According to the Motor Vehicles Act of 1988, third-party bike insurance is mandatory in India. As Diwali approaches, most Indian homes undergo a makeover. The festivities extendcelebrations go beyond new clothes, jewellery, mouth-watering delicacies, and firecrackers. While some people use the holidays to explore new destinations, others wait for this festive season to bring home brand-new vehicles. Wondering why the festive season is the ideal time to buy a four-wheeler or two-wheeler? Read on to discover why many wait for Diwali to make their vehicle purchase.
Is Diwali the ideal time to buy a two-wheeler?
In India, Diwali is considered the perfect time to purchase a two-wheeler, and here are the reasons why –
- Auspicious time: Diwali, in hindu culture, is considered an auspicious time to make big purchases, as people believe that buying during this time brings good luck and prosperity. On Dhanteras, the first day of Diwali, people purchase assets like homes, vehicles, or gold, which is said to bring good luck.
- New model launches: Knowing the buying sentiments of people during Diwali, many companies roll out new motorbike models, giving customers more options. The manufacturers launch new models with the latest technology or upgrade the best-selling models with the latest features.
- Festive discounts: Discounts are in abundance during this season. To attract more buyers, automobile manufacturers offer lucrative discounts, offers, and cashback, such as free accessories, gift vouchers, pre-launch offers, complementary two-wheeler insurance, etc.
- Attractive loans: During the festive season, banks and financial institutions offer attractive deals on bike loans, such as reduced interest rates, waiver of loan processing fee, easy EMI options, flexibility in repayment options, zero down payment, and quick approval of loan disbursement.
- Year-end sale: To clear the stock of the current year, automobile dealers offer huge discounts during Diwali as the year approaches its end. If you are not very particular about the year of manufacture, you can grab some good deals for purchasing a bike during this time.
- Bonus: Diwali is also when most working professionals get a bonus. This means the buying power is much higher during this time than the rest of the year.
- Exchange offers: If you have been mulling over exchanging your old bike because it is over 10 years old then this is the best time to do it. Many dealers come up with lucrative exchange offers, and you can get a good deal by exchanging your old bike for a new one.
Choosing the right bike insurance
The next and most essential step after purchasing a two-wheeler is to buy a bike insurance policy. Primarily, there are two types of bike insurance - third-party insurance or comprehensive bike insurance. Third-party liability insurance, which is mandatory and the most basic two-wheeler insurance, protects the policyholder against third-party liabilities such as damage caused to a person or his/her property. It does not, however, cover loss to the policyholder's vehicle.
Comprehensive bike insurance, on the other hand, covers both third-party liabilities as well as damage caused to the policyholder's bike in case of an accident, fire, theft, and natural or man-made calamities. It, thus, provides all-round protection to your bike. One can further enhance the coverage with essential add-ons like zero depreciation cover, roadside assistance, engine protection cover, etc. Based on affordability and bike usage, one can choose either policy, though comprehensive bike insurance is most recommended.
Is bike insurance mandatory in India?
According to the Motor Vehicles Act of 1988, third-party bike insurance is mandatory in India. Riding on Indian roads without a valid insurance policy is a punishable offence, which can lead to a fine and/or imprisonment of up to 3 months. Although third-party cover is mandatory, it is advisable to buy comprehensive bike insurance to safeguard yourself and your vehicle against any damage or loss due to unforeseen events, such as accidents, floods, earthquakes, riots, vandalism, fire, or theft. If you have bought only third-party insurance, you have to bear the repair costs of your bike which can result in a financial burden.
Comprehensive bike insurance may cost more than basic coverage, but it's a worthwhile investment. For bikes purchased after September 2018, a 5-year third-party insurance cover is mandatory, while a 3-year policy is required for comprehensive coverage.
If buying a bike isn't an urgent need, it's wise to wait until Diwali. This festive season is the ideal time for major purchases, as highlighted above. And once you've brought home your new motorbike, be sure to secure it with a comprehensive bike insurance policy for complete peace of mind. Some dealers provide complementary bike insurance with your new bike, so check out all the deals and offers before buying a two-wheeler.
Disclaimer: The above content is non-editorial, and TIL hereby disclaims any and all warranties, expressed or implied, relating to it, and does not guarantee, vouch for or necessarily endorse any of the content.
