As per the Motor Vehicle Act, every bike owner must have a third party bike insurance policy. Failing to adhere to this regulation may result in hefty fines, and you may also end up behind bars.
When purchasing bike insurance, the most common doubt faced by a majority of people is whether to purchase a long-term or a short-term bike insurance policy.
To put an end to this doubt, IRDAI (Insurance and Development Authority of India) has made it compulsory to have a bike insurance policy for five years in case of third-party bike insurance plans.
Moreover, investing in a long-term insurance plan has some amazing perks. If you want to know what those are, keep reading!
Is Two-Wheeler Insurance 5 Years Mandatory?
As a result of the Supreme Court’s decision in 2019, IRDAI has made two-wheeler insurance mandatory for 5 years for new bike owners. This has been implemented to ensure that a large number of vehicles are insured while also lowering the chances of lapsed policies, which fail to cover the bike owner/rider when needed.
So, yes, two-wheeler insurance for 5 years is mandatory if you have recently purchased a bike. But this is only true for third-party bike insurance. In case you buy a comprehensive insurance policy, then the tenure should be a minimum of three years.
While a third-party bike insurance policy provides coverage against third-party damages due to your bike, a comprehensive bike insurance policy protects against third-party as well as own damages to your two-wheeler.
Benefits of Long-Term Mandatory Two-Wheeler Insurance
A long-term insurance scheme can provide you with several benefits. Some of them are as follows:
- Regulatory Compliance: First and foremost, opting for a 5-year insurance policy will help you adhere to the legal requirements of IRDAI.
- Continuous Coverage: With a long-term bike insurance plan, you can enjoy continuous protection without worrying about renewing the policy every year. It not only saves you from being caught with an expired policy but also from the hefty insurance renewal charges.
- Cost Savings: Leading two-wheeler insurance providers in India, like Tata AIG, offer excellent deals and discounts on their long-term policies. It means you can save a good amount of money by choosing a five-year bike insurance plan.
- No Worries About Price Hikes: The insurance market is very volatile when it comes to the cost of insurance schemes. In simple words, price hikes are very common in the insurance industry. But you do not have to worry about all of this when you have a long-term plan.
- Vehicle Transfer Benefits: Another benefit of purchasing two-wheeler insurance for five years is that you can easily transfer an existing insurance plan for your newly purchased bike. Most insurers offer an insurance transfer facility for their long-term policyholders.
Is Bike Insurance Mandatory for Old Bikes?
Insuring an old bike is as important as having insurance for a new one. Not only is it mandatory, but it also offers the required financial support in case of an unforeseen event.
Let’s face it; older two-wheelers are more prone to accidents due to their deteriorated conditions. So, to save yourself from the expensive repairs and replacement and legal actions, it is advisable to have an insurance plan even for your older bike.
How Many Years Is Bike Insurance Valid For?
The majority of two-wheeler insurance policies in India last for a minimum of 1-2 years and go up to a tenure of five years. Note that an insurance scheme’s validity varies from insurer to insurer. Once the validity period is over, your policy becomes inactive, and thus, you need to renew it.
Although the expiry date of a policy is clearly mentioned, you can also check the same online using the available tools.
“Is bike insurance mandatory for five years?” — yes!
As mentioned above, a third-party bike insurance policy with a five-year validity is compulsory for every bike owner in India. Additionally, as you can see, there are some great advantages to choosing a long-term plan. It offers great cost savings and continuous coverage against any unprecedented event you might encounter.
Further, it also saves you from the hassle of remembering the expiry date of your plan and renewing it before the given deadline. For these reasons, you should not hesitate to invest in a five-year bike insurance scheme.