Even though having a bike insurance policy is mandatory as per the law, there are several myths surrounding them. These misconceptions often create confusion, and individuals often make the wrong decision while purchasing a two-wheeler insurance plan.
Hence, here are some top myths about these policies that one should know about –
- A third-party insurance policy is enough
Even though it is mandatory to have this policy, the coverage it offers is not enough. The reason being, it only offers financial coverage for damages to a third-party vehicle, property or person. It does not include coverage for own damage.
- Old bike needs no insurance
As a matter of fact, it does. Irrespective of the condition of a motorcycle, without a proper insurance policy, it is not legal to ride it on the Indian roads. Owners can land into legal trouble if they violate this rule.
- Commercial usage does not need new insurance
Another popular myth about these motor insurance policies is that one can use their vehicle for commercial purpose without new insurance. However, the reality is quite the contrary. Since the commercial vehicle has a different registration system, they also need a specific insurance policy to comply with India’s Motor Vehicles Act.
- Will lose on no-claim bonus while changing insurance provider
No, individuals do not lose on their no-claim bonus if they shift to a new insurance provider. However, they must talk to their new insurance company and understand their process and other terms to ensure this benefit.
- Insurance policies are for all the damages
No, that is not the case at all. Insurance companies have specific guidelines regarding the scenarios and incidents where they will not extend any coverage. For instance, if an individual meets with an accident while being intoxicated, the ensuing damages will not be covered by bike insurance policies.
These are some of the most common myths about two-wheeler insurance policies. Nonetheless, it is advisable that one should go through the fine print of a policy before purchasing it.
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