Have you finalized your decision to buy a bike? Well, then congratulations! Riding your bike around the city will not only help you traverse through the traffic quickly but also save you time and money. And with so many different makes and models out there in the market, it is relatively easy to get a bike that suits your personality.
Your excitement to buy a new bike should not be dampened by the incidents that other bike owners usually face. While there are a few ways by which you can avoid some of those risks, it is very difficult to eliminate all of them. The smartest way to handle such situations is to buy two wheeler insurance.
And there is another good reason for buying a bike insurance policy. You see, the Motor Vehicles Act of 1988 governs the Indian driving rules and regulations. And according to this law, it is mandatory for all vehicles to have valid insurance on them always. The mandate is for a third-party policy at the minimum so that you can ride legally on the public roads.
What is Long-Term Third-Party Policy?
The IRDAI or the Insurance Regulatory and Development Authority of India made some changes to the regulations, a move that made buying two-wheeler insurance a tad expensive. As per the new regulations, anyone buying a new bike would have to pay an insurance premium for five years for third-party liability cover up front.
These long-term third-party liability policies are now mandatory for new bikes or cars purchased. The ruling states that no vehicle can ply on the Indian roads without a valid third-party liability policy. A third-party policy is essential in covering any damages or injuries done to third party individuals or properties during an accident.
What Is a Third-Party Liability Policy?
A third-party liability policy is one of the most affordable two-wheeler insurance available in the market. The intent of the policy is to offer coverage for damages or injuries caused to individuals or properties as a part of an accident. These policies are easy to process which ensures quick turnaround time without many hassles with documentation.
The policy doesn’t offer a coverage for own damage component which helps keep its cost down. And most importantly, buying a third-party policy will ensure complete peace of mind. Foremost, you get the much-needed legal clearance to ride your bike. And secondly, you would no longer be worried about financial situations that can put your plans at a risk.
The IRDAI governs the premiums that you end up paying for third-party policies. The following chart outlines the standard premiums that you will end up paying, depending on your bike’s engine capacity.
|Up to 75 cc
|Between 75 cc and 150 cc
|Between 150 cc and 350 cc
|Above 350 cc
The introduction of long term or mandatory five-year third-party liability insurance was an initiative taken by the honorable Supreme Court in July 2018. Any vehicle purchased on or after 1st September 2018 will have to oblige to these changes. This frees up new bike owners from renewing their policies on a yearly basis.
If you buy bike insurance online along with the long-term liability plan, in the following years, you can choose to merely renew the comprehensive plan. You can login to any of the online aggregator websites to get a quote for your comprehensive plan. And when you need, you can buy bike insurance online which is both quick and hassle-free.