Uninsured two-wheelers are a significant security concern
India’s roads have change into busier over time as common per capita revenue rises, resulting in extra individuals buying two-wheelers. With the world’s third-largest street community, the nation had 354 million automobiles as of FY22, as per Statista. But, a major concern stays— lack of insurance coverage amongst automobile homeowners.
| Photograph Credit score: The Hindu
Annually, numerous lives are misplaced on Indian roads as a consequence of 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 practically 75,000 lives — accounting for 44% of the 1,68,491 street accident deaths that 12 months.
India’s roads have change into busier over time as common per capita revenue rises, resulting in extra individuals buying two-wheelers. With the world’s third-largest street community, the nation had 354 million automobiles as of FY22, as per Statista. But, a major concern stays— lack of insurance coverage amongst automobile homeowners.
As per a Common Insurance coverage Council report, over 60% of automobiles in India are uninsured, with two-wheelers main the class. In 2015-2016, Solely 8.26 crore of the about 19 crore registered automobiles have been insured.
Causes for hesitation
Though, third-party motor insurance coverage is obligatory, many automobile homeowners stay uninsured. This problem stems from three key components: many bike homeowners keep away from insurance coverage to economize, and those that purchase, usually 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 injury or harm, you must 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 superb of ₹2,000 and/or as much as three months in jail. Repeat offences incur a ₹4,000 superb. Listed below are your choices for insuring two-wheelers viz.
Two forms 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 towards liabilities arising from injury to another person’s property or harm in an accident. Compensation depends upon components like severity of accidents, third get together’s age, and their career or revenue.
The utmost compensation for a 3rd get together dying is set by the courtroom, and the utmost compensation for third get together property injury within the case of motorbike insurance coverage is ₹1 lakh. Nonetheless, this coverage doesn’t cowl: injury to your personal bike, belongings inside your bike throughout an accident and theft or whole destruction of motorbike.
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 brought on by hearth, theft, pure disasters or man-made incidents. Usually bundled with third-party insurance coverage, it presents enhanced safety. Add-ons like zero depreciation cowl, roadside help, key and lock substitute, tyre protector, and bill worth can assist you enhance protection.
Personal injury insurance coverage insurance policies are legitimate for one 12 months and have to be renewed yearly. Nonetheless, many insurance coverage firms have additionally began providing long-term plans like 3+3 years, that are extremely reasonably priced. The premium depends upon 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 beneficial.
Complete bike insurance coverage presents peace of thoughts by guaranteeing 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 automobiles on India’s roads continues to rise and the chance of accidents grows, having sufficient insurance coverage is not only a authorized want however an important step in defending your self and others.
Complete bike insurance coverage presents peace of thoughts by guaranteeing monetary safety within the occasion of an accident. Give it some thought—you’ve invested a lot in your motorbike, a companion to your every day rides and cherished journeys.
With at the moment’s know-how, shopping for or renewing bike insurance coverage is extremely easy and may be carried out in below a minute. This small step ensures your security, safeguards your bike, and retains you ready for any sudden scenario on the street.
(The author is head, two-wheeler insurance coverage, Policybazaar.com)
Printed – January 12, 2025 09:19 pm IST