UNDERSTANDING THE DIFFERENT TYPES OF TWO WHEELER INSURANCE COVERAGE

Purchasing two-wheeler insurance is a mandatory law in India. It is essential to get protection and financial assistance against any damages that may occur due to an accident. The extent of coverage depends upon the type of insurance plan you choose. Owning a bike is a responsibility for a driver. Apart from following the rules and regulations pertaining to driving on Indian roads, it is imperative to follow proper etiquette towards other road users as well. Like, holding proper documentation, a valid driving licence and an updated insurance cover for your two-wheeler.

 

 

Today, there are several insurance companies in India that offer different insurance plans to suit your varying needs. Remember to always compare different policies before making the decision to buy an appropriate insurance cover for your two-wheeler. Also ensure to be clear the policy terms and conditions, inclusions and exclusions.

Importance of Bike Insurance

Buying two-wheeler insurance does not just depend on a legal obligation but it is also beneficial in terms of providing protection against damages to the vehicle and injuries to the driver in case of an accident and even financially assisting you in times of such needs. 

The other reasons that make bike insurance essential are;

• Reduces financial stress.
• Gives personal accident cover.
• Gives legal protection.
• Provides coverage against man-made & natural disasters like flood, cyclone, storm, fire or terrorism.
• Provides coverage for vehicle theft.
• Offers peace of mind.

Types of Two-Wheeler Insurance

The types of two-wheeler insurance policies in India are Third-party liability insurance, Comprehensive insurance and Standalone Own Damage insurance. Let’s take a detailed look at each type to understand them better;

1. Third-Party Liability Insurance

Third-party liability insurance plan offers basic cover. It simply protects against damages caused to third-party bodily injuries and damages to the vehicle. It is a compulsory requirement to ride a bike in India. It is also known as a liability-only policy. This type of insurance policy also covers the property damage expenses sustained by the third party, temporary or permanent disability, and death of the third-party person due to an accident or a mishap with the involvement of the insured’s bike. However, it does not cover damages incurred by the insured bike or the insured person.

2. Comprehensive Insurance

A comprehensive two-wheeler insurance policy gives complete coverage and provides protection against damage caused to third-party as well as own damage. Own damage incidents like natural calamities, theft, riots or terrorist activity, self-ignition, explosion or damage caused during travel. It offers to pay the financial liabilities that you may incur towards a third party and provide compensation for expenses to own damages sustained by the vehicle. 

The comprehensive two-wheeler policy does not cover protection for loss of personal belongings, accidental loss or damage to the vehicle if under the influence of alcohol or drugs. One can also enhance the coverage of a comprehensive two-wheeler insurance policy by paying an additional premium to purchase add-on covers like zero depreciation or roadside assistance cover and so on.

3. Standalone Own-Damage Bike Insurance

A standalone own-damage bike insurance policy gives coverage and protects against the own-damages sustained by the insured vehicle due to an accident, theft, natural disaster, fire, or man-made calamity. It is also known as first-party coverage. In case of a standalone own-damage policy, insurers provide flexibility to policyholders for choosing an insurance company of their choice. 

So, the policyholders can buy a third-party policy and own-damage policy either from the same insurer or even a different one. It is all up to the policyholder. Also, an insured individual can broaden the coverage of an own-damage insurance policy by purchasing add-on covers to the plan.

Difference Between the Types of Two-Wheeler Insurance

 

Choosing a Two-Wheeler Insurance Plan

While purchasing any insurance plan it is necessary to go through all the options and research for the one that suits your requirements. In order to select the most suitable two wheeler insurance policy, you should assess your requirements and compare two wheeler insurance plans. 

Here are few factors that can help you decide in making your selection appropriately;

• Be aware of your coverage needs.
• Take into consideration your expenditures and liabilities.
• Assess your financial budget.
• Choose Add-ons wisely.
• Opt for a reliable and trustworthy insurance provider.
• Check the claim settlement ratio of the insurer.
• Ensure the claim settlement process is hassle-free.
• Look for terms and conditions, inclusions and exclusions and other details like premium calculation.
• Check for reviews.

Common Add-ons in Two-Wheeler Insurance

Here are the list of common Add-ons you can opt for, to extend your bike insurance coverage, depending on your needs.

• Roadside or Emergency assistance cover in case of bike at halt while driving due to battery issue or towing.
• Cover for loss or theft of key by providing replacement.
• Full compensation for bike parts that may get damaged due an accident with zero depreciation.
• Claim for cost of road taxes and registration under return to invoice cover.
• No claim bonus offered for not making a claim yearly.
• Engine protection cover due to water ingression or oil leakage.
• Cover for cost of consumables like screws, oil and tyre.

With so many options available, choosing the right insurance cover can become challenging. Hence It is vital that you thoroughly compare the two-wheeler plans available to help you get sufficient protection as well as save money.

Ways to Reduce Your Bike Insurance Premium

While there are many policies to choose from when it comes to bike insurance, there are many ways to help reduce the premium to bike insurance plans as well. Let’s take a look at how you can smartly reduce the bike insurance premium without missing out on availing extensive coverage for your two-wheeler;

• If any claim amount is lower than the total NCB discount you have accumulated on your policy then it is best to not register the claim
• Ensure to claim the NCB discount at the time of two-wheeler insurance renewal online or offline
• Installation of anti-theft devices on the vehicle can help reduce premium on policy
• Being part of the riding groups identified by IRDAI can help you avail lower two-wheeler insurance premium
• To reduce the premium amount, go for a higher voluntary deductible

Benefits of Purchasing Two-Wheeler Insurance Online

While you can purchase bike insurance offline as well as online, the benefits of doing it digitally are immense. Let’s see how. Two-wheeler insurance requires timely checks and renewal. In case you are not able to renew your policy within that time, your two-wheeler insurance policy will lapse and become invalid. Then you will not be able to claim any coverage benefits until you get it renewed. 

Take a look at the benefits of purchasing Two-Wheeler Insurance online;

• Unbiased Opinion as no involvement of any agent or influence
• You get to choose from the most suitable two-wheeler insurance plans as per your requirement
• It allows you to easily compare different bike insurance plans in terms of features, inclusions, and exclusions.
• It also helps you know the pros and cons of every policy and premium rate of different plans so that you are able to make an informed buying decision.
• It is highly convenient to purchase, renew or compare insurance online
• When purchasing bike insurance online, you can avoid paying an extra fee to the insurance broker or agent
• In case of any difficulty, you can get in touch with the customer care of the insurer and get your queries resolved
• Buying or renewing two-wheeler insurance plans online allows you to make payments via secure payment gateways
• There is an option of flexible modes of payment from which you can choose as per your own convenience like debit cards, credit cards or e-wallets
• While buying bike insurance online, you do not require any documentation as such. You avoid undergoing a lot of paperwork.

In the online insurance process, all you need to do is compare different plans with Quickinsure, and shortlist the most suitable one.

Conclusion

Thus, knowing how important two-wheeler insurance is, make sure you choose your coverage after checking for different types of bike insurance, matching it with your needs. It covers not only damage to your vehicle due to accident or theft but also assists in financial security. So, look for all the details, terms and conditions as well as inclusions and exclusions before making your final selection of your two-wheeler insurance plan. So, choose wisely!

FAQs – Frequently Asked Questions

Let's take a look at some frequent queries on Different Types of Two-Wheeler Insurance Coverage;

Q1. What to do if a two-wheeler insurance policy gets expired?

For every two-wheeler insurance policy,there is a date of expiry. It is upon us to renew it before it lapses to continue to avail it. If you fail to renew the policy on time, you still do it during the grace period provided by the insurer, but it cannot be renewed after that. In such cases, you shall have to buy a new policy altogether. So, it is advisable to renew your two-wheeler insurance policy before it expires.

Q2. Can I purchase two bike insurance policies for the same vehicle?

No, a bike owner cannot purchase two insurance plans for the same bike. However, you have the option to buy a third-party policy and own-damage plan separately from different insurance providers.

Q3. Can bike insurance be transferred to someone else? Like a new owner.

Yes, a bike insurance policy can be transferred in case of - from the old bike owner to the new bike owner, if it is sold. However, the policy transfer must be finished within 14 days from the purchase date of the bike.

Q4. Does bike insurance provide cover for scratches, dents or other outer damage?

Yes, bike insurance plans do offer coverage for scratches and dents on the vehicle. However, the dent and scratches need to be caused by any insured hazard mentioned under your policy document. For instance, vandalism or bike accidents. Then based on the deductible, you need to see whether it is worth filing for such a small claim. By avoiding filing for small claims, you can save on your NCB discount.