Insurance is often regarded as an added compliance when it comes to buying cars or bikes. But it is not just a legal requirement, but also has long term benefits in form of protection for damages as well as coverage from legal liabilities.
At first when you buy a new two-wheeler, you need to compulsorily buy a bike insurance plan, but it is quite common to miss out during its renewal. There can be many reasons, some personal, while other hesitation concerning the coverage it offers. But the ones who skip it, do not fully understand the legal consequences of not having one. This article mentions the different benefits of renewing your 2 wheeler insurance policy:
The first and foremost reason to ensure continual bike insurance renewal for each period till you own one is legal compliance. The Motor Vehicles Act of 1988 lays down the requirement where all vehicle owners, be it private or commercial vehicles, need to buy a vehicle insurance policy. The motive behind making insurance compulsory is to ensure the safety of pedestrians and other drivers on the road. Thus, the law stipulates that to have third-party coverage as bare minimum.
A two wheeler insurance third party provides protection against legal liabilities that may be sustained by such third person. This includes the damages to their property as well as any injuries sustained. However, any damages to your vehicle or injuries to the rider are excluded from third-party policy’s scope. For that, a comprehensive plan is an optional upgrade.
Since accidents do not only damage a third person’s vehicle, it also results in damage to your bike. Thus, it is essential to ensure coverage for your bike too. A comprehensive policy is just the right insurance policy that helps protect against legal liabilities and the repairs for your bike.
Protection against natural disasters and human induced events
A 2-wheeler insurance plan not only offers legal protection but also protects you from natural disasters that can damage your vehicle. In some cases, the damage is so severe that no repairs can be carried out and salvaging it is the only alternative. These natural perils come unannounced and having no insurance coverage or a break in your policy coverage can mean no compensation for such loss. Financial losses can be severe due to these disasters and an active policy by your side can help to avoid them. Not just natural disasters are covered, but man-made perils like theft and vandalism are part of the policy scope. * Standard T&C Apply
Availing NCB benefits
No-claim bonus or NCB is the benefit that insurance companies pass on when no claims are made during a policy tenure. With consistent renewal of your two-wheeler insurance policy, these NCB benefits are unlocked thereby lowering your insurance premium at renewal. This way, you can avail the same coverage, but at a lower cost for timely renewal. You can visit the official website of IRDAI for further details.
Right time to revaluate coverage
Renewal of your insurance policy is the right time to revaluate the policy coverage. Any changes in features can be decided at this juncture. Thus, timely renewal helps you to decide upon the coverage well in advance without any breaks.
These are some benefits of why you must renew your policy on time. When buying one, remember that insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.