India’s Two Wheeler Industry Set to Record Fastest Growth in Five Years

The wheels are on the fast track when it comes to two wheelers. Statistics show that sales for 2017 could be the highest in five years. The rate of growth ranges between 3% and 8% from 2012 to the current year. Around 255900 scooters and 10073000 motorcycles were sold in 2012. In 2015 scooter sales touched 4500900 and motorcycle sales were slightly higher at 10726000. In 2016 scooter sales registered a significant increase from 4500900 to 5031670 whereas motorcycle sales remained almost stagnant.

Why increase?

According to market pundits people have not bought as many new two wheelers as expected and 2017 seems to be the right time for them to twist the accelerator because of improved economy. Salary hikes for government staff is also expected to be a contributory factor. If scooter sales have climbed significantly in 2016 it is due to better availability, more women taking to two wheelers for commuting and even men switching over to scooters. Sales will zoom despite the higher perceived risk of driving two wheelers on chaotic Indian roads. Majority of owners are without any form of two wheeler insurance, not even the mandatory third party liability insurance.

Accidents

Statistics show that one accident occurs every minute and two wheelers are involved in 25% of the accidents. 377 people die each day in accidents. In Delhi alone 5 people die each day in accidents. Lack of traffic sense, no discipline, drunken driving and other factors as well as congestion are causes of accidents. Even if you drive most carefully you may still be involved in an accident due to rash and negligent driving of the other person. A few years back the government relaxed laws allowing even school going children to drive two wheelers and the way they drive rashly is to be seen to be believed. 41% of 57844 deaths in 2014 wee due to speeding and rash driving. Driving under influence is another major reason. If you are involved in an accident and do not have two wheeler insurance you are in a grave situation.

Risks of driving two wheelers without insurance

Even if you are not at fault, it is probable the other driver will claim damages from you if you are involved in an accident. If you do not have third party two wheeler insurance you could end up paying a substantial amount and you may even face prosecution and jail term. If you drive without third party insurance you have to pay fines for violation. If you do not have comprehensive cover, you will pay for repairs to your two wheeler and your medical treatment. In case of theft, and cases of theft of brand new two wheelers are on the rise, you lose the bike and the money you paid for it.

Insurance is more necessary than ever

Read the forecast for increase sales of two wheelers in the coming years along with rising accident rate and you know why it is absolutely necessary to have two wheeler insurance. Two wheeler insurance in India is not that popular since a survey shows that majority does not ever renew their insurance and drive without TP insurance cover. Laws are becoming stricter and it is in your interest to have both third party (TP) and comprehensive cover. You may be driving safely but the other person is not and both insurance covers keep you protected in the event of an accident.

This article is written by Moupee Deb Roy. She is a content enthusiast and is determined to encourage people to be informed, compare and buy two wheeler insurance.