Two Wheeler Insurance

5 Benefits of Two-Wheeler Insurance Policy

By Admin
Mar 31, 2021

Just like a helmet acts as a physical form of protection, two-wheeler insurance ensures financial protection for the rider. Apart from wearing a helmet at the time of riding, every two-wheeler rider is expected to have a two-wheeler insurance policy issued for their vehicle. If caught riding without a valid two-wheeler insurance policy, you will be fined for breaking the law. 

A two-wheeler insurance cover helps you avoid these unwanted penalties. It also covers the sudden financial costs arising in case of a road accident. But there is more, let’s look at the benefits of two-wheeler insurance policy: 

 1. Be Safe In Case of Third-Party Liabilities:

As per the Motor Vehicles Act (MVA) of 1988, a Third-party liability policy is compulsory for all vehicle owners in India. This is done to ensure financial coverage if a third party is affected or suffers losses due to the insured. 

In some cases, the cost of compensation is unaffordable. With two-wheeler insurance, the insurer takes care of the third-party property loss compensation of up to INR 7.5 lakhs. There is no upper limit in case of third-party liability cover for bodily injury or death of third-party. Even, in the case of legal liabilities, the insurer is responsible for paying the financial costs owed by the insured.

You can also opt for a comprehensive bike insurance policy that provides coverage for all kinds of unforeseen events. Simply put, it is a combination of third-party liability insurance along with damage cover for your own vehicle.

2. Avoid Unwanted Penalties:

When it comes to traffic laws, the government has enforced heavy fines and punishments. This is done to reduce the risk of road accidents. It is against the law to ride without having an active insurance policy. If you fail to show the hard copy of the policy when demanded, you may have to pay a fine of up to INR 1000. Having a two-wheeler insurance policy while riding, will let you drive without any worry of penalties.

3. Personal Accident Coverage: 

Despite strict laws to reduce the number of road accidents, they are not uncommon; especially on narrow roads and ghats. In an unfortunate event, like a road accident, you may experience serious injuries. Some accidents have even led to the loss of life. 

As per the guidelines by IRDAI, it is mandatory to have a personal accident(PA) cover of INR 15 lakhs as part of PA coverage. This can be claimed in case of injury, death, or any permanent disability resulting due to an accident. 

This Personal Accident (PA) coverage is issued in the name of the owner of the vehicle. You are entitled to the cover only if you have a valid Indian driving license. 

The compensation under the Personal Accident Cover will be as per the table below:

EventPercentage of compensation
Death of the rider100%
Loss of limbs or sight of eyes100%
Loss of any one limb or sight of any one eye50%
Complete Permanent Disability100%

4. Protection for Your Vehicle: 

A standard comprehensive two-wheeler insurance policy provides coverage in a wide range of scenarios like theft, fire, natural or man-made calamities, vandalism, etc. Based on your needs, you can even increase the scope and coverage amount with Add-on products. Some of the most common Add-ons for a two-wheeler are Pillion Rider, Zero Depreciation Add-on, Roadside Assistance, Key Replacement Cover, etc. Apart from these benefits, a Comprehensive Insurance policy covers the costs for damage caused to your bike due to an accident.

5. Ride Without Worries

Even as a safe rider, accidents can occur. So, it is important to be financially prepared for unexpected scenarios. Two-wheeler insurance is the key to riding without any worries. A financial cover takes care of the burden of any unforeseen crisis in the event of a road accident. It also makes you a law-abiding citizen. 

If you are still not convinced, here is a quick comparison to help you understand the benefits of riding with and without a two-wheeler insurance policy:

CoverageRiding With Comprehensive Two-Wheeler Insurance CoverRiding Without Two-Wheeler Insurance Policy
Third-Party LiabilitiesCovered Not covered
Damage to Third-Party property Covered Not covered
Personal Accident Cover Covered Not covered
Damage to own vehicleCovered Not covered
Theft of vehicleCovered Not covered

It is quite clear that if a person owns a two-wheeler and is riding it without an insurance policy, he might end up paying a lot of money from his pocket, especially in case of accidents or theft.

Summary: 

It is important to note that getting caught without valid two-wheeler insurance is punishable. A two-wheeler insurance coverage allows the insured to not only protect his vehicle but also deal with unexpected Third-party liabilities. You can use various online platforms to compare and buy a two-wheeler insurance hassle-free. Remember to always ride safely and stay financially secure.

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