What Are the Types Of Two-Wheeler Insurance In India?

by Kotak General Insurance Insurance Consultant

Buying 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.