Planning To Buy A Motor Bike? Must Know These 2019 Insurance Rules
Every year new bike insurance rules are either being introduced or modified for the betterment of customer satisfaction as well as for making the road safe. Among sever rules introduced in the year 2019, the Third-Party Insurance still remains mandatory and unchanged. However, there are certain aspects which have been subject to modifications and are yet to come to effect since the 1st of September 2019. Among the major changes, the relaxation of choosing an Own Damage policy stands out the most. However, there are more such new bike insurance rules which every two-wheeler owner should be aware of.
As per the new rules of two-wheeler insurance, effective since the 1st of September, 2019, policyholders shall be able to avail yearly renewal of Own Damage coverage but it is mandatory for them to take a policy for 5 years in one go. The new policy issued is mandated for five years, which comes bundled with Own Damage cover for first year.
*Note that Bundled Policy is available for new two-wheelers only.
Buy Own Damage Coverage From A Separate Insurer
After the issuance of the fresh two- wheeler insurance rules, bike owners have been granted the relaxation for renewing the Own Damage component from a separate insurance company and not mandatorily from the company where they have got the Third-Party insurance coverage from. However, for buying the Own Damage component separately or from separate insurance companies, one must provide the necessary Third-Party policy details, when asked
Upfront Payment For Third Party For 5 years
Under the new two-wheeler insurance rules set by the IRDAI, buying the Third-Party cover for a newly purchased bike, effective from 1st Sept 2019, for a period of 5 years has been made mandatory. According to this, the policyholder should have to pay the Third-Party premium for 5 years upfront in the beginning and he/she will not have to make any other payment henceforth till the expiration of the TP component. Though this was issued on September 2018, the policy has been kept the same in 2019, along with the relaxation on the OD component.
Independent Personal Accident Policy Allowed
Under the two-wheeler insurance new rules, the bike owner already having a Personal Accident Policy of a minimum of 15,00,000 INR, shall not have to buy the same while availing bike insurance. This very CPA bought earlier shall be held valid even if the policyholder buys it from a different insurance company. Thus, the policyholder does not need to buy the same CPA twice unnecessarily.
The new bike insurance rules have been introduced for the betterment of the policy holders. However, the rules regarding the Third-Party coverage remains unchanged. It takes the monetary responsibility for providing damage coverage for a third-party individual in case of any accident resulting from the policyholder’s fault.