How Many Types of Two-Wheeler Insurance Are There in India?
Published On May 29, 2021, Updated On Jul 28, 2021
If you have plans to buy two-wheeler insurance soon, check this post to learn about the different types of two-wheeler insurance available in India right away!
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In India, buying two-wheeler insurance is mandatory by law. In order to ensure that two-wheeler owners stay protected against damage due to an accident, two-wheeler insurance companies provide multiple reliable covers, catering to specific needs. It is important to note that every bike insurance cover is different from the other. So, if you are planning to buy bike or two-wheeler insurance anytime soon, keep in mind that your coverage will depend on the type of plan you choose.
By purchasing two-wheeler insurance, you will not only gain legal protection but also avoid financial stress that could suffocate you in case of an accident. So, before you go ahead with a specific plan that you came across and liked, know that it would be better to compare different plans on multiple elements. Most importantly, it would be significant for you to buy your two-wheeler insurance after knowing the different types. It is because only then you will be able to analyse what you want in the first place.
Types of Two-wheeler Insurance
The different types of two-wheeler insurance you may find during your search include:
Third-party Bike Insurance
The third-party two-wheeler insurance policy is mandatory for every two-wheeler rider. This policy type provides compensation for financial liabilities claimed by a third-party individual, property or vehicle due to an accident, where the insured's bike is at fault.
Talking about benefits, third-party two-wheeler insurance provides cover for expenses of third party property damage caused by the insured’s two-wheeler. Moreover, the third party insurance policy provides compensation to third parties for bodily injuries or death as decided by the court. However, the policy does not cover expenses of damage of the insured’s two-wheeler as well as bodily injuries or death of the owner or driver.
The compensation amount of property damage can be availed up to Rs. 1 Lakh. Riding a two-wheeler without insurance is illegal in India. In a case like such, the rider can be penalised with Rs. 2,000 and/or imprisonment of up to 3 months.
Comprehensive Bike Insurance
Comprehensive bike or two-wheeler insurance is a policy type that provides coverage for the loss/damage incurred by the insured’s two-wheeler along with third-party liabilities. It is an all-inclusive two-wheeler insurance plan that provides protection to the two-wheeler and insured.
The benefits of comprehensive two-wheeler insurance include coverage against damage or loss due to natural calamity, damage or loss due to manmade calamity, own damage cover, third party liability, theft, and explosion and fire. However, comprehensive two-wheeler insurance does not provide cover for depreciation/wear and tear, mechanical or electrical breakdown, illegal practices, accidents due to drugs, or any loss or damage due to mutiny, war and other events beyond compensation.
If interested, policyholders can customise and enhance their coverage under comprehensive policy by buying add-ons covers such as NCB Cover, Zero Depreciation Cover, Roadside Assistance Cover, Bi-fuel Kit Cover and more.
Standalone Own Damage Bike Insurance
Standalone own damage bike insurance is an insurance type which provides an insurance cover only for the insured individual’s bike’s own damages. If you want an insurance policy that provides protection to your bike against its own damages. Note that these damages could be incurred due to accidents, natural calamities, fire, thefts, damages incurred in transit as well as man-made disasters.
Standalone down damage insurance is not compulsory, however, learn that it provides greater protection than third-party two-wheeler insurance. What’s more is that there is no compulsion for long term plans in this policy type. In other words, the standalone own-damage cover allows policyholders to hold a third party insurance plan of 5 years as well as a standalone own-damage plan of 1 year that can be renewed every year. If interested, the insured can purchase add-on covers and receive NCB.
Remember, the standalone own damage bike insurance policy type does not provide cover for third-party liabilities, consequential damages, and contributory negligence.
It is of massive importance to gain an understanding of various two-wheeler insurance policy types so that you are not disappointed at the last moment. Also, it is advisable that before buying the ideal bike insurance cover, you look for factors such as claim settlement ratio, cashless network garages, customer service & support, requirement for add-ons, coverage, policy tenure, exclusions and premium amount.
In case you need assistance with your two-wheeler insurance purchase, feel free to contact the team of InsuranceDekho to get your queries resolved.
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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.