Two-Wheeler Insurance Policy Coverage Decoded
The Motor Vehicles Act of 1988 governs all the regulations pertaining to two-wheeler insurance in the country. For this, a regulatory body, the Insurance Regulatory Development Authority of India (IRDAI), is handed the powers to oversee all the law. Two-wheeler insurance is a branch of motor insurance classified general insurance policies. ‘
What is two-wheeler insurance?
Two-wheeler insurance, also commonly referred to as bike insurance, helps to protect your bike against damages due to events like accidents, fires, theft, natural disasters, and more. Further, the policy also provides cover against liabilities that may arise due to damages caused to third-party vehicles, property or a person. Two-wheeler insurance covers not just bikes, but also scooters, mopeds, electric two-wheelers and more.
Why is two-wheeler insurance necessary?
As per Statista, the two-wheeler sales in 2019 have almost doubled in the country from the year 2011. This significant increase in volumes is enough to indicate the preference among the consumers for two-wheelers. This multifold increase has led to congestion and traffic snarls due to which accidents are bound to happen. To protect yourself from third-party liabilities and cover any damages caused to your bike, two-wheeler insurance is mandatory.
What are the types of policies two-wheeler insurance plans you can purchase?
The law makes it mandatory to have at least third-party insurance cover. It is also known as liability-only cover that insures against claims made by third-parties. When you buy two wheeler insurance third party plans, note that these covers have limitations when it comes to coverage for damage incurred to your own vehicle. To overcome them, you can enhance your coverage using a comprehensive policy. A comprehensive plan combines the own-damage cover along with a liability-only plan to provide all-round protection.
What is the scope of a two-wheeler insurance policy?
Accidents: The most basic coverage by a two-wheeler insurance policy is against accidents. Accidents occur at unexpected times. To be prepared in the form of an insurance cover is the only protection against them. Depending on the type of policy, the plan provides coverage against accidents.
Burglary and theft: Although not as common as accidents, theft and burglary is still a concern against which you should seek an insurance cover. Third-party insurance does not provide coverage but a comprehensive plan does. Thus, it is beneficial to opt for comprehensive plans over a third-party policy.
Fire: Accidental fires may damage your vehicle beyond repair. Having a comprehensive insurance cover will pay out the insured declared value in such an event.
Natural disasters: A comprehensive bike insurance policy provides coverage to your vehicle against damages that are caused due to natural disasters. Some natural disasters that are included in your policy coverage are storms, cyclones, hurricanes, floods, etc.
Personal accident: The law makes it mandatory to include personal accident cover with your insurance policy. In case you don’t have one, a personal accident cover provides financial assistance up to a specified amount.
Third-party losses: Not only does a two-wheeler insurance plan protect you against own-damage, but third-party losses are also included in its coverage. Any event of injury or property damage to another person is covered by your insurer. This is the most basic and compulsory form of bike insurance that you need to have.
Now that you know the coverage of two-wheeler insurance, make a smart choice by selecting the one that meets your requirements. Remember, two wheeler insurance price increases depending on the coverage you opt for. Ride safe and stay insured!