A two-wheeler insurance policy is an agreement between the insurance company and the policyholder where the former agrees to safeguard the bike and the owner by offering protection against financial liabilities that may arise during an accident. In India, as per law, all bike owner must have an insurance cover. Driving with a valid license is a punishable offence, and it can attract a hefty fine.
Apart from being a legal requirement, if you are a bike owner, having an insurance cover helps you cover the expenses against unforeseen circumstances like theft, accidents and natural disasters like rain, snowstorm, earthquake, etc. Generally, the insurance companies in India offer bike insurance for one year. On maturity of the policy, you can renew the policy with the insurance company, or you can switch to a different insurer.
Types of Bike Insurance in India
Third Party Insurance Policy
Third party bike insurance, which is also commonly referred to as ‘Act Only’ policy is a basic insurance cover that offers protection against death, bodily injuries, and property damages to a third-party in the event of an accident. Under the Motor Vehicles Act, all bike owners must have this insurance cover.
The premium for third-party bike insurance is much lower than a comprehensive policy. Buying a third-party insurance policy is a simple process and requires minimal documentation. Today, many insurance companies offer third party liability cover online. You can easily compare the policies of different insurance companies and choose the one that offers a policy at an affordable premium.
One of the significant features of third-party bike insurance is that you cannot file a claim, but the third party who suffers damages or injuries will file a claim from your insurance company for the loss. Also, the third-party two-wheeler insurance does not cover the damages or bodily injuries to the policyholder. You must purchase a comprehensive policy for the same.
Comprehensive Policy
Comprehensive insurance is a type of two-wheeler insurance, which is also known as ‘Package Policy,’. It covers everything that is included in the third-party insurance policy along with additional cover for theft and damages of your two-wheeler and death or bodily injuries. Unlike third party insurance, a comprehensive insurance policy is optional.
While a comprehensive policy’s coverage entails everything, it does not cover the damages caused due to mechanical or electrical breakdown of the part. Also, the policy does not cover the damages if you are caught driving under the influence of alcohol, drugs or any other intoxicating substance.
A significant benefit of buying a comprehensive bike insurance policy is that it allows you to widen the scope of the coverage by opting for riders or add-on covers. There are many add-ons that you can choose to suit your specific needs. Some of the popular riders include:
- Zero depreciation cover
- Roadside assistance cover
- Pillion rider cover
- Daily cash allowance
- Accessories cover
- No Claim Bonus Cover
Although the add-on covers come at an additional cost and increase your overall premium amount, the additional coverage you get with these add-ons will help you save a significant amount if you meet with any road mishap. A lot of people feel confused about whether to buy third-party insurance or a comprehensive policy. It would be best if you made the decision based on your needs. If you cannot afford to pay a high premium, a third party liability cover will best suit your need. Also, it will help you fulfil your legal obligation. But, if you want to get more extensive financial coverage, a comprehensive policy is your best bet.
