Everything About Bike Insurance Types, Benefits and Exclusions

Two-wheeler insurance provides coverage to bikes and scooters against any damage or loss incurred by them due to accidents, theft and natural disasters. Also, it is compulsory to own a third party bike insurance by every bike owner while driving in India, as per the Indian Motor Tariff. In addition to the compliance of regulation, it is also a prudent decision to purchase a bike insurance for securing your beloved two wheeler which you have bought with your hard money.

The two wheeler insurance is crucial to get financial protection against the damages that may occur due to an accident or a mishap. Nowadays, many insurance companies offer different insurance covers to suit the diverse needs of customers. There are different types of insurance plans that you can choose your coverage from.

Types of Two Wheeler Insurance Policy

There are three types of bike insurance plans available in the market, details of which are as follow:

1. Third Party Insurance Policy

The third party insurance policy is the basic two wheeler insurance cover that is mandatory to be owned by every bike rider while driving scooter or bike. It offers compensation for your financial liabilities, which you may incur towards a third party for bodily injury, death or property damage, sustained due to an accident or a mishap with the involvement of your vehicle. The compensation amount of property damage is limited to Rs. 1 lakh. To drive a two-wheeler without this cover is illegal and can get you penalised with Rs. 2,000 and/or imprisonment of up to 3 months.

Benefits

• Third Party Property Damage - The third party insurance plan covers the expenses of third party property damage caused by the insured’s two-wheeler.
• Third Party Bodily Injury or Death - The third party insurance policy provides compensation to third parties for bodily injuries or death which is decided by a court.

Exclusions

• No coverage for the expenses of damage of insured’s two-wheeler
• Bodily injuries or death of owner or driver will not be compensated

2. Standalone own-damage Insurance Policy

This standalone own-damage bike insurance policy cover is designed to compensate the damage expenses of the insured person, which may arise due to any loss or damage incurred by the scooter or bike of the insured in an accident or a mishap such as fire, theft, natural calamity, and so on. The coverage of this bike insurance plan can be extended with the inclusion of add-on covers by paying an additional premium amount.

Benefits

• Coverage for Own-Damage - The standalone own-damage insurance cover offers the coverage for own-damages or losses incurred by the insured person’s bike or scooter due to accident, theft, fire, natural calamity, etc.
• Add-On Covers and Discounts – With standalone own-damage two-wheeler insurance policy, several add-on covers are available which you can easily opt for by paying a little extra amount of premium based on your requirement and needs. In addition to this, own-damage insurance cover allows you to earn No Claim Bonus (NCB) and different other discounts which can reduce the premium of the policy.
• Option of Different Insurers - With standalone own-damage insurance cover, policyholders can now choose a third party insurance plan and an own-damage insurance plan from different insurers based on their suitability and choice.
• No Compulsion for Long Term Plans - The standalone own-damage cover allows policyholders to hold a third party insurance plan of 5 years and a standalone own-damage plan of 1 year that they can renew every year.

Exclusions

• No coverage for the damage or loss incurred by the two-wheeler of third party
• Bodily injuries or death sustained by the third party will not be compensated

3. Comprehensive Insurance Policy

This comprehensive bike insurance policy offers a complete insurance coverage under which it covers you against the financial expenses subject to third party liabilities and own-damage expenses. This cover gives a holistic insurance coverage for damages or losses sustained in an accident or an unfortunate incident. The policyholders can include various add-on covers like roadside assistance, zero depreciation cover, etc., by paying additional premium. They can also avail No Claim Bonus (NCB) and other discounts with this insurance cover.

Benefits

• Coverage for a Third Party - The comprehensive two-wheeler insurance plan covers the expenses of third party’s bodily injury, death and property damage caused by the insured’s two-wheeler.
• Coverage for Own-Damage or Loss - The comprehensive two-wheeler insurance cover gives compensation for expenses incurred due to own-damages or losses incurred by the insured person’s bike or scooter due to accident, theft, fire, natural calamity, riots, terror activity and so on.
• Avail Add-On Covers and Discounts - There are various add-on covers available with the comprehensive insurance plan. You can get it by paying a little extra amount of premium as per your need. Also, comprehensive policy allows you to avail no claim bonus and other discount on its premium.

Exclusions

• No coverage will be given if the policy is lapsed
• Mechanical wear and tear from aging of the vehicle
• If the insured is driving two-wheeler without a valid license
• If the driver is under the influence of alcohol, drugs, etc., during accident
• If the vehicle is driven out of the geographical limit specified in the policy

Why Is It Essential to Own a Bike Insurance Policy?

With a bike insurance policy, you get legal protection as owning at least a third party two-wheeler insurance is compulsory in India, according to the Indian Motor Tariff. When it comes to purchasing a bike insurance policy, you should opt it for various benefits such as to secure your two-wheeler vehicle against the damages or losses, as well as injuries or death which could be sustained by the bike rider. 

A bike insurance policy reduces your financial stress as your vehicle is protected against all risks under the policy which ensure that if it gets damaged or stolen, the insurance company will cover your financial liability by providing you compensation for the damages of the insured bike and medical treatment cost for injuries suffered by the third party. 

A personal accident cover is also a compulsion and being offered as an optional cover with insurance plans, so if you hold that too, then your injuries and death will also be compensated equals to your sum insured amount, which is given to the nominee, in case of your death. Hence, if you meet with an accident or a mishap due to which your two-wheeler gets damaged, then a bike insurance saves you from facing legal as well as financial trouble.

Conclusion

The two wheeler insurance is of different types and every type has some advantages and exclusions in it. With the above-mentioned details of different insurance covers, you can make better decisions in the selection of an insurance plan for your bike or scooter.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.