages occur as a result of these accidents. Having insurance would mean that you don’t need to shell out money from your own pocket to settle the expense of treatment or repair. This is because the policy will cover all the costs you will incur.
Can you Escape by not Owning a Two Wheeler Insurance?
While it is quite hard for the government to individually track and find out whether you have an insurance or not, it has traffic police officers doing their duty. To answer the question, yes, it is easy to escape by not owning a two wheeler insurance. However, that particular scenario only works when you don’t get caught by the police. In case you do, you will need to shell out over Rs. 5,000 as a fine.
Besides, the country’s transport ministry is working with National Informatics Centre (NIC), wherein it sends a list of non-insurance holders to the traffic police who are allowed to take strict action against them.
All in all, in a country where an at least 4 accidents occur every minute, having a vehicle insurance is the only way to make sure that you don’t go bankrupt.