When it comes to the security of your bike, nothing is more valuable than an insurance policy. If you have bought a car or bike insurance in the recent months, you must have questioned this at least once, is bike insurance mandatory for 5 years?
If you ask us, yes, if you purchase a new bike or car, there will be a mandatory long term insurance policy that you need to buy.
There must be many questions whirling in your mind right now. But, need not worry, we will enlighten you with all the necessary information regarding this new rule.
Which insurance is mandatory for Two-Wheeler?
Before moving on to this question, let us study the new changes in the insurance rules and regulations.
As per IRDAI (Insurance Regulatory and Development Authority of India), if you buy a new two-wheeler, it is necessary for you to get a long term bike insurance
policy. This rule has been in effect from September 2018.
The term period of the long term insurance policy may vary based on the type of policy you are buying.
For instance, if Gaurav has bought a new two-wheeler, he will have to buy a long term insurance policy for five years if he is opting for a third party insurance policy.
On the other hand, if Gaurav’s sister buys a new scooty for herself, she has to buy the long term two wheeler insurance
policy for three years if she is choosing the comprehensive policy cover.
The answer to the question is 5 years insurance mandatory also varies based on the vehicle you are purchasing. For instance, if you are buying a new car, you are entitled to get three-year insurance instead of five.
Why is bike insurance mandatory for 5 years?
Roads can be really dangerous if you are not careful. If in any case, some mishap takes place, your insurance can help you cover the damages. But, some of us do not consider insurance a beneficial investment. To be honest, it is pretty crucial to have insurance.
Moreover, the Motor Vehicle Act, 1988, mandates the riders to get an insurance policy. And as per new rules, it has also become necessary to buy a 5-year policy when you are buying a new two-wheeler. The question that surfaces here is, Why is 5 years insurance mandatory?
Here are some benefits of buying 5-year insurance for your bike:
The very first and best benefit of buying a long term insurance policy is the stress-free mind. With a 5-year third party cover or 3-year comprehensive cover, you will be free from the hassle of renewing the policy every year. It will save you a lot of time and most of all you don’t have to keep expiry dates in mind.
Pay lower premium
You also save a significant amount of money by buying a long term insurance plan for your vehicle. How? The one-time premium that you pay for a three or 5-year cover will be way less than the compiled annually paid premium amount for the same period.
Keep the NCB
NCB stands for No Claim Bonus. It is a discount that a rider gets on renewing his or her policy for making no claim in the past year. In case of an annual policy, if you have filed a claim, your no claim bonus will be Nil.
On the other hand, if you have a long term policy and you make a claim. Your NCB will not hit zero. You can still avail some percentage of discount on your policy premium.
Get a Refund
Unlike the annual policy where there is no refund. The long term insurance plan provides you a refund in certain scenarios.
For instance, if Gaurav loses his bike or it gets stolen, he can get a refund from his insurer if he has a long term policy. However, the refund amount (of the paid premium) will vary based on the time not utilised or the balance years of the policy.
After all, you will be in safe hands when you have a long term insurance policy. It will cover all the damages based on its type if any mishappening occurs.
- Is 3rd Party Insurance enough for a bike?
Yes, if you have 3rd party bike insurance
, it’s great for your two wheeler. However, if you are buying a new vehicle, it is best to opt for a comprehensive package for at least 2-3 years.
- Which insurance is mandatory for two-wheeler?
There are two types of policies, namely, third party and comprehensive. Although you can choose any of it for your bike, it is mandatory to have at least a third party insurance.