A comprehensive guide to various types of bike insurance policies

Since insurance is compulsory for every vehicle in India, it is mandatory for two wheelers too. You must remember that you not only maintain an insurance plan for four-wheelers if you own a two wheeler also you need to maintain a valid bike insurance plan. 

Introduction

two wheelers are one of the most common types of vehicles in India. The situation has changed in this direction even more during the pandemic lockdown phase when getting public transport became an all-time tough challenge. 

You can easily avoid unnecessary delays, and road traffics if you possess a personal means of transport that is handy and easy to maintain. A bike or any other two wheeler is a perfect fit under such circumstances. 

However, maintaining any vehicle implies the maintenance of proper driving habits and observing the traffic rules to keep risks at the minimum level. You must be careful about perfect documentation, including maintaining valid two wheeler insurance

What is meant by bike or two wheeler insurance?

Whenever you set out on the roads using your two wheeler, you automatically risk yourself and other people on the road at a certain amount of risk involving unprecedented accidental circumstances, sudden collisions, etc. It can be caused either by negligence or inexperience on your part, or that of the third party, or both. Such circumstances may be minor or can even become fatal. Maintaining two wheeler insurance acts as a safeguard during such occurrences. 

Here, the insurer promises to settle the liabilities and expenses that arise out of any particular insured bike, provided you pay the premium dues on time without fail. The nature and scope of coverage depend on the type of plan you have chosen.

Reasons for acquiring and maintaining bike insurance:

Maintaining a valid bike insurance plan is not a luxury, but a necessity and mandatory. Even if it was not mandated by law, you should have opted for it, as it comes with a host of advantages:

  1. Reduced financial stress: If your two wheeler gets damaged or stolen or gets involved in an accident, the insurance coverage will cover all the financial losses incurred, depending on the type of plan you have chosen.
  2. Offers personal accidental coverage: A two wheeler insurance not only covers vehicle damages but even provides financial benefits if you become physically disabled because of any bike accident. Moreover, if the accident proves to be fatal for you, your family is liable to receive the total amount of the sum insured from the respective insurance company.
  3. Provides legal protection: Violating traffic rules may cause you to pay hefty penalties. In case you fail to maintain valid bike insurance and get involved in any accidental circumstance involving your vehicle, you have to face significant consequences. Not maintaining bike insurance is an offence in itself. Therefore, proper maintenance of paperwork is essential to save you from unnecessary legal hassles. 

Various types of bike insurance plans in India:

In India, there are three basic types of bike insurance plans:

  • Liability-only third party cover: 

Third party bike insurance is the basic insurance variant, enough to maintain legal standards. This type of bike insurance exclusively covers third party losses and damages during any accident involving your two wheeler. It does not cover for self-damage cover or any damages caused to your and/or your bike. This sort of plan is ideal for vehicles that are quite too old. 

  • Standalone own damage cover: 

This particular type of two wheeler insurance plan provides coverage for damages caused to that particular two wheeler that has been insured. It covers damages beyond repairs caused by man-made calamities like riots, wars, etc., or natural disasters like floods, landslides, cyclones, etc. However, this sort of plan never covers any third party coverage. Therefore, you cannot buy this plan alone. You have to purchase it along with the mandatory third party plan. 

  • Comprehensive two wheeler insurance cover- 

As the name suggests, this is the complete insurance plan among the lot. It caters to both self-damage coverage and third party liability coverage. You can even customise the plan to a certain extent by incorporating special add-ons catering to your choice and requirements and enhancing the scope of the plan. Some of the most popular add-ons include roadside assistance cover, zero depreciation cover, etc. 

A comparative study among various types of two wheeler insurance plans

third party LIABILITY COVER STANDALONE OWN DAMAGE COVER COMPREHENSIVE COVERAGE PLAN
Provides coverage for the third party losses and damage liabilities caused by the concerned insured two wheeler Offers reimbursement for damages to the concerned insured bike allowing personal accident cover to the driver-owner of that bike Allows both self-damage and third party liability coverage 
Compulsory as per the current mandate of the Motor Vehicles Act, of 1988. Optional  Optional
The premium rates are decided by the IRDAI The insurance company fixes the premium rates The premium rates are decided both by the IRDAI as well as the concerned insurance company
The IDV of the two wheeler is not applicable for determining the total sum assured IDV is a major determinant of the total sum assured IDV is a relevant component for determining the own damage coverage issue in the plan
The standard premium rates are applicable. The premium rates are slightly higher comparatively Depending on the coverage assured; optional costs are applicable
Add-ons not available  Add-ons not available  Add-ons available 
The concerned Motor Accident Tribunal ultimately decides the payable amount during claim settlement. Depending on the insurance company’s surveyor’s report, the concerned insurer decides the optimum payable amount during any claim settlement It depends on the discretion of the concerned insurer to decide the total amount payable for claim settlement during the self-damage claim. However, the Tribunal decides the final word for third party coverage. 
Any damage caused to the insured two wheeler by natural calamities, theft, riots, war, etc., is not covered.  Damages caused to the insured bike due to natural and/or man-made calamities are covered. Damages caused to the insured bike due to natural and/or man-made calamities are covered

How to determine the bike insurance variant?

You can easily determine the type of your bike insurance plan by utilising the following steps:

  1. Visit the official website of your respective insurance provider and enter your registered mobile number. The details of the plan will be revealed instantly. You can even download the plan.
  2. You can even visit the official website of the Ministry of Road Transport and Highways and enter the valid registration number of your vehicle. It will reveal the insurance variant and its validity.

Conclusion

This article highlights the various types of two wheeler insurance plans that are currently prevalent in India. You can easily make your choice depending on the circumstances and preferences. However, if you are renewing a plan for an old two wheeler, then opting for third party bike insurance is the wisest option.

Disclaimer: the above information is for illustrative purposes only. For further details, please refer to the policy wordings and prospectus before concluding the sales. 

Leave a Reply

Your email address will not be published. Required fields are marked *