Buying Two Wheeler Insurance? Here Are The IRDAI Rules For Two Wheeler Insurance Policies
Updated On Dec 09, 2021
IRDA guidelines for two-wheeler insurance contracts cover a wide range of topics, including how to utilize bike insurance, its policies, terms and conditions, inclusions and exclusions, and coverage length.
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When riding a two-wheeler on the road, you must adhere to specific norms and regulations. One of them is purchasing two-wheeler insurance. A set of guidelines for two-wheeler insurance plans has also been established by the Insurance Regulatory and Development Authority of India (IRDAI). Both bike insurance firms and policyholders are required to follow the IRDAI's guidelines.IRDA guidelines for two-wheeler insurance contracts cover a wide range of topics, including how to utilize bike insurance, its policies, terms and conditions, inclusions and exclusions, and coverage length.
IRDIA Rules For Two Wheeler Insurance Policies
The IRDA guidelines vary depending on the type of coverage. The regulations for various forms of insurance coverage are as follows:
Third-Party Two-Wheeler Insurance Requirements
The cost of any property damage or injuries to a third party caused by the policyholder's two-wheeler is covered by the third-party insurance policy. The following are the IRDA rules for third-party insurance:
- In the event that the insured two-wheeler causes damage or death to a third party, the policyholder's insurance company is required to compensate the third party financially, taking into account the magnitude of the loss sustained by the third party.
- The insurer is responsible for the cost of restoring damage to a third party's property caused by the insured's vehicle, up to a limit.
Guidelines for Two-Wheeler Insurance with a Comprehensive Policy
Under a comprehensive insurance policy, the insurance company must adhere to all of the third-party policy's requirements. In addition, the policy must fulfill the following guidelines:
- Any portions of the insured's two-wheeler that are damaged by natural or man-made disasters should be repaired or replaced at the insurer's expense.
- The insurance provider must bear the cost of the add-on coverage acquired by the policyholder.
- The insurance provider should compensate the policyholder in the event of theft or total loss of the insured's two-wheeler.
IRDAI's New Two-Wheeler Insurance Rules
The following are some of the new IRDA guidelines for two-wheeler insurance:
- If the punishment for a bike rider's crime is not clearly indicated in the new regulations, a challan of Rs. 500 for the first offense and Rs. 1500 for subsequent offenses would be charged.
- A penalty of Rs. 500 to 1000 will be imposed if you do not follow the road laws.
- If a rider refuses to assist with the authorities, he or she would be penalized an extra Rs. 2000.
- A punishment of Rs. 5000 will be imposed if the rider does not have a valid driver's license.
- After being disqualified, a rider will be fined Rs. 10,000.
- A punishment of Rs. 1000 will be imposed for exceeding the speed limit.
- The rider will be fined Rs. 1000 and/or sentenced to 6 months in jail for hazardous driving.
You should be aware of these IRDAI guidelines as a two-wheeler owner in order to take advantage of insurance advantages. It's possible that the regulations or penalties will change in the future. As a result, keep an eye on the rules to stay current. The Insurance Regulatory and Development Authority of India (IRDAI) is a government agency in India that regulates and develops the insurance industry.
It is a self-governing organization that oversees all aspects of the Indian insurance industry. The IRDA requires all insurance businesses in the nation to operate in compliance with its rules. The IRDAI has highly severe laws for two-wheeler insurance and other forms of insurance plans in the nation, and not only insurance firms but also policyholders must follow them.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.