What are the Different Types of Bike Insurance Coverage in India?
Buying a new vehicle is a moment of celebration and joy. In India, with heavy traffic and narrow roads, two-wheelers have been the preferred mode of transport for most people. However, as compared to a four-wheeler, a two-wheeler needs to be balanced and hence, is more prone to accidents. Further, two-wheelers are also prone to thefts since they are easier to haul away as compared to cars.
Hence, it is important to ensure that you buy the best bike insurance for your two-wheeler to financially protect yourself from any potential damages or losses due to an accident, mishap, theft, natural or man-made disaster.
Today, we are going to talk about the different types of 2-wheeler insurance policies in India to help you make an informed decision before you buy bike insurance online.
Under the Motor Vehicles Act 1988, the Government of India made it mandatory for all motor vehicles, including two-wheelers, to have at least third-party insurance policy. This policy offers financial protection from damages or losses to third-party property or person(s) due to an accident or a mishap.
Being a mandatory requirement, if you don’t have a third-party policy, you can face the following challenges:
- A fine and/or imprisonment of up to three months
- Losing the No Claim Bonus discount on the premium rate on renewing the policy
- Increased legal liability
Own Damage Insurance Cover
The own-damage cover helps the policyholder in protecting his vehicle against damage due to fire, theft, road accidents like collisions etc. While the IRDAI had mandated a third-party insurance cover for all vehicles, damages to own vehicle had to be borne by the policyholder themselves. However, with the launch of own-damage insurance policies, the vehicle owner can ensure a more comprehensive cover for his two-wheeler.
Even if you have purchased a third-party liability cover from one insurer, you can purchase an own-liability cover from another. Most insurance companies offer policies online. All you need to do is visit the insurer’s website, enter the required details, pay the premium, and receive the policy at your registered email address.
With own-damage cover, you are financially protected from damages and losses to a third-party person or property and own vehicle or injury to self, caused due to an accident, collision, theft, natural disasters like earthquakes, cyclones, floods, etc., and man-made disasters like riots, terrorist activities, etc.
Here are some exclusions of an own-damage policy:
- Accidents caused by drunk driving – The Indian law mandates that drinking under the influence of alcohol is punishable. Hence, if a bike gets into an accident, and it is established that the rider was drunk, the insurance company does not honour the claim request.
- Driving without a license – Law also mandates that you must have a valid driving license if you are driving your bike on public roads. Illegally using the two-wheeler at the time of the accident, will not be considered for an insurance claim.
- Sheer Negligence – Simply put, if the owner takes the bike at the time of an already existing flood situation, or any such time when it is not advisable to take the vehicle out, the claim can get rejected.
Comprehensive Insurance Cover
This cover is the combination of both Third-Party Cover and Own Damages Cover. This will protect the bike owner against damage caused by fire, theft, terrorism, riot, floods. This will also take care of the amount payable to the third-party at the time of the accident.
Comprehensive cover will offer protection to the rider if he/she suffers any form of disability post an accident. The medical expenses in such cases are usually high, and this cover will surely bring some relief to the policyholder.
Any damage caused to the vehicle during an accident will be covered under this policy. If the damage is beyond repair, then the insurance claim will be for the Insured Declared Value (IDV) of the vehicle. IDV is the maximum amount that the insurance company will pay for the total loss of the insured bike.
Insurance policies nowadays are easily available online. Before you purchase bike insurance, compare different insurers and plans. Once you have decided, log onto the website, feed in your bike registration details and choose what policy is best suited for your bike. There are many websites offering an insurance premium calculator for two-wheeler insurance that can help you get an estimate of the premium rate before you make a decision. This makes you less dependent on an agent since all necessary information is available at your fingertips.
A two-wheeler policy is an annual contract that should be renewed every year. In a technology-driven world, a policy is renewed with minutes, simple and hassle-free is the way to go!