Riding Without Bike Insurance Is A Risky Gamble

Introduction

Ever since Rohan became a senior marketing executive at a top firm, he had his eyes set on the Royal Enfield bike worth ₹1.5 Lakh. He saved diligently and finally bought his dream bike after 1 year. However, when the time came to buy insurance, he chose to skip it. Reason ? He had already invested a lot in the bike and had confidence in his driving skills. Is it right, though? 

India has a big challenge with road safety; sadly, two-wheelers are a significant part of the problem. Reflecting on the roads in 2022, the number of accidents was substantial – 4.6 Lakh. Sadly, 1.7 Lakh victims lost their lives, and 4.43 Lakh got injured.

In this blog, let’s explore the risks Rohan has invited by not having bike insurance to understand the overall importance of bike insurance.

Risks Of Not Having Bike Insurance

Riding a bike without insurance can lead to several legal and financial repercussions. Here are some of them:

Legal Risks

Under the Motor Vehicles Act of 1988 in India, it is mandatory for every two-wheeler to at least have third-party liability insurance. The new Motor Vehicle Act of 2019 can hit you hard if caught without it, to the extent of a penalty of up to  ₹2,000 if caught for the first time. Second-time offence invites a fine of up to ₹4,000 and/or imprisonment of three months.

Financial Risks – Third-party Damage 

Consider, for example, Rohan colliding with a parked commercial truck. He was not injured, and his bike had a small scratch. However, he broke the headlight and mirror of the parked truck. Now, if the owner of that truck decides to take this issue through the legal route, Rohan can be held responsible for paying for those damages. So, the more severe the damage is, the higher the financial liability.

The same is applied to the damages done to any individual or property. Like Rohan, you can be held responsible for paying for the treatment, as well as compensation in case of the death of any third party.  In the case of insurance, the insurer bears this cost for him. 

Financial Risks – Own Damage

Imagine if his bike had been damaged due to this accident, He would have got a long list of bills for repairs to his bike. Similarly, in the case of damages beyond repair, Rohan may have lost all the money he invested in his bike in a flash. 

Guess what, with the right bike insurance, the insurer takes care of such damages to the bike as well as compensates for the bike value in case of complete scrapping of the bike, i.e., if the bike is damaged beyond repair.

A similar scale of loss can also happen to him in case of theft, which is completely unpredictable. Insurance can protect Rohan’s finances during such scenarios. 

Bike’s Value Depreciates

The price Rohan paid for his bike may have been costly to him. But while reselling, Rohan will face the hard reality of his bike’s ‘depreciating value’. Just 2 years from the purchase, if he tries selling his bike, he may find buyers offering 50% of the invoice value. It can get even worse if he doesn’t have the right insurance in place. The bargaining power of buyers while buying second-hand bikes increases multi-fold if insurance or other documents are not handy with the owner.

How To Avoid The Risks Of Not Having Bike Insurance?

Now that we understand the risks, let’s discuss how we can mitigate such risks and ride hassle-free: 

• Do Not Delay Your Insurance – Many people think they can buy it later and continue procrastinating. However, it is important to understand that risks and accidents come uninvited. Hence, it is critical to buy bike insurance as early as possible. 
• Purchase Adequate Insurance – Never be caught on the road without insurance. You need at least third-party liability coverage to adhere to legal guidelines. Avoid traffic fines or vehicle seizures by always carrying up-to-date motorcycle insurance. 
• Invest In The Right Add-ons – Be highly careful when choosing bike insurance. Do not try to minimise the cost, rather think about the maximum risks you can mitigate with the right insurance in your budget. To do so, analyse the risks on your bike and get add-ons like road assistance, zero depreciation, engine protection, back-to-invoice, etc., but again, do not over-insure. Buy what’s required.   
• Always Carry Your Insurance – If you have insured your bike, do not forget to carry it with you all the time while you ride it. Nowadays, most insurance companies offer a soft copy of the two-wheeler insurance policy. Today, you can carry a digital copy of insurance as well with you to avoid traffic fines or refer them while raising claims. You can save it in DigiLocker to avoid being penalised and also check if your policy details are updated on Vahan.

Key Takeaways

Riding without bike insurance is like walking on a high wire without a safety net. The risks are serious, and the financial burden can be too much to handle if something goes wrong. Not having insurance puts you at risk of legal issues, a fine for not having two-wheeler insurance, expensive medical bills, and repair costs. So, why take the chance? Bike insurance is not just a precaution; it’s a must-have for every rider in India.

Additionally, consider platforms like PhonePe for a seamless and hassle-free insurance purchase experience.