People often shy away from getting car insurance to save money. But, this carelessness can create big trouble for you. Car insurance doesn’t just help you with cash in case of an accident. There are many other reasons as well, due to which vehicle insurance is critical. To understand these reasons, in this article, we have listed the benefits of bike insurance. The same applies to a car or any other type of motor vehicle.
Benefits of Bike Insurance
By ensuring your bike or any other two-wheeler, you are saved from the following types of troubles-
1. Pay penalty on accident and avoid legal action
According to the Motor Vehicles Act, 1988, in India, it is mandatory to ensure any engine-driven vehicle. It is mandatory to have a copy of it with you while driving the vehicle. Action can be taken if you are caught driving without insurance. Penalty up to Rs 1000 or imprisonment for 3 months. Or both the punishments can be given together. Due to continuous negligence, your driving license may also get canceled.
2. The insurance company bears the responsibility of indemnification for injury or loss to another
Compensation for damage caused to another person by your vehicle is decided according to the financial status of that person. In such a situation, it can also be very heavy for you. The first advantage of getting bike insurance is that it protects you against third-party liabilities. Compensation, etc., which has to be paid by your vehicle to any other person, vehicle, or property, comes under third-party liability. The cost of treatment of that person, trial in case of the court case and lawyer’s expenses etc. also come under this third-party liability. If you have not got bike insurance, then you have to bear all these expenses. The insurance company pays such damages when there is bike insurance.
3. Compensation in case your bike is damaged, stolen, or destroyed
If you have taken Comprehensive Insurance, then apart from Third Party Liability, you also get the benefit of Own Damage Cover (First Party Insurance). Own Damage Cover also covers damages caused to your bike in case of an accident. In addition to road accidents, damages caused by manufactured calamities, natural calamities, fire, etc., are also covered under this. The insurance company pays damages even if the bike is stolen or completely destroyed.
4. Help you/your family when you hurt yourself
Now it has become mandatory to take personal accident insurance of Rs 15 lakh along with insurance with any vehicle. Whether you have got only Third Party Insurance, or have taken a comprehensive plan. With this, you or your family members can get the help of up to 15 lakhs in case of damage to you (rider or driver) in an accident. Depending on the level of damage, assistance is provided up to 50 percent or 100 percent. If you do not have bike insurance, you or your family cannot get this help.
Note: With the help of addon personal accident cover, you can also increase the limit of 15 lakhs. You can also take insurance cover for your co-passenger.
5. Cashless Repairing and Cashless Treatment Facility
Some insurance companies offer cashless repairs to their contracted garages through Add On Cover. Later the insurance company pays it. Similarly, with the help of the Cashless Hospitalization add-on, you can also get the facility of treatment without spending any money in case of injury to the bike driver. Similarly, Zero Depreciation, No Claim Bonus, etc. add-ons also have options to strengthen your insurance protection.
6. Feeling of Mental Security and Peace
A lot of understanding is required to deal with situations after an accident. Its technical aspects are quite complicated, for which you may need a lawyer, insurance specialist, etc. All these things take a lot of time and mind. On having bike insurance, all these hassles are settled by the insurance company. You only have to deal with some basic processes. In this way Bike Insurance also gives you mental peace and security.
See Also: What is Home Insurance?
