Why insurance is mandatory for bike?

Why insurance is mandatory for bike?

Under the Motor Vehicles Act, the Government of India has made it mandatory for every bike owner to have an insurance policy. Having an insurance policy ensures that they avoid the burden of unforeseen expenses in case of an accident or theft of the vehicle.

Which insurance is compulsory in India for bike?

Having third-party insurance is anyway compulsory for all vehicles as per the Motor Vehicles Act, 1988. If you have just bought a brand new scooter or bike and decided to go with basic third-party bike insurance, you will necessarily have to buy a 5 year insurance policy.

What does compulsory mean on motorbike insurance?

Compulsory Excess Compulsory excess is an amount of money that the insurer says you must pay towards the cost of any damages in the event of a claim (a request for a payment in accordance with your insurance policy).

Why motor insurance made compulsory by law?

The most basic premise of having car insurance is that if you injure someone on the road in an accident, you’ll be able to make a claim to compensate him or her for their injuries as well as any physical damage done to their vehicle. For that, you’ll need personal accident insurance which requires a separate policy.

Which insurance is compulsory for two-wheeler?

For those who are not familiar with the law governing bike insurance—purchasing at least a Third-party Liability Two-wheeler Insurance Policy is compulsory in India. This rule is in accordance with The Motor Vehicles Act. If you fail to comply with this law, you will have to face monetary penalties.

What type of bike insurance is mandatory?

Therefore, there are two major types of bike insurance policies available in the Indian market: Third-party Liability and Comprehensive Bike Insurance. Of these, the Liability Plan is mandatory. The Comprehensive plan offers wide-ranging coverage and includes the mandatory cover.