Consequences of Not Buying A Bike Insurance Policy
In India, driving on a road without a legitimate third party liability policy is unlawful. A valid bike insurance policy helps to keep away the legal complications and also keeps your bike secured against untoward incidents.
As per the Indian Motor Tariff, every bike which plies on Indian roads should have at least a valid third-party bike insurance cover. A bike insurance policy not only helps to keep the legal complications at bay but also safeguards you and your vehicle against unprecedented incidents. It guards your finances and enables you to ride your vehicle with complete peace of mind.
Consequences of Not Buying a Bike Insurance Policy
Driving a bike without a legitimate third-party insurance cover is an offense as per Indian law. Following are some of the consequences of driving a bike without a bike insurance policy:
- Pay For Third Party Losses
In the case of an accident caused by your bike, if you have damaged the property of a third party or harmed them, then you will have to pay for all third party liabilities yourself in the absence of at least a third party bike insurance.
- Non Compliance Fine
Riding a bike without a valid third party insurance policy is punishable with a fine of INR 2,000 and/or 3e months imprisonment.
- Pay For Your Own-Damages
You will have to pay for the damages sustained by your own bike. However, if you have standalone own damage insurance or a comprehensive plan, then the loss for such damages is compensated by the insurance company.
- Loss of No Claim Bonus
If you do not renew your insurance within 90 days of the earlier bike insurance expiry date, you may lose your No Claim Bonus which can go up to 50% of your own-damage premium.
Must Check
Two Wheeler Insurance Companies
Also, Read
Two Wheeler Insurance Comparison - Importance, Steps and More
IRDAI Guidelines For Bike Insurance Policies In India
Conclusion
Not buying a bike insurance policy can pose a hazard of third-party liabilities and can attract heavy penalties if caught. Hence, ensure to drive a bike with at least third party bike insurance to avoid paying any fines or to fall in legal troubles.
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.
