The Law And The Motorbike Insurance Policy
It is virtually impossible for you to not have noticed that almost everyone around you keeps their cars and motorbikes insured. Although you may or may not have done further research into this subject, you would still have found out that people do this because the law in the country makes it mandatory for people to insure their vehicles, regardless of whether it is a two wheeler or a four wheeler. However, even though you probably do it yourself, you still may not be aware of the exact details of the law that makes it mandatory for UK citizens to insure their motorcycles.
The law which is behind this trend is known as the Road Traffic Act which was put in place by the UK government in the year of 1988 and subsequently amended later. The law states that the act of driving a vehicle (this includes two wheelers and four vehicles) on UK roads without an appropriate insurance policy is a punishable act. There are primarily three types of punishments that the law enforcement officer can impose on you. The following are the three.
1. A substantial fine of up to 5,000 pounds can be put on you the moment you are caught defying the law.
2. Alternatively, you could also receive around six to eight penalty points on your driving record which can cause a lot of difficulty later.
3. Thirdly, if you are found to defy the law repeatedly, you can even have your licence disqualified which, basically, means that you would not be able to drive on UK roads.
The term appropriate mentioned above refers to, basically, third party liability. Third party liability means that if you end up injuring someone or damaging his property by way of your bike, you would be held responsible for it in terms of finances. As a result of this minimal requirement of the law, every policy that is designed for the UK market would contain this clause.
Even so, the law is not the only thing that makes UK citizens insure their motorcycles. The motorbike insurance policy, without the law also, would receive the same kind of attention it does now because of the multiple benefits that it offers to policy holders. Insurance is seen as one of the perfect ways of investing your money. The reason for this is that it prevents the financial ramifications of an untoward incident.
For example, a good motorcycle insurance policy would protect you against the financial fallout of your bike getting damaged through some natural or man-made accident. It is precisely because of this property that most financial analysts and strategists, world over, focus their strategies and plans for individual clients around insurance policies of different types. Furthermore, the aforementioned third party liability protection is something that can go a long way in negating the adverse consequences of plain bad luck or minor mistakes in life.
Hence, as you can see, motorbike insurance policies are not only necessary for you because you cannot defy the law but also because they can equip you with multiple benefits.