Types of two wheeler insurance in India – which one to choose
Two-wheeler insurance has been made compulsory by the Motor Vehicles Act 1988 due to an increased number of bike accidents. A bike insurance policy offers protection against the liabilities caused by accidental injuries. Depending on the kind of policy you have purchased the coverage varies. Hence, make sure you are buying a two wheeler insurance plan that provides maximum coverage at the best price.
Generally, there are two types of two-wheeler insurance – Comprehensive and liability-only insurance policy. This article gives an insight into the types of insurance policy for bikes.
Comprehensive bike insurance policy
A comprehensive bike insurance policy covers losses incurred by the third party. Any damage caused to the insured bike also comes under this scheme. If your motorcycle undergoes damage due to natural calamities, theft or any severe destruction, you are liable to get coverage for the loss incurred. Comprehensive insurance plan aims at providing accidental coverage for both the owner and rider. It is always preferred to buy comprehensive two wheeler insurance so that the owner can minimize the cost to a great extent. Unlike the liability-only insurance policy, it is not mandatory to obtain comprehensive coverage for bikes.
Features and benefits:
By insuring the two-wheelers under the comprehensive policy, the owner will get protection against accidents and various kinds of damages. Damages caused by natural disasters, partial or complete damage to the vehicle, vehicle theft or loss. Don't use plagiarised sources.Get your custom essay just from $11/page
Free garage facility is another benefit you can get from this policy plan. Your vehicle breakdown will gain coverage under this comprehensive 2 wheeler insurance scheme. When your bike is in the garage for repair, you don’t have to spend anything (except the deductibles).
In case you are planning to sell your current bike and buy new, you can transfer the NCB (No Claim Bonus) to the new one. It is also possible to transfer the NCB when you are porting from a current insurer to another one. To avail the benefits of the transfer of NCB, you need to follow the guidelines of the insurance company.
Coverage offered by Comprehensive insurance policy:
- Personal accident
- Protects against costs incurred due to damages
- Coverage against third-party liability
- Coverage against death or bodily injury
Liability-only insurance plan
Liability-only insurance plan, also known as the third party insurance policy is an affordable insurance policy that covers the liability incurred by accident. The liability-only insurance policy for bike provides coverage for bodily injuries, fatalities, property damage and death of the insured. Liability-only insurance plan is available for all kinds of vehicles – be it private or commercial. Insurance coverage for own damages or theft will not get coverage under the liability-only insurance policy.
Coverage offered by third-party liability insurance scheme:
- Bodily injury or death of the driver/owner
- Permanent disability of the driver or bike owner
- Death of the third party
- Personal accident cover for pillion rider
Final Verdict:
If you are a rider with a good experience and track record, you are more likely to get insurance policies at a lower rate. No matter what kind of bike you own, having it insured relieves you from the unexpected additional costs and damages.
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