Motorcycle Insurance

Quick pointers to highlight why Motorcycle Insurance is important, very important!

Picture the following scenarios:

Scenario 1: Mr. A leaves his house for work on his bike. There is a huge traffic due to peak hours, he is running late for his office. Just when he finds an empty stretch of road and wrings his accelerator to make up for the lost time, a moped rider comes in front of him. Both of them fall on the road, both the vehicles take damage. Mr. A does not have a two wheeler insurance, so, he has to compensate the moped rider out of his pocket.

Scenario 2: Mr. A is travelling in his car with family on a happy Sunday morning. After a hectic week, he is looking forward to a fun filled weekend and has booked tickets for the morning show of a movie. Suddenly, he is stopped by a traffic policeman for a routine check. He does not have an insurance policy for his car and is fined as having an insurance is mandatory for any vehicle under Motor Vehicle Act and Insurance Act in India. As it’s a routine check, all the vehicles are being stopped and the whole process of stopping, checking and paying fine takes a long time. Mr. A ends up getting late for his movie and must bear the brunt of his family’s anger, cost of the fine and a ruined day – only to return to work after such a bad break.

Scenario 3: With his hard earned money Mr.A buys a used automatic scooter for his wife. His wife is delighted as she would now be able to travel easily, get the grocery, drop their daughter to school etc, all without relying on Mr. A or the public transport. Mr. A parks the scooter on the ground floor parking of his building. Unfortunately, the scooter gets stolen the very next night! Again, Mr. A had ignored getting an insurance which means that in an instant, he has lost all the money he paid to get the scooter and, more importantly, his wife’s happiness.

Poor Mr. A, right? Wrong! Had Mr. A been thoughtful enough to buy insurance for his bike, car and scooter in the first place, he would have been a happy man. Not just that, if he would have been driving a car instead of a bike (in scenario 1) the guy on the moped could have suffered heavy injuries. Or if his car would have been stolen instead of his scooter (in scenario 3), the monetary loss would have been much bigger. Paying a small premium for motor insurance policy brings a lot of peace of mind and a person’s overall losses in such scenarios reduce to a bare minimum.

Insurance is an important financial instrument which provides protection against any monetary damage arising due to theft, loss, accidents etc. Vehicle insurance in India is broadly categorized under two formats:

  1. Third Party Insurance: Also known as a liability policy, this type of insurance provides coverage for damages claimed by a third party for injuries caused to them or harm to their vehicle/property resulting from an accident or hazardous activity involving the insured person’s vehicle. Any injuries to the insured person or damages to his vehicle are not covered by this category of insurance and the person has to bear these costs himself.
  2. Comprehensive Insurance: This type of insurance provides cover to a third party similar to the third party insurance and additionally a cover to the insured person against damages caused to his/her vehicle involved in the accident or loss of vehicle due to theft. One other aspect of such insurance is possibility of having coverage for the injuries of occupants of vehicle during the accident but, this may entail a higher premium.

Why SHOULD You Buy Motor Insurance

  1. Vehicle insurance provides security against financial losses and liabilities caused due to an accident or theft of the vehicle.
  2. It also covers loss of a third party involved in the accident.
  3. In addition to this, according to the Indian laws it is mandatory for vehicle owners to purchase at least one type of vehicle insurance.
  4. And the biggest reason is – peace of mind!

With the opening of the insurance sector to private players, the industry has become very competitive resulting in a higher numner of insurers and better offers for the consumers making buying an insurance policy very easy. That is not all, a two wheeler insurance policy renewal can be done online with just a few clicks!

If you are like Mr. A mentioned earlier, there is still time – buy an insurance before it is too late.




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