What is Two-wheeler insurance?
Two-wheeler insurance plan is a general insurance product, which ensures an iron-clad protection for a two-wheeler and its owner/driver against unfortunate events, including road mishaps, accidents or natural disasters that may require an unforeseen expense for the owner. A two-wheeler insurance policy eases out the financial burden that may arise out of situations involving damages or loss occurred to the owner/driver, the insured vehicle, or any third party or their property.
Importance of Two-wheeler Insurance
As per the Indian Motor Vehicle Act, 1988, it is mandatory for any two-wheeler plying on the Indian roads to have a valid insurance plan. Two-wheeler insurance plans not only provide coverage against third-party liability but also offer comprehensive coverage to the owner/driver of the two-wheeler. These plans cover Death or Disability of owner/driver and the cost of repair incurred due to damages occurred to own vehicle.
Benefits of Two-wheeler Insurance
There are umpteen benefits of two-wheeler insurance plans. Here, we are listing just 5 of the top benefits of two-wheeler insurance plans for policy holders.
Check them out:
- Personal Accident Cover - One of the major benefits of buying bike insurance is that you get personal accident cover of up to Rs. 1 Lakh for the individual driver and/or owner of the bike.
- Cover against Third-Party Legal Liability- Buying two-wheeler insurance helps you get comprehensive coverage against third-party legal liability that may arise in the event of damages caused by the insured bike.
- Protection against Natural Calamities- Buying two-wheeler insurance helps you ensure maximum protection against natural calamities and unforeseen situations such as Explosion, Fire, Earthquake, Typhoon, Theft, Burglary, Riot, etc.
- Add-on Coverage: All popular two-wheeler insurance plans provide add-on coverage in order to provide policy holders with additional benefits and perks like zero depreciation etc
- Online Services: Almost all two-wheeler insurance plans can be easily renewed or purchased online- even when the previous insurance has expired, the customers can renew online without inspection and documentation for most of the insurers on Policy Bazaar.
Types of Two-Wheeler Insurance
Basically, two-wheeler insurance plans are categorized into two types and each of these two types offer different set of benefits and perks to the policy holders.
- Third-Party Insurance: Also called limited liability insurance, this plan covers the insured and the owner/ driver of the two-wheeler against third party liabilities arising out of an accident, which causes damage or loss to the third party or its property as well as Death/Disability of the Owner Driver arising out of the Accident.
- Comprehensive Two-Wheeler Insurance: Also called package policies, this two-wheeler insurance offers comprehensive coverage to the insured two-wheeler vehicle. Apart from coverage for third party liability, this plan also covers Disability or the death of the owner/ driver and damage occurred to insured two-wheeler due to an accident.
Key Factors to Consider before Buying Two-Wheeler insurance Plans
The sheer multiplicity of two-wheeler insurance service providers and plans in the market can baffle even the most seasoned of investors. Therefore, it makes sense to consider a few vital factors when investing on two-wheeler insurance plans.
Here are 4 such factors that one must carefully consider before buying two-wheeler insurance plans in India:
- Coverage: This is one of the major factors you should consider when buying two-wheeler insurance plans. Buying two-wheeler insurance plans helps you get personal accident cover of up to Rs. 1 Lakh. It also provides you comprehensive coverage against third party legal liability.
- Online Services: Be vigilant of buying a two-wheeler insurance plan from an insurer that provides online services. This will help you renew your existing insurance plan easily and without any hassles from anywhere, anytime.
- Premium: Premium is another key factor that you must consider when buying two-wheeler insurance plan. It is fairly easier to get premium quotes online. You can easily calculate the premium amount using premium calculator tools online.
1. Is it compulsory for me to buy insurance for my two-wheeler in India?
Yes, as per the Motor Vehicle Act 1988, it is compulsory to have at least a valid third-party insurance plan for when riding a two-wheeler vehicle on Indian roads.
2. What type of coverage is offered under Third-party Insurance?
Third-party insurance plan covers:
- Legal liability arising out of an accident that causes permanent injury and/or death of a third party
- Legal liability arising out of an accident that causes damage to a third party's property
3. How much penalty do I need to pay in case my two-wheeler is not insured or my insurance has expired?
Driving without a valid insurance (at least third-party insurance) is illegal and this may attract a penalty of up to Rs. 2000 or jail for 3 months or both.
4. Does a two-wheeler insurance plan cover hospitalization expenses in case of personal accident?
It makes sense that you secure yourself against any possibility of financial obligations that may arise due to a sudden accident. Personal Accident (PA) cover in Comprehensive Two-Wheeler Insurance Policies offer compensation on death/permanent total disablement . You may also opt to provide coverage for the pillion passenger.
5. What are the exclusions on the Two-Wheeler Insurance Policy?
Listed below is the list of exclusions on the two-wheeler insurance policy:
- Normal wear and tear
- Any accidents or damages to a third party caused due to negligence of the driver
- Electrical or Mechanical failure
- Accidents or Damages caused when the two-wheeler is driven by owner/driver under the influence of alcohol/liquor/drugs
- Depreciation in the value of the insured vehicle
- Loss or damages caused due to war, or nuclear risks.