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In recent years, two-wheeler insurance has become an essential requirement for all two-wheeler owners in India. As road safety concerns grow and the government tightens rules, the Ministry of Road Transport and Highways (MoRTH) has brought significant revisions in bike insurance legislation. The government of India has enforced 5 years of insurance for the two-wheeler rule.This measure by IRDAI (Insurance Regulatory and Development Authority), is intended to promote compliance and reduce the number of vehicles on the road. In this write-up, you will learn about the third-party mandatory 5-year insurance for two-wheeler rule and its various aspects.
Key Highlights
- Third-party two-wheeler insurance is mandated by the government for all new vehicles in India.
- The 5 years insurance for two-wheeler rule is necessary for all vehicles purchased after Sep'2018
- You can purchase and renew your 2-wheeler insurance online.
What is the 5 Years Insurance for Two-Wheeler Rule?
The 5 years insurance for two-wheeler rule became effective on September 1, 2018, following a Supreme Court ruling. According to this, all vehicles sold after the mentioned date must be insured with a 5-year third-party coverage at the time of purchase. It covers all third-party damages under the time frame. This ensures road safety measures, enforces compliance, and alleviates the financial burden on two-wheeler owners in the event of an accident.The 5 years insurance for two-wheeler rule largely addresses third-party insurance, required under the Motor Vehicles Act of 1988. However, bike owners can choose a comprehensive insurance package that includes both third-party coverage and own-damage coverage for 5 years.
Why is the 5 Years Insurance for Two-Wheeler Rule Significant?
The primary goal of mandating the 5-year insurance for two-wheeler rule is to increase the number of insured bikes on the roads and lower the number of lapsed or uninsured vehicles. Before this legislation, many owners would forget their annual bike insurance renewal or opt not to renew it at all. The lack of insurance not only violates the law but also puts riders and third parties at risk in the case of accidents.By enforcing a 5-year insurance coverage, the government maintains safety and compliance, lowering the risk associated with riding uninsured on the road. This law also streamlines the insurance procedure by eliminating the need for two-wheeler insurance renewal on an annual basis. Also Read: How to Renew Your Bike Insurance: A Step by Step Guide
What are the Advantages of 5 Years Insurance for Two-Wheeler Rule?
The 5 years insurance for two-wheeler rule brings various benefits:
- Continued Coverage: The third-party cover of 5 years assures continued coverage without the hassle of annual bike insurance renewals . This saves time and eliminates the likelihood of faltering renewals.
- Cost Effective: Purchasing a 5-year insurance coverage over an annual cover is budget-friendly and saves costs on renewals.
- Compliance : The 5 years insurance for two-wheeler rule guarantees that bike owners follow the law and avoid fines for not carrying legal insurance.
- Financial Security: The 5 years insurance for two-wheeler rule secures you financially by covering third-party liabilities and it's a comprehensive coverage. In case of accidents, theft or natural wear and tear, your two-wheeler insurance will pay for all damage repairs.
- Peace of Mind: With 5 years of insurance for the two-wheeler rule, you can ride worry-free carrying legal insurance of 5 years and not worry about yearly renewals.
Purchase Simple, Easy and Affordable Bike Insurance Online with ABCL
The 5 years insurance for the two-wheeler rule is a significant step towards enhancing road safety and ensuring that all vehicles on Indian roads are appropriately covered. By requiring 5-year insurance coverage for new two-wheelers, the government has made it easier for bike owners to comply with the law and ensure financial protection in the event of an accident. Following the regulations of the 5 years insurance for two-wheeler rule, easily apply for bike insurance online with Aditya Birla Capital in a streamlined digital process. Check bike insurance types, add-ons and more to acquire the coverage suitable to your needs at minimal premiums. Navigate the roads in confidence with ABCL as your financial partner. Also Read: Two Wheeler Insurance: Meaning, Types & Coverage
FAQS - FREQUENTLY ASKED QUESTIONS
What are the types of two-wheeler insurance under the 5 year insurance for two-wheeler rule?
There are two types of two-wheeler insurance:
Third-Party (TP) Cover: It is a minimal legal requirement for all vehicles and covers third-party liabilities, including injury or damage caused to another person or property
Comprehensive Cover: It includes both third-party and own damage cover.
Can I get bike insurance online?
You can easily apply for bike insurance online with Aditya Birla Capital in a hassle-free digital process and get insurance with the desired add-ons.
Can I make bike insurance renewal online?
You can easily make bike insurance renewals through the insurance provider's website or app.
Do existing bike owners have to convert to a 5-year policy following the 5 year insurance for the two-wheeler rule?
The restriction is only applicable to new two-wheelers bought September 1, 2018 onwards.
Can I terminate my five-year insurance policy under the 5 years insurance for two-wheeler rule?
Yes, however, you may incur cancellation charges and receive a refund based on the remaining coverage time.
What happens if I do not have a proper two-wheeler insurance policy?
Riding without insurance is prohibited under 5 years of insurance for the two-wheeler rule and may result in penalties, fines, or legal action.
How do I apply for a policy following the 5 years insurance for two-wheeler rule?
You can apply for a 5-year policy through your insurance provider or online on their official website.
Can I transfer my policy if I sell my bike under the 5 years insurance for two-wheeler rule?
The policy can be transferred to the new owner upon the sale of the bike.
What are some things to consider when applying for 2-wheeler insurance?
-Type of Insurance: Third-party or comprehensive
-Coverage: What all is covered (accessories, personal accidents) and exclusions
-Claim Settlement Ratio: A higher ratio indicates a better track record
-Insurer: Make sure the provider has a legal licence and a good history
What happens if I drive without a 5-year insurance policy for a bike I bought in 2019?
The 5 years insurance for two-wheeler rule, is mandatory and driving without one is a punishable offence.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
