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Bike insurance, also known as two-wheeler insurance, is an agreement between the bike owner and the insurance provider, wherein the insurer commits to provide financial compensation for any damages incurred by the insured two-wheeler. It basically is a protection against unforeseen circumstances including thefts, collisions, or accidents. There are three types of bike insurance policies that you can choose from, third-party, comprehensive, and standalone own-damage bike insurance. A third-party bike insurance is a must-have according to the Motor Vehicles Act of 1988.
Two Wheeler Insurance Types
A comprehensive two-wheeler policy gives complete coverage by paying your financial liabilities that you may incur towards a third party and by providing compensation for expenses arising due to own-damages sustained by your bike. This policy shields your bike against damages it sustains due to an accident, fire, theft, man-made disasters, natural calamities, self-ignition, explosion, and so on. You can also enhance its coverage by paying an additional premium to purchase add-on covers like zero depreciation cover, roadside assistance cover, engine cover, etc.
In India, a third-party two-wheeler insurance plan is a compulsory requirement to ride a bike. It is also known as liability-only policy which covers bodily injuries, temporary or permanent disability, and death of the third party person due to an accident or a mishap with the involvement of the insured’s bike. This motorcycle or scooter insurance policy also covers the property damage expenses sustained by the third party up to Rs. 1 Lakh, but does not cover damages incurred by the insured’s bike or the insured person.
The standalone own-damage two-wheeler insurance policy gives coverage for the own-damages sustained by the insured bike due to an accident, theft, fire, natural disaster and man-made calamity. A standalone own-damage policy provides flexibility to policyholders for choosing an insurance company of their choice. The policyholders can buy a third-party policy and own-damage policy either from the same insurer or a different one. An insured individual can expand the coverage of a own-damage insurance policy by buying add-on covers.
How to Choose Two Wheeler Insurance Policy?
With so many insurance companies offering two-wheeler insurance plans, it often becomes difficult to choose the right one. In order to select the best two-wheeler insurance plan, you need to consider a number of things. Listed below are some of the factors you need to consider while buying bike insurance:
1. Know Your Coverage Requirements – Assess your requirements and budget so that you can choose between different types of two wheeler insurance plans that suit you the best. When assessing your requirements, you must consider different factors such as usage of your two wheeler, your expenditure, liabilities, etc.
2. Choose Add-ons Wisely – Add-on covers help you to enhance the coverage of your two wheeler insurance policy. You can opt for an add-on cover for your two wheeler insurance policy in exchange of extra premium. Common add-on covers in two wheeler insurance are zero depreciation cover, personal accident cover for pillion riders, and towing cover.
3. Choose a Reliable Insurance Company – Checking the claim settlement ratio is of utmost importance when choosing a trustworthy two wheeler insurance company online. It ensures that the claim settlement is hassle-free.
4. Compare Two Wheeler Insurance Plans Online – It is important to compare different two wheeler insurance policies online in order to make the best buying decision. You can compare different plans on the basis of inclusions, exclusions, premiums, etc.
5. Read Online Reviews – It is important that you read online reviews posted by different customers. This will help you in choosing the right two-wheeler insurance policy. You must read positive as well as negative comments online so that you can decide what is best for you.
Importance of two wheeler insurance/ Why do you need two wheeler insurance?
Having a two wheeler insurance policy can help you in different situations, thus ensuring that you don’t have to pay for any legal or financial liabilities out of your pocket. Apart from this, two wheeler insurance can be beneficial in the below ways.
Abide with the law
Buying third party insurance cover is mandatory as per the law. Every bike plying on Indian roads has to have a valid third party cover. Not buying this type of cover attracts a penalty up to Rs. 2,000 or even imprisonment in some cases. It is vital to buy or renew bike insurance on time to ensure you comply with the law.
Coverage against financial loss
Damages caused to your bike due to natural or man made calamities or any unforeseen accident can increase your financial burden. Thus, with comprehensive insurance cover you can stay protected against financial obligations.
Coverage against man made and natural disasters
In the event of a natural or man made disaster such as flood, cyclone, storm, fire, terrorism, etc. bike insurance can be of great help as it offers you coverage against damages caused due to such disasters.
Coverage for bike theft
In case your bike is stolen then an insurance policy will compensate you as per the policy terms and conditions. To claim for bike theft, obtaining a non traceable certificate from the police is mandatory.
Personal accident cover
Buying personal accident cover which protects the owner/driver against death, disability or bodily injury is mandatory. As per the law, it is compulsory for every bike owner to get personal accident cover up to Rs. 15 lakh.