Every year the lives of innumerable people across the world are cut short because of road accidents. Sadly India tops the list of countries where road accidents occur the most. One of the primary reasons for this is the increasing number of vehicle on Indian roads every year.
However, Insurance Information Bureau of India's data reveal that nearly 60 per cent of the vehicles plying on Indian roads are uninsured, most of them motorcycles and scooters. One of the biggest reasons being that most two wheelers do not get their insurance renewed after the first year.
Despite third-party motor insurance being compulsory by law, a fairly large number of these two-wheelers remain uninsured. This problem has two layers.
Either two-wheeler owners don't buy bike insurance for their automobiles in the first place.
If they do so, they don't take bike-insurance renewal seriously. They don't renew it on time, as a result the status of their insurance plan become inactive.
Insurance Information Bureau data shows that a whopping 57 per cent of vehicles are running without insurance on road. Of this, more than 60 per cent of two-wheelers run without insurance. Insurance Information Bureau report has further disclosed that about 52 per cent of the two-wheelers did not get its insurance renewed after the first year.
It is expected that Insurance Regulatory and Development Authority will insist on reducing vehicles without insurance from road after this report.
Regarding this issue, the States Department of Transportation and Insurance Regulatory and Development Authority are running a joint campaign.
It is said that PUC and fasttag required for insurance, will help in increasing the number of insured vehicles on road.
While buying insurance is considered a personal choice, the government has mandated every automobile owner to buy third-party insurance coverage. When we are on the roads, we are exposed to various kinds of risks. Road accidents can happen anytime, anywhere and with anybody.
Third-party two wheeler insurance provides insurance coverage for bodily injuries, death or property damages caused by one's automobile to the other.
According to motor vehicle act 1988, it is compulsory for all the automobiles plying on Indian roads, to have a valid third party insurance coverage. Defaulters will have to pay a fine of Rs 1,000 or face three months imprisonment or both.
- It pays for damages
- It reduces your liability
- It pays for your hospitalisation
- It costs less when purchased online
- It compensates your family after your demise