It would help if you insured your two-wheeler as soon as you purchase one. It is a requirement in India. Although many riders are aware of this rule, there is another one that they need to become more familiar with. In addition to a new two-wheeler, a bike must also have a five-year third-party insurance policy. Since 2018, the Indian Supreme Court has mandated this.
5 Years Of Two-Wheeler Insurance Guidelines
The IRDAI published a guideline in August 2020 that slightly modified the five-year insurance purchase rule. These are the new guidelines: #
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New Two-Wheelers Must Have A 5-Year Third Party (TP) Policy But Not An Own Damage (OD) Policy.
Insurance regulations are slightly different for new bikes. You are required by law to purchase third-party liability insurance for five years when you purchase a new motorcycle. However, The damaged component is only available for purchase for a year. There are packages of plans that combine a one-year own damage cover with a five-year third-party liability cover. * [1]
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Starting In The Following Year, You Can Purchase A Standalone OD Plan To Protect Your Own Vehicle
You can choose whether to cover your own damaged component after completing the required one-year OD cover. There is no longer a requirement, so you can decide based on your needs. *
Recognising The New 5-Year Two-Wheeler Insurance Rule
The requirement to purchase five-year bike insurance only applies to the third-party liability portion. You must only purchase a third-party liability bike insurance plan for five years. A standard procedure will do if you choose a comprehensive bike insurance package. This is a crucial element that needs to be kept in mind. For a two-wheeler, third-party insurance is required for 5 years; therefore, get it as soon as possible.
The Rationale Behind The Requirement For 5-Year Bike Insurance
The IRDA ensures maximum insurance coverage for extended periods by selling a mandatory 2-wheeler online plan for five years.
To Prevent Policy Lapses
When a two-wheeler insurance online plan is purchased, the vehicle is covered for five years, eliminating the risk of coverage gaps and bike insurance policy lapses. For this reason, you insure your two-wheeler for five years. #
To Examine The Issue Of Non-Insurance
Many people choose not to renew their two-wheeler insurance online to save money. The new 5-year bike insurance validity greatly mitigates this issue. ##
Cost Effective
Purchasing bike insurance online for a longer period is more cost-effective because the premium is fixed and doesn’t rise annually. The NCB then continues to be protected due to fictitious policy lapses. Last but not least, you won’t have to be concerned about missed deadlines that result in unwarranted policy lapses and unintentional breaks in the Bajaj Allianz two-wheeler insurance coverage. * ##
Two-wheeler insurance is mandatory for a period of five years in India. This regulation was implemented to ensure riders’ safety and financial protection and minimise the number of uninsured vehicles on the road. B enforcing a longer duration of coverage, the policy aims to encourage responsible vehicle ownership and reduce the financial burden on accident victims.
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* Standard T&C Apply
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.