You must follow certain bike insurance rules and regulations when riding a two-wheeler on the road. Buying two-wheeler insurance is one of them. The Insurance Regulatory and Development Authority of India has also produced a set of standards for two-wheeler insurance products (IRDAI). The IRDAI’s requirements must follow by both bike insurance companies and policyholders. The IRDAI recommendations for two-wheeler insurance contracts include a wide variety of subjects, including how to use bike insurance, its policies, terms and conditions, coverage length, and inclusions and exclusions.
3 Major Bike Insurance Rules That was Created by IRDAI
Depending on the kind of coverage, the IRDAI guidelines differ. So, the following rules contain in several types of insurance coverage:
Third-Party Two-Wheeler Insurance Requirements
The third-party insurance coverage covers the expense of any property damage or injury to a third party caused by the policyholder’s two-wheeler. The IRDAI rules for third-party insurance are as follows:
- In case of the insured two-wheeler causes property damage or death to a third party, the policyholder’s insurance company must reimburse the third party financially, taking into consideration the severity of the harm suffered by the third party.
- additionally in a certain amount, the insurer is liable for the cost of repairing damage to a third party’s property caused by the insured’s vehicle.
Guidelines for a Comprehensive Two-Wheeler Insurance Policy
The insurance firm must follow all of the third-party policy’s criteria under a comprehensive insurance policy. Furthermore, the policy must adhere to the following guidelines:
- Natural or man-made disasters should cause any damage to the insured’s two-wheeler to be repair or replace at the insurer’s expenses.
- The cost of the policyholder’s add-on coverage must cover by the insurance company.
- In the case the insured’s two-wheeler will theft or totaled, likewise the insurance company should pay the policyholder.
IRDAI’s New Two-Wheeler Insurance Rules
Some of the new IRDAI rules for two-wheeler insurance are as follows:
- A challan of Rs. 500 for the first infraction and Rs. 1500 for consecutive crimes will Levi if the punishment for a bike rider’s offense is not clearly mentioned in the new regulations.
- If you break the traffic laws, you will give fine between Rs. 500 and Rs. 1000.
- A rider who refuses to cooperate with the authorities may be fine an additional Rs. 2000.
- On the other hand if the rider does not have a valid driver’s license, he or she would be fine of Rs. 5000.
- A rider will give fine Rs. 10,000 if they are disqualified.
- For violating the speed limit, a fine of Rs. 1000 will be applying.
- Similarly, in dangerous driving, the rider gives a fine of Rs. 1000 and sentenced to 6 months in jail.
As a two-wheeler owner, you should be aware of these IRDAI standards in order to take advantage of insurance benefits. It’s possible that future restrictions or penalties will be altered. As a result, stay current by keeping an eye on the rules. The Insurance Regulatory and Development Authority of India (IRDAI) is an Indian government organization responsible for overseeing and developing the insurance business.
It is a self-governing body that regulates all areas of the Indian insurance market. The IRDAI mandates that all insurance companies in the United States follow its guidelines. The IRDAI has very strict rules for two-wheeler insurance and other types of insurance plans in the country, which must be followed by both insurance companies and policyholders. If you want to know more other Insurance like car insurance, then click “car insurance benefits” text.