Two-wheeler insurance is crucial for protecting a bike, its owner, the pillion rider, and protection from the third party’s liability. Read on to learn more about various types of insurance for your bikes.
Types of bike insurance
There are two categories of bike insurance according to the coverage they deliver.
- Third-party Insurance
Third-party bike insurance is mandatory in India according to the Motor Vehicle Act 1988.
If you are in an accident with another vehicle, third-party insurance covers your liability towards a third-party vehicle or its owner.
It covers any property damage, injury, disability, or death of the third party’s owner, driver, or pillion rider. It also covers any kind of legal liability towards the third party. You can only drive a two-wheeler in India with valid third-party insurance; however, it doesn’t cover any damages to the person buying the policy.
- Comprehensive Cover
A comprehensive cover is meant for the insured vehicle and provides third-party liability. It protects the insured from any damages to the vehicle or personal accident. The insurance is provided in case of theft, fire, natural calamity, or damage in transit.
You can also get add-on features for broader coverage.
Attributes your bike insurance should have
Before purchasing or renewing your bike insurance, ensure it comprises the below-mentioned features.
- Theft Cover
This cover is significant for those living in areas where theft is common. It certifies protection in case your vehicle is stolen.
- Accidental damage
This cover makes sure to lend you protection against any damages caused by accidents.
- Vehicle harmed by natural or man-made calamity
It protects your vehicle against fire, explosion, landslide, flood, etc.
- Third-party liability
It guarantees legal and financial protection to the insured against damages caused by your vehicle to the other vehicle or its owner.
- Personal accident cover
It safeguards you and your vehicle if you meet with an accident.
- Zero depreciation cover
It’s an additional cover provided by the insurance company.
For instance, if you claim without this add-on, you don’t earn the insured value but rather obtain the IDV, Insured Depreciated Value.
Let’s illustrate this in numbers, you bought two-wheeler insurance for, say, 2 lahks and claim after two years, you will not get the whole 2 lakh Rupees as the value of your vehicle has been reduced in those two years, which is called depreciation.
However, if you take this add-on cover, the depreciation cost will not be counted, and you will earn the entire insured value whenever you make a claim.
- Engine protection cover
The engine is the most affected part; its wear and tear are bound to happen while you are on the road, but unfortunately, it is not covered by the insurance company, especially in case of water damage.
But if you get this add-on cover, the insurance company protects against engine damage.
- No claim bonus
It’s a discount given by the insurance company on your premium if you did not claim in the previous year.
The best bike insurance for you
Third-party insurance protects you only from liability against the third-party vehicle or its owner. A comprehensive plan protects you, your vehicle, and your liability toward a third-party vehicle or its owner. All the above features are covered under a comprehensive plan (provided you have taken the essential add-on covers). A comprehensive plan is the best choice for your two-wheeler as it provides a holistic cover.
Buying bike insurance online is the most convenient way nowadays. Buy the policy after comparing it with the different providers in the market, such as hero insurance.
You just need a smartphone, and you can easily compare various plans and make an informed decision.