Is Two-Wheel Insurance Mandatory in India?

According to the Motor Vehicles Act, all bike owners must have a two-wheeler insurance policy, especially third-party insurance. Third-party insurance protects the lives and property of others in the event of an accident. With third-party bike insurance, one can file a bike insurance claim for the damages caused by the other vehicle in an accident. It is compulsory not only in India but throughout the world.

Why is Third-Party Insurance Required?

In every road accident, there is a high possibility of damage to personal property and the life of an innocent person. However, if you have third-party insurance, it will be easy for you to compensate the third-party accident victim without facing financial hardship. Every vehicle would have third-party liability insurance in an ideal world, but this is not the case in India where nearly 60% of vehicles are uninsured. As a result, most innocent accident victims are forced to pay for treatment or repair costs out of their own pockets. This is why third-party auto insurance is required.

How Can You Take Two-Wheeler Insurance Plan?

In this digital era, getting bike insurance is a click away. I firmly believe the online approach for renewing bike insurance is convenient and economical. You can do it anytime with companies like Tata AIG’s two-wheeler insurance online policy, and take advantage of the benefits of the coverage to lessen your financial load.

Legality and Compulsory Nature of Two-Wheeler Insurance

Yes, in India, under the provisions of the Motor Vehicles Act, it is mandatory that every vehicle should have a valid third-party act liability insurance to drive on the road. Any vehicle used for social, domestic, and pleasure purposes, as well as for insurers' business or motor purposes, has to be insured. The reason for this is that an individual may not be concerned about the loss/injury to themselves and their vehicle, but the law holds them liable to compensate for loss/injury to a third party moving in public places. If you do not have the mandated cover and are unable to pay, the third party will not get compensation in time. If you do not have compulsory third-party liability cover, the law will require you to fulfill the award of the court.

Further, the insured can opt for an own damage cover. Insurance companies offer a package policy which covers both third-party liability and own damage.

Insurance companies are primarily needed for catering to liability to third party, which can be phenomenally expensive for any individual. An individual can easily bear their individual loss, but the court award for third-party liability will destroy their finances.