Two-wheelers keep India rolling. People find bikes more convenient and cost-effective than cars. But, India figures prominently in the list of countries with the maximum number of casualties due to road accidents. As per news reports, India accounts for over 10% of global deaths due to road accidents. This is why a bike insurance policy is obligatory for every bike owner. Bike owners must buy bike insurance policies to safeguard themselves from undesirable circumstances.
Here is the complete guide on bike insurance, its type, benefits, and coverage to help you understand a two-wheeler insurance policy better.
What does Bike Insurance Mean?
A two-wheeler insurance policy is a valuable investment made by bike owners to safeguard themselves against the financial losses that may come from an unwanted accident or damage. The insurance company and a bike owner sign a contract in which the insurer promises to offer financial aid to the policyholder for losses borne by the latter.
The policyholder must file a claim to get financial aid from the insurer. After the insurance company approves the claim, you will get covered for damages, repairs, injuries, or death of the policyholder or the third party, depending on the type of policy you purchase. We will shed light on the types later.
Why Should One Buy Bike Insurance?
Having a two-wheeler vehicle insurance is beneficial for everyone. It ensures that policyholders avoid the burden of unsought expenses against any accident, theft, or damage to the vehicle. Bike insurance is advantageous in both ways: when policyholders claim for aid, they get financial cover, and when a policyholder does not file a claim during the year, they can get a discount on their policy renewal.
Insurers cover the bike owner, the third party, or both parties, depending on the type of insurance policy. Moreover, a person can escape traffic fines as bike insurance is mandatory by law.
Different Types of Two-wheeler Insurance
There are mainly three types of two-wheeler insurance with different coverage, features and benefits.
Third-party Bike Insurance Policy
Third-party bike insurance is the most basic of all two-wheeler insurance which is mandatory for the bike owner by law. In this insurance policy, the insurer only covers the losses and damages of the third party. It is less expensive but offers limited coverage.
Comprehensive Bike Insurance Policy
A comprehensive bike insurance policy is the most popular as it offers various benefits covering both first-party as well as third-party losses, bodily damage or death. Despite being expensive, it provides more comprehensive protection coverage against accidents, theft, human-made disasters, and natural disasters. Moreover, comprehensive bike insurance also facilitates add-on covers like roadside assistance, zero depreciation for bikes, engine protection, consumables, and passenger cover.
Standalone Own Damage (OD) Bike Insurance Policy
Standalone own damage bike insurance only offers financial aid for own damage incurred by the policyholder's bike in an accident. So, you need to buy standalone OD bike insurance along with third-party insurance to fulfill the rules and regulations of India.
Different Types of Bike Insurance - Inclusions
As discussed above, different types of bike insurance policies offer different coverage. The following is a ready reckoner of the inclusions provided by different bike insurance policies:
Third-party Bike Insurance
- Property damage of the third party.
- Bodily injuries of the third party.
- Death of the third party.
Comprehensive Bike Insurance
- Own damage to the policyholder's bike due to road accidents, and man-made and natural disasters.
- Damage during travel by rail, water, or air.
- Damage posed due to natural calamities such as earthquakes, cyclones, floods, etc.
- Bodily injury of both the first party and third party.
- Damage to a third party.
- Death of both the first party and third party.
Standalone OD Bike Insurance Policy
- Own damage of policyholders and their bikes due to accidents.
- Theft of policyholder's vehicle.
- Damage caused due to natural calamities such as cyclones, floods, earthquakes, etc.
- Man-made calamities such as riots, strikes, etc.
Which Two-wheeler Insurance Policy Should One Buy?
Choosing the right two-wheeler insurance policy depends on the person's choice, budget, and need. The law has mandated third-party bike insurance for every bike owner, and you can also choose comprehensive bike insurance as it offers broader coverage and other benefits. The following are some points you should consider while buying the right two-wheeler insurance policy:
Bike insurance companies offer additional benefits such as personal accident, depreciation, and add-on covers. Check the add-on covers that an insurance company offers. However, you must pay extra charges to add this benefit to your policy.
Discounts on bike insurance plans are essential. You should check which discounts the insurance company offers. The most popular discount is NCB or no-claim bonus.
Most bike insurance companies offer renewal on their bike insurance plan. Look for a renewal option on your plan, as it is essential for continuous coverage.
Terms And Conditions
Checking the terms and conditions of your bike insurance plan helps you understand the insurance company's services.
People select different types of policies based on their budget. Coverage also affects the price of a policy. Confirm the suitable policy coverage according to your requirement and budget.
Confirm the premium amount before selecting the bike insurance. You should go for the premium amount you can easily afford and as per the policy coverage.
Different types of bike insurance policies offer various benefits, features and coverage. Still, if you want the best bike insurance with broader coverage and extra facilities, you should go with comprehensive bike insurance from the most trusted and reliable company. You can thus compare the plans of insurance companies on Paytm Insurance. Go for the policy that suits you the best.