However, you can find many types of 2-wheeler insurance online. Choosing the right is essential if you want to ensure sustained protection for your two-wheeler.
In this blog, we discuss the different types of bike insurance and what type of plan to buy when buying two-wheeler insurance.
Table of Contents
Bike Insurance
A bike policy is a legal agreement that offers protection against accidents, theft, partial or total loss and other unforeseen scenarios. It is a customised contract between the policyholder and the insurance provider.
Policyholders need to pay monthly or annual premiums/fees to receive these policy benefits.
Types of Bike Insurance
Third-Party Bike Insurance
As the name suggests, third party bike insurance offers financial coverage for any third-party liability that arises from an accident, injury, death or property damage caused by the insured bike.
Third-party bike insurance is mandatory by the law and is also the cheapest type of bike insurance.
Coverage
- It covers the financial loss of a third party caused by an insured bike.
- Offers financial relief to third parties in case of bodily injuries and death caused by the insured bike.
Exclusion
- Does not cover any type of damage/loss – total or partial loss caused to the insured bike.
- Any damage/loss caused to the third party due to a breach of law. E.g., drunk driving, traffic law violations, racing, etc.
Standalone Own-Damage Coverage Insurance
An Own-damage policy only covers the loss and damage incurred on the insured bike. You can purchase an own-damage policy separately if you already have third-party bike insurance.
Coverage
- Loss and damage to the insured bike due to theft, accident, fire, natural disaster, vandalism, riots and more.
Exclusion
- Does not cover loss and damage caused to the third-party property.
- Any damage/loss caused to the insured bike party due to a breach of law. E.g., drunk driving, traffic law violations, speed testing, etc.
- General wear and tear of the bike due to regular use or any routine maintenance/service charges.
Comprehensive Coverage Insurance Meaning
Comprehensive two-wheeler insurance, meaning a policy that offers financial support in case of loss or damage, not only against third-party liabilities but also against the cost incurred by the insured bike and rider.
Comprehensive plans are usually the best bike insurance policies in the market since they combine third-party and own damage coverage under one plan. They also allow you to extend coverage via add-on riders.
Coverage
- Financial cover for loss and damage caused to the insured vehicle.
- Financial cover for loss and damage caused to a third-party bike involved in an accident.
- Offers cover for partial or total loss caused to the insured bike due to accidents, theft, fire, natural disasters, riots, vandalism and more.
- Financially covers the injuries sustained by the owner-rider.
Exclusions
- Damage was caused when the owner-driver of the insured bike was not following traffic, legal or standard rules.
- General wear and tear of a bike due to age.
Important Add-Ons to Know When Buying Two-Wheeler Insurance
- Personal accident cover is an add-on that covers medical expenses resulting from accidents causing injury to the owner-driver. This cover is mandatory and must be bought with all policy types.
- Depreciation is the decreased value of your bike’s parts due to wear and tear. The Zero depreciation add-on also reimburses the deducted depreciation of your bike parts at the time of claim.
- Return-to-invoice cover is when the insurance company offers the invoice cost of your vehicle as compensation against theft or complete damage.
- A No Claim Bonus Protection cover allows you to file a claim for damage/loss without having you lose your accumulated NCB bonus under your policy. Only one claim is admissible per policy year under this cover. If you file more claims, you will lose your accrued NCB.
- Emergency medical expenses add-on helps you gain reimbursement for an emergency medical treatment cost in case of an accident.
- The roadside assistance add-on offers immediate support or assistance if your bike experiences a breakdown or damage in the middle of nowhere. The policy helps you get help at your location.
Ending Note
Choosing the best bike insurance policy ensures your two-wheeler’s protection in many ways. For example, comprehensive bike insurance is perfect for new bike owners who prefer all-around security and numerous benefits. If you want minimal coverage and legal compliance, third-party bike insurance would be perfect.
Remember that choosing the best bike insurance and the best insurance provider are equally important. Choose a trusted, reliable and reasonable provider, such as Tata AIG, and experience the best service.