LogicKyahai – Is two wheeler insurance compulsory?

Two-wheelers, Passenger Cars or commercial vehicles, name any or all of them, every vehicle should have an insurance. Just like, any health insurance covers the insured person against an unforeseen and unfortunate event, a motor insurance covers the insured vehicle against such episodes. The former being opted out of choice, however, the latter is a type of General insurance, compulsory under the Indian Motor Act.

Are you planning to buy a 2 wheeler and have concerns with regards to the benefits of having an insurance?

Auto Insurance in India is a compulsory requirement for all new vehicles used whether for commercial or personal use.

Insurance allows you to transfer your risk from an unforeseen event over to the Insurance companies by paying a small amount as premium. It is actually an agreement stating that in case of an accident or any other issues that are covered under the chosen policy, the insurance company will undertake the charges to repair the same.

If an insured two-wheeler meets with an accident and the bike owner is unable to pay the repair charges, the insurance company will do the needful after a small investigation. Auto Insurance claims can be accidental, theft claims or third party claims. Certain documents are required for claiming the above, like duly signed claim form, RC copy of the vehicle, Driving license copy, FIR copy, Original estimate and policy copy.

Two wheeler insurance can be bought from any of the General insurance company. The validity period being between 1 to 3 years.

Auto premium is determined by a number of factors and the number of premium increases with the rise in the price of the vehicle.  The premium for renewal is calculated on the basis of the current market value of the vehicle which generally reduces on a yearly basis. Additionally, the premium further decreases, if no claims are made during the last policy period.

Important Things to Know Before You Buy Two Wheeler Insurance

  • Insured Declared Value
  • The Kinds of Coverage that Exist
  • Type of Plan You Choose
  • No Claim Bonus
  • Aspects that Impact Your Premium

 

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