Bike Insurance: As a necessary element of daily life, you must ensure that your cherished two-wheeler is adequately insured.
And here is when bike insurance coverage comes in handy. It is required in India to get two-wheeler insurance for your bike/two-wheeler.
Regular advancements in the area of insurance are made under the Insurance Regulatory and Development Authority of India (IRDAI) to make the two-wheeler insurance laws easier and clearer. The bike Insurance IRDAI guidelines make it simple for a bike owner-rider to understand his responsibilities on the road. We’ll look at the IRDAI requirements for bike insurance coverage in this article:
Insurance for Third-Party Bikes IRDAI Regulations
Third-party insurance is required for all motorized two-wheelers under the Motor Vehicle Act of 1988 and the IRDAI rules for bike insurance in India. The TPI covers third-party damages, which means that if you inadvertently cause harm to a third party while riding, you are covered. A third party might be a person, a vehicle, or real estate.
Remember the following guidelines:
- Third-party insurance would not cover your own losses.
- The amount of compensation to be awarded is determined by the court.
- In the event of the insured’s untimely death or harm to a third party, the insurer will pay for the damages that you are obligated to pay.
TPI regulations for new motorcycles
Here are some guidelines to follow while shopping for a new bike:
- All new motorcycles purchased after September 1, 2018, must have five years of third-party liability insurance. The IRDAI has made it necessary for all bikes to have long-term TP coverage.
- The IRDAI has recently issued a decision to increase the Personal Accident Coverage from INR 1 lakh to INR 15 lakhs.
- The IRDAI has also unbundled the PAC and made it available for purchase as a separate policy. If you are currently protected by the mandatory PAC via an insurance provider, you must purchase another PAC when you acquire a new car.
Bike Insurance That Covers Everything IRDAI Regulations
A comprehensive bike insurance policy, as the name implies, provides broader coverage. Aside from third-party liability, it also covers damages to your bike in the event of an accident.
Remember the following guidelines:
- Natural disasters such as floods, earthquakes, and landslides are covered.
- Damages caused by man-made disasters such as rioting, vandalism, and terrorist activity are covered.
- Your bike has been stolen.
- Damages/losses covered by add-on benefits are also covered by the insurer.
- In the event that your bike is totaled, the insurance provider will pay you.
Other Insurance Requirements for Two-Wheelers
- If traffic regulations are not obeyed, fines ranging from INR 500 to INR 1000 may be issued.
- If a rider refuses to comply with authorized employees, he or she may face a punishment of INR 5,000.
- If caught riding without a valid driver’s license, the rider may be fined INR 5,000.
- Excessive speeding is punishable by a fine of INR 1,000.
- Dangerous driving may put you in prison for 6 months and a fine of INR 1,000.
Insurance for Bikes Personal Accident IRDAI Rules (PA) Cover
PA Cover is a legal requirement for the owner-driver of the insured motorcycle. Third-party and comprehensive bike insurance are also available. This includes the following:
- In the event of the owner’s complete handicap or death, a sum insured of INR 15 lakhs is payable.
- The remuneration is structured as follows:
- If the coverage is for death, the whole money insured will be paid as compensation.
- If both limbs, both eyes, or one eye and one limb are lost in an accident, 100 percent of the money insured will be given as compensation.
- If just one eye or one limb is covered by the policy and is lost in an accident, 50 percent of the money insured will be given as compensation.
Also Read: Purchasing Bike Insurance: 11 Mistakes You’ll Never Make Again
Insurance for Bikes Exclusions under the IRDAI Rules
Despite the broad coverage provided by a two-wheeler insurance policy, many circumstances are not covered by the insurance provider. These exclusions are governed by IRDAI standards and are obeyed by all insurance companies:
- Damage to your two-wheeler will not be covered by third-party insurance.
- Damages to a two-wheeler’s electricals and mechanical systems are not covered.
- If the rider was under the influence of alcohol or drugs at the time of the accident, the claim will be denied.
- If the rider does not have a valid driver’s license, the claim will be denied.
Knowing the bike Insurance IRDAI guidelines can help you better comprehend your bike insurance coverage. You would understand how your insurance operates and what it covers. It is essential that you remain up to speed on the latest requirements in order to maintain your cherished two-wheeler properly covered.