The two-wheeler market in India is set for a tough competition with the top bike makers launching new models. With the push for premium two-wheeler sales in the country come multiple options for bike enthusiasts. However, there are various things one needs to keep in mind while purchasing a two-wheeler, one of which, is insurance. If you are planning to bring home your favourite bike which you have been researching on for months, here’s all you need to know about two-wheeler insurance:
Why bike insurance?
Owning a bike comes with its own risks such as accidents, collisions, damages due to natural disasters, etc. These events can lead to serious injuries or even loss of life besides making a dent in the pocket. Hence, bike insurance is a mandatory requirement to safeguard us against such unfortunate events.
Some of the advantages of bike insurance:
Less financial stress
A two-wheeler is an asset that you would want to protect against risks. Any damage to the vehicle can be troublesome as it is equivalent to financial stress. Having a decent insurance can have you covered against financial liabilities due to risks involved in owning a bike.
One may face heavy fines if found without a valid insurance in case of any violation of traffic rules or otherwise. Besides, in case of theft, loss or damage to vehicle, insurance prevents one from facing any legal or financial difficulties.
Personal accident cover
Besides paying for damages to your vehicle, insurance also covers you against any permanent disability caused due to accident. In an unfortunate event of death, the nominee is given the sum assured by the insurance company.
Types of two-wheeler insurance in India
Primarily, there are three types of bike insurance policies in India:
Third-Party Liability-Only Bike Insurance
Standalone Own Damage (OD) Bike Insurance
Comprehensive Bike Insurance
Third-Party Liability-Only Insurance
As per the Motor Vehicle Act, a two-wheeler must be insured against any liability that may occur because of any loss or damage done to third parties in an accident involving the vehicle. Under this insurance, any damage caused to a third-party is reimbursed.
However, this plan does not include loss or damage to the insured. This is where a standalone own damage policy or a comprehensive bike insurance policy comes into the picture.
Standalone Own Damage Insurance
This type covers the damages or loss caused to the insured two-wheeler. Under this policy, one gets coverage against natural and man-made disasters, theft of the bike, total damage (beyond any repairs), etc. However, it is to be bought along with third-party liability only insurance as it doesn’t cover any third-party liabilities.
As evident from the name, the policy provides a comprehensive coverage, which means it covers your bike as well as any third-party liabilities. This implies that the policy offers an own-damage cover for the vehicle, covers any third-party liabilities whether financial or legal and provides personal accident cover to the owner. One can also add to it targeted coverage against specific circumstances. Some of the unique and popular add-ons are Roadside Assistance Cover, Zero Depreciation Cover, among others.
Here we describe the common exclusions for health, life, motor and general insurance policies.
First Published: 14 Jul 2023, 08:39 AM IST