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Why Long-Term Bike Insurance Is Mandatory in India


Anywhere you go in India you will see a large number of two wheeler vehicles. They are the most popular mode of private transport across sectors and demographics – from sprawling urban cities to small towns to remote villages. They are affordable, fuel efficient, provide easy maintenance, maneuverable and provide no hassles in parking.

As the usage of two wheeler vehicles increases there is a corresponding rise in the occurrence of vehicular accidents. Third party Insurance is and has been mandatory for all vehicles under the Motor Vehicles Act, 1961. Bike Insurance is available online easily and at the click of a button. The Government of India has amended the rule to state that from September 1, 2018 all new vehicles purchased will have long term insurance compulsorily payable with the purchase of the new vehicle. To facilitate this insurance companies have made long term bike insurance policy purchase easily available in a quick and hassle free manner by just typing bike insurance online in your internet browser window and purchasing it from your insurance company’s website.

This amendment of long term bike insurance policy purchase at the time of purchase of vehicle - was made on the basis of the recommendations of the Supreme Court Committee on Road Safety – who made their recommendation based on statistics. The committee stated:

  • Firstly, that there were over one lakh cases of deaths due to road accidents in India every tear.
  • Secondly, of the 18 crore or so vehicles plying in India only about 6 crore or one this of them have the compulsory third party insurance on the vehicles.
  • In such cases the victim does not even get the insurance claim that they are entitled to – as the offending vehicle did not have the mandatory insurance.
  • Third party insurance is a fair basic insurance that is mandatory by law. It is for protecting the society in case of the vehicle owner committing a mistake and hurting a third party or their property. The third party insurance is economical, easy to process and protects only the third party. availability makes the process quick and accessible from any remote corner and doesn’t allow any excuses for not getting the done in a proper and timely manner. The comprehensive insurance which also protects the vehicle owner has not been made compulsory as this is allowed to be their prerogative and as it is more expensive – it is not compulsory.

To this effect the new rule has come in force from September 1, 2018. The effect of these new ruling has been that:

  • From September 1, 2018 – all new two wheeler purchasers will have to pay for and purchase of 5 at the time of purchase of the vehicle itself.
  • From September 1, 2018 – all new car purchasers will have to pay for and purchase 3 years third party vehicle insurance at the time of purchase of the vehicle itself.
  • Vehicle purchases will become more expensive – due to the combined insurance premiums that have become payable at time of purchase itself.

The desired end result of the Long term bike insurance policy being mandatory at time of purchase is that:

  • A larger percentage of on road vehicles will be covered under and compliant with the mandatory third-party insurance law in effect.
  • Accident victim will not be deprived of the compensation they rightly deserve because vehicle owners have been lax in obtaining the insurance.
  • The objective of social responsibility of the vehicle owners is achieved even by mandating it by law. Over time more accident victims would be able to get insurance for any damage to self or property as more vehicles would be covered by Insurance.

To sum it up – for all new vehicle purchases – the long term bike insurance policy is compulsory and vehicle owners cannot buy a vehicle without paying the upfront premium for all the years as per the amended rule.


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