Uninsured two-wheelers are a significant security concern

India’s roads have develop into busier over time as common per capita revenue rises, resulting in extra folks buying two-wheelers. With the world’s third-largest street community, the nation had 354 million autos as of FY22, as per Statista. But, a big concern stays— lack of insurance coverage amongst automobile house owners.
| Photograph Credit score: The Hindu

Annually, numerous lives are misplaced on Indian roads attributable to accidents. India has the best variety of street accidents globally, pushed by reckless driver behaviour, non-compliance with site visitors guidelines and human errors. Alarmingly, two-wheeler fatalities rose by 8% in 2022, claiming almost 75,000 lives — accounting for 44% of the 1,68,491 street accident deaths that 12 months.

India’s roads have develop into busier over time as common per capita revenue rises, resulting in extra folks buying two-wheelers. With the world’s third-largest street community, the nation had 354 million autos as of FY22, as per Statista. But, a big concern stays— lack of insurance coverage amongst automobile house owners.

As per a Normal Insurance coverage Council report, over 60% of autos in India are uninsured, with two-wheelers main the class. In 2015-2016, Solely 8.26 crore of the about 19 crore registered autos have been insured.

Causes for hesitation

Though, third-party motor insurance coverage is obligatory, many automobile house owners stay uninsured. This challenge stems from three key components: many bike house owners keep away from insurance coverage to save cash, and those that purchase, typically fail to resume insurance policies and lack consciousness about insurance coverage merchandise.

However being uninsured can severely jeopardise your monetary safety. Within the occasion of a street accident inflicting property harm or damage, it’s a must to bear all prices out of pocket.

Taking precautions by insuring your automobile is much better than regretting it later. Driving with out insurance coverage additionally carries authorized penalties. First-time violators face a wonderful of ₹2,000 and/or as much as three months in jail. Repeat offences incur a ₹4,000 wonderful. Listed below are your choices for insuring two-wheelers viz.

Two varieties of bike insurance coverage can be found: third-party insurance coverage and own-damage (OD) insurance coverage.

Third-party insurance coverage

This obligatory protection protects in opposition to liabilities arising from harm to another person’s property or damage in an accident. Compensation is determined by components like severity of accidents, third get together’s age, and their career or revenue.

The utmost compensation for a 3rd get together demise is set by the courtroom, and the utmost compensation for third get together property harm within the case of motorcycle insurance coverage is ₹1 lakh. Nevertheless, this coverage doesn’t cowl: harm to your individual bike, belongings inside your bike throughout an accident and theft or complete destruction of motorcycle.

The Insurance coverage Regulatory and Growth Authority of India (IRDAI) determines the premium for third-party insurance coverage primarily based on engine capability. For instance, the premium for bikes with engines between 75 CC and 150 CC is ₹3,851 for a five-year coverage. The IRDAI has mandated five-year long-term third-party bike insurance coverage to chop renewal hassles.

OD insurance coverage

This coverage covers damages to your bike attributable to hearth, theft, pure disasters or man-made incidents. Usually bundled with third-party insurance coverage, it provides enhanced safety. Add-ons like zero depreciation cowl, roadside help, key and lock alternative, tyre protector, and bill worth can assist you increase protection.

Personal harm insurance coverage insurance policies are legitimate for one 12 months and should be renewed yearly. Nevertheless, many insurance coverage corporations have additionally began providing long-term plans like 3+3 years, that are extremely reasonably priced. The premium is determined by components just like the automobile’s age, registration location, make and mannequin, and voluntary deductibles.

For all-around safety, a complete coverage combining third-party and OD insurance coverage is really useful.

Complete bike insurance coverage provides peace of thoughts by making certain monetary safety within the occasion of an accident. It safeguards not simply your funds but additionally offers protection for unexpected conditions like theft, pure calamities, and third-party liabilities.

Because the variety of autos on India’s roads continues to rise and the danger of accidents grows, having ample insurance coverage is not only a authorized want however an important step in defending your self and others.

Complete bike insurance coverage provides peace of thoughts by making certain monetary safety within the occasion of an accident. Give it some thought—you’ve invested a lot in your motorbike, a companion on your each day rides and cherished journeys.

With at the moment’s expertise, shopping for or renewing bike insurance coverage is extremely easy and could be performed in underneath a minute. This small step ensures your security, safeguards your bike, and retains you ready for any surprising state of affairs on the street.

(The author is head, two-wheeler insurance coverage, Policybazaar.com)