Rule of Bike Insurance in India
Amrit Pal Singh 24-02-2025 Bike Insurance Bike Insurance, Two Wheeler InsuranceBike insurance is a crucial aspect of owning a two-wheeler in India. The Insurance Regulatory and Development Authority of India (IRDAI) mandates certain rules that every bike owner must follow. Here’s everything you need to know about bike insurance regulations in India.
1. Mandatory Third-Party Insurance
As per the Motor Vehicles Act, 1988, it is compulsory for all two-wheeler owners to have at least third-party insurance. This policy covers damages or injuries caused to a third party in case of an accident.
2. Comprehensive Insurance Policy
While third-party insurance is mandatory, bike owners can opt for a comprehensive policy that provides additional coverage for personal damage, theft, natural calamities, and more.
3. Penalties for Uninsured Vehicles
If you are caught riding an uninsured bike, you may face a fine of ?2,000 for the first offense and ?4,000 for subsequent violations. In some cases, legal actions may also be taken.
4. Long-Term Bike Insurance Plans
To simplify compliance, the IRDAI allows bike owners to purchase long-term insurance plans (3 or 5 years) to avoid yearly renewals.
5. No-Claim Bonus (NCB)
Bike owners who do not make any claims in a policy year are eligible for a No-Claim Bonus (NCB), which provides a discount on premium renewals.
6. Online Policy Purchase & Renewal
IRDAI promotes digital insurance policies, allowing users to buy or renew bike insurance online easily.
7. Personal Accident Cover
As per regulations, bike owners must have a Personal Accident (PA) cover of at least ?15 lakh to ensure financial protection in case of injuries or accidental death.
Conclusion
Understanding and following bike insurance rules in India is essential for your safety and legal compliance. Ensure you have valid insurance and renew it on time to avoid penalties and financial risks.