What is Bike Insurance?

Published On 31 Oct 2019 By Deepali Aggarwal

Here is everything you need to know about bike insurance

A bike insurance, technically called a two-wheeler insurance, is an ideal tool to safeguard yourself against the financial losses which may arise due to an unfortunate event like a road accident involving the two-wheeler. According to the Indian Motor Tariff, 2002 it is mandatory for every bike owner to have at least a third party bike insurance cover.

Types of Bike Insurance

On the basis of coverage, there are 3 types of bike insurance plans as explained below:

1. Third Party Bike Insurance Plan: A third party bike insurance plan also known as liability only bike insurance plan is the most basic of all bike insurance covers. It insures a policyholder against only but all third party liabilities be it bodily injuries/death of a third party or property damage incurred by a third party. Thus, it provides no insurance cover for damages incurred by the insured’s bike.

2. Comprehensive Bike Insurance Plan: A comprehensive bike insurance cover provides for all the shortcomings of a third party bike insurance cover. Also known as a package bike insurance policy, a comprehensive bike insurance plan provides coverage for all types of damages incurred by the insured’s bike in an unfortunate event. Thus, it provides coverage for both third party liabilities as well as own damages suffered by the insured’s bike.

3. Standalone Own Damage (OD) Bike Insurance Plan: As the name suggests, a standalone own damage bike insurance plan provides insurance cover only for own damages incurred by the insured’s bike in a mishap. Thus, it does not provide coverage for third party liabilities. Thus, if you purchase a standalone own-damage cover, you need to purchase a third party cover as well to meet the legal requirements established by the Indian Motor Tariff, 2002.

Coverage Provided by Different Bike Insurance Policies

Type of Loss

Third Party Plan

Comprehensive Plan

Standalone OD Plan

Bodily injuries of third party

✔️

✔️

Death of third party

✔️

✔️

Property damage of third party

✔️

✔️

Own Damage of Insured’s Bike

✔️

✔️

Theft of Insured’s Bike

✔️

✔️

Following is the list of events in which an insurance company provides coverage for the own damage incurred by the insured’s car under a comprehensive and standalone own damage covers:

  • Road Accident
  • Natural Calamities - Floods, Earthquakes, Cyclones, etc.
  • Fire/Explosion
  • Riots, Strikes
  • Terrorist Activities
  • Damage During Travel By Air, Rail, Road, Water.

Which Bike Insurance Plan Should I Buy?

The answer to this question entirely depends upon the requirements and budget of the bike owner. While a third party bike insurance cover is a mandatory requirement, a comprehensive bike insurance cover is a recommended plan as it provides complete insurance coverage for your much-loved bike.

Disclaimer: This article is issued in 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.

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