What Are the Types Of Two-Wheeler Insurance In India?
by Kotak General Insurance Insurance ConsultantBuying your first bike brings a lot of
pride and pleasure. Plus, in the populous metro cities with never-ending
traffic, two-wheelers are considered very convenient travel partners. But to
keep your bike safe, secure, and in sterling condition, you need to protect it
with two-wheeler insurance.
Vehicle insurance is mandatory by law. But
it does not mean that you don’t get to choose the means by which you want to
protect your bike. It just means that you have more than one option when it
comes to two-wheeler
insurance. To decide which bike insurance you should choose and how you can
make it more effective, you need to know all about the types of two-wheeler
insurance available in India.
Before we dive into the types of bike
insurance, let’s look at the parties or candidates involved in an insurance
policy.
●
First-party
First-party refers to the policyholder who
is also the bike owner. Hence, you are the first party on a bike insurance
policy who pays the premium and is eligible to file a claim.
●
Second-party
Second-party refers to the insurance
company that the first party has bought your policy from. The second party is
responsible for offering protection to your bike and providing you with
financial assistance after filing a claim.
●
Third-party
Third-party in a bike insurance policy
refers to anybody that the first party has caused damage to. It could be a
pedestrian or another driver. Hence, if you get into an accident with someone
due to a fault of your own, the person you cause damage to will be referred to
as the third party in your insurance policy.
There are three types of two-wheelers
available in India
1. Third-party two-wheeler insurance
Third-party bike insurance is the type of
insurance that is mandatory under the Motor Vehicles Act of 1988. This type of
bike insurance is responsible for paying for the damage caused to a third party
only. It will not cover any damage caused to the first party.
2. First-party or the standalone own damage
two-wheeler insurance
First-party or own damage cover refers to
the type of bike insurance that only covers first-party damage. This can be
bought separately with a third-party bike insurance policy. The standalone own
damage insurance covers any damage caused to the policyholder or their bike in
the case of accidents, natural disasters, self-ignition, theft, etc. The
premium for first-party bike insurance is decided by the insurance company. There
are no add-on coverages available for this type of two-wheeler insurance.
3. Comprehensive two-wheeler insurance
Comprehensive bike insurance is the most
extensive type of insurance that you can opt for. It has both third-party
liability coverage and first-party / Own Damage coverage. Comprehensive
two-wheeler insurance can be very diverse and modified as per the choice of the
policyholder. If you buy comprehensive bike insurance, you do not need to buy
any other type of insurance.
Under this type of insurance, your vehicle
is protected against any damage caused due to accidents, theft, self-ignition,
civil disobedience, riots, terrorist attacks, etc. Furthermore, you can make
your comprehensive bike insurance more well-rounded by opting for add-on
coverage.
What
are the add-on coverages in two-wheeler insurance?
There are many ways that your bike can
experience damage. It is not just limited to on-road accidents or natural
calamities. Even though you might not be able to anticipate other possible
sources of damage, the insurance companies have taken the initiative and laid
them out for you.
To tackle that, they offer add-on coverages
that protect you and your bike under many possible circumstances that are not
covered under a basic two-wheeler insurance policy. Some of these add-on covers
include tyre protection, engine cover, zero depreciation cover, personal
accident cover, etc.
Besides offering protection against damage,
there are add-on coverages that are aimed at providing you with assistance.
These include covers like roadside assistance, daily allowance, key
replacement, etc.
Conclusion
Given the diversity that comprehensive bike
insurance offers, it is considered one of the most desirable types of
two-wheeler insurance. However, to each its own. You should consider your needs
before you buy any type of bike insurance. One of the most efficient ways to
get the best insurance policy for your two-wheeler is to compare bike insurance
online. You get to see what different insurers have to offer you. Bike
insurance is a necessity for your safety. Hence, you must invest in one that
offers you the most protection.
For more information, visit the Kotak General Insurance website.
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Created on Jan 17th 2022 07:25. Viewed 216 times.
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Jan 24th 2022 23:08