Two-wheelers are preferred for commuting to work or school since they also have the benefits of easy maneuverability and easy parking. Riding a two-wheeler frees one from several restrictions. These are helpful in India’s congested conditions.
Being a responsible driver is a must for bike ownership. Along with observing traffic signs and rules and acting courteously toward other drivers, it’s essential to have the appropriate paperwork, including a valid type of driving license and bike insurance. In addition to the legal need, you should always be aware of your insurance status as you ride your bike down the road.
What are the types of two-wheeler insurance, and what is covered inside? Basically, India has three primary bike insurance plans: bike, two-wheeler, and damage cover.
What is Bike Insurance?
When you ride a motorcycle on a public road, you risk other people and yourself for mishaps, collisions, etc. These occurrences could be the result of carelessness or lack of experience. In either scenario, the bike may sustain full or partial damage, while the other drivers may sustain injuries or even pass away. You must follow motorcycle safety tips while riding on city streets. Bike insurance is a need to protect against such tragic occurrences.
The policy is a legal agreement between the insurance company and the policyholder. The former commits to providing insurance protection for regular and prompt premium payments from the latter. The policy is a legal agreement between the insurance company and the policyholder. The former commits to providing insurance protection for regular and prompt premium payments from the latter.
What Are Two-Wheeler Insurance Options There In India?
In India, there are three main categories of bike insurance plans.
- Third-Party Liability-Only Bike Insurance
- Standalone Own Damage (OD) Bike Insurance
- Comprehensive Bike Insurance
1. Third-Party Liability-Only Bike Insurance
Third-party bike insurance is the common name for this type of insurance plan for bikes. According to India’s Motor Vehicles Act, what must insure a motorcycle to cover any liabilities that may result from losses or damages incurred by third parties due to collisions caused by the insured bike? Suppose the guaranteed motorcycle causes an accident within the terms of this policy. In that case, any injuries to or fatalities of third parties, as well as damage to their vehicles, will be covered.
As you can see, third-party liability coverage does not cover loss or damage to the insured bike. The covered bike may receive some damage in an accident, and the insured bike’s rider may also sustain injuries.
2. Standalone Own Damage Cover
An Independent Own Damage Bike insurance policy that covers the damages to the insured two-wheeler is known as a two-wheeler insurance policy. It covers theft of the bike, the total damage to the bike, and damages brought on by natural and human-made disasters (damaged beyond any repairs). But third-party liabilities are not covered by this policy. Therefore, what can only purchase this policy with the legally required third-party liability coverage?
3. Comprehensive Two-wheeler Insurance
As the name implies, this policy provides comprehensive 360-degree protection for you and your bike against any third-party liability. Comprehensive bike insurance is a sort of two-wheeler insurance that provides the owner-driver with personal accident coverage as well as coverage for any legal and financial third-party obligations as well as own-damage coverage for the covered bike. Zero Depreciation Cover, Roadside Assistance Cover, and other add-ons are popular choices.
Third-Party vs. Standalone vs. Comprehensive Insurance
| Third-party liability | Standalone own damage | Comprehensive coverage |
| Covers the loss incurred by third parties as a result of an accident the insured bike caused | It is also known as first-party coverage and provides the bike’s owner-driver with personal accident coverage. | Protects against damage to the covered bike as well as to third parties. |
| According to the Indian Motor Vehicles Act, is required for the ride. | Optional | An Optional |
| The Indian Motor Vehicles Act states that it is necessary for riding. | The insurer’s set premium prices | IRDAI-specified rates and insurer-specified rates make up premium rates. |
| IDV of the vehicle is not a factor in calculating the sum insured. | The vehicle’s IDV is a crucial factor in calculating the total insured. | The vehicle’s IDV is an important factor in determining the own damage coverage portion of the policy. |
| Standard premium rates | The slightly higher premium cost | Optimal cost for the coverage assured |
| Add-ons not available | Add-ons not available | Add-ons are not available |
| The Motor Accident Tribunal decides the amount payable under the claim | Based on the surveyor’s findings, the insurer determines the final amount payable under the claim. | The insurer determines the ultimate amount payable under the claim based on the surveyor’s report for the damage claim. The Tribunal’s final award provides for the payment of third parties. |
| Theft, riots, and natural disasters are not covered if they cause damage to the insured bike. | Theft, natural disasters, and riot-related damage to the insured bike are all covered. | Damage to the insured bike resulting from riots, natural disasters, and theft is covered. |
If you are concerned about your bike insurance premiums and want to reduce your two-wheeler insurance premium, click here to know more.
