Driving Without Insurance? Penalty doubled to Rs 2,000; Here is how to get bike insurance online

Driving Without Insurance? Penalty doubled to Rs 2,000; Here is how to get bike insurance online

For new bikes purchased after September 1, 2018 (registration date) , the third-party premium has to be paid upfront for 5 years.

Motor Vehicles Act 2019: The Motor Vehicles (Amendment) Act 2019 or the Motor Vehicles Act 2019 that has come into effect on September 1, 2019, has turned the wheels of most owners of two-wheelers towards insurance companies. Those who were plying un-insured vehicles are reaching out to insurance companies to get their bikes insured. Getting two-wheeler insurance is not a difficult and time-consuming task either. One may go for two-wheeler insurance online or two-wheeler insurance renewal online too. For third-party insurance, two-wheeler insurance rate is the same for online or by visiting a branch office of a general insurance company.

The new Act tightens the rules and road-traffic regulations like issuance of driving license and prescribes stricter penalties for violations. According to Gurneesh Khurana, President & Country Head – Motor Business, Bajaj Allianz General Insurance, “ It is estimated that more than 70 per cent of the 2 wheelers plying on the Indian roads are uninsured. It is primarily due to unawareness about its importance and few of them purchase it only for the reason that it’s mandatory by law, others due to negligence remain uncovered to the adversities that they may face in case their 2-wheeler causes damage to a third party, the liability of which as of now is unlimited and can run into crores.”

To avoid getting caught by the traffic department, a two-wheeler owner should at least have a Third Party Liability insurance, which is compulsory insurance before playing the vehicle on the roads. In the absence of Third Party insurance, the amount of fine itself has doubled. “As per the new Motor Vehicles Act, the penalty for not having Third Party Liability insurance has doubled from Rs. 1,000 to Rs. 2,000. Hence, it is wise to opt for insurance where the premium rates for 2 wheelers are comparatively low and one can rather opt for insurance than pay fine,” says Khurana.

According to Digit Insurance, a general insurance company, there is big rise in the demand for insurance policies over the previous month – “Certain states saw a significant jump in policies with Delhi being first on the list with 1371 per cent (highest) followed by Jharkhand- 818 per cent, Odisha- 719 per cent Chhattisgarh – 679 per cent and Kerala – 660 , respectively. Other states that saw a significant rise are Uttarakhand- 649 per cent, Haryana – 478 per cent, Meghalaya – 450% , Bihar – 388 per cent, Andaman and Nicobar -338 per cent, Assam – 300 per cent, UP – 298 per cent, Himachal Pradesh -235 per cent and Chandigarh – 224 per cent.”

For buying or renewing bike insurance online, you may visit few online websites of insurers and insurance aggregators and use the two wheeler insurance premium calculator to find premium for ‘One Damage’ cover as well. It is always better to have a comprehensive policy that includes Third Party insurance and One Damage cover as well.

For new bikes purchased after September 1, 2018 (registration date) , the third-party premium has to be paid upfront for 5 years. The own-damage (OD) premium may still be paid on an annual basis. Under a  Long Term, Comprehensive Policy both TP and OD coverage is for 5 years. Here the premium is also collected for 5 years and policy renewal will come into question only after 5 years when the policy is about to expire.

IRDAI had already enhanced the coverage for the personal accident from Rs 1 lakh to Rs 15 lakh. This rule will apply even to the existing owners. While, earlier the annual premium of Rs 50 was to be paid for a cover of Rs 1 lakh, now the annual premium will be Rs 750 for a cover of Rs 15 lakh. Further, insurers cannot force owners to take a long term PAC and hence one may buy a one-year PAC as well. As a relief, effective January 1, 2019, IRDAI has unbundled the compulsory personal accident cover and permitted the issuance of a stand-alone policy. So, effectively, one need not pay for PAC again if he or she has a PAC of at least Rs 15 lakh bought from same or any other insurance company.

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