Two Wheeler Insurance- Types of Cover you need, Exclusions, Benefits 17th Sep 2020
Two-wheeler insurance provides coverage to two-wheeler vehicles and bikes. It primarily covers any losses incurred from road accidents, natural disasters, or theft. The motor vehicle act of 1988 also makes it mandatory for owners of vehicles to have valid motor insurance. You are liable to pay hefty penalties otherwise.
But what type of covers should you choose? Are there any exclusions? What benefits do these covers entail? All of these are recurring questions that will annoy you before you settle for a plan of your choice. So, read along to have these queries answered.
What are the types of two-wheeler insurance policy?
The two variants of two-wheeler insurance policies available in the market are third party and comprehensive cover. But before you choose from these two, you need your insurance expectations fulfilled without having to exceed your budget.
- A third party cover is the cheapest option you can avail as of yet. This cover will save you from any legal liabilities if and when your vehicle is involved in accidents or has caused third-party damage. However, this doesn’t entail cover for damages incurred to your vehicle.
- A comprehensive cover has a broader spread of coverage which includes damages to your vehicle along with third-party damages. This, perhaps, is reliably the best option for those who have bought a new bike.
Inclusion and Exclusions
Third-Party Two-Wheeler Insurance
The 2018 Supreme Court order mandates that it is compulsory to have a 5-year Third-Party Policy for two-wheeler owners. The cover will save you from liabilities associated with any third-party claim as well as personal injuries. However, there is no coverage provided for damage incurring on the vehicle or theft of the same.
Inclusions of Third Party Two-Wheeler Insurance
- If your vehicle has caused bodily injuries to any third-party, the legal liabilities concerning the cost of treatment will be covered under this policy.
- Similarly, damages incurred to any third party property will be fulfilled, and you will be compensated for the victim’s claim.
- The compensation amount forwarded to the victim will be subjective and settled by the Motor Tribunal Court.
Exclusions of Third Party Two-Wheeler Insurance
- Damage incurred due to non-collision is not covered under third-party
bike insurance
, for which the expenses are to be carried by you. - Damages on your vehicle won’t be covered as well
- Damages impacting your bike due to any natural disaster or theft won’t be covered under this policy.
Note: Be thorough while going through your policy documents.
Comprehensive Bike Insurance
This insurance policy provides comprehensive coverage to your own and third-party damages. Comprehensive bike insurance makes it more bearable for the owners to recover from an accident.
Inclusions of Comprehensive Bike Insurance
- Includes damages caused to your vehicle due to lightning, explosion, fire.
- Includes damages caused due to any natural disaster, including storms, floods, inundations, earthquakes.
- Includes recovery for vehicles stolen or damaged during strikes, or any malicious acts.
- Includes cover for accidents due to accidents by external elements like, for instance, terror activity.
- Includes cover for damages done during vehicle transit by waterway, lift, elevators, road and rail.
Exclusions of Comprehensive Bike Insurance
- Damages occurring when the policy has expired won’t be covered.
- Vehicular ageing causing vehicular wear and tear won’t be included.
- Damages due to any electrical or mechanical breakdown are not covered.
- If your vehicle is damaged when you are driving under the influence of any substance, no coverage is offered.
- Two-wheelers used for any commercial activity won’t benefit any coverage from this policy when damaged.
Verdict
Now since you are well aware of the nuances of these policy variants, all you need to do is check up on a two-wheeler insurance rate , read through the policy documents, compare insurance service products across insurers and choose a plan that fits your insurance requirement.