Why Two-Wheeler Insurance is Important?
India is till now a developing country, and the major reason behind this is its increasing population. And with the increasing population, it becomes difficult to move from one point to another on Indian roads. During peak hours, it takes more time for the person to reach home safely. It does not mean that due to an increasing population, traffic is increasing. Besides, there are many other factors behind it, like poor infrastructure on roads and uncomfortable public transport. People who own four-wheelers also find it difficult to deal with traffic. In this Indian situation of traffic, it has become mandatory for all to own two-wheelers. Day by day, the sales of two-wheelers are increasing, and it is because they hold many advantages, like that two-wheelers are best for Indian roads, they can be parked without any stress, they are affordable, and last but not least, one can easily drive two-wheelers in heavy traffic.
These all made two-wheelers an ideal choice for families to purchase. But do not think that the problems have come to an end after purchasing it. With two-wheelers, there are more chances of accidents, as if you are in a hurry and try to overtake another vehicle, this may cause harm to you, and if there is no insurance for your two-wheelers, it may create a big problem for you.
In this blog, we will discuss why it has become important for two-wheelers to own an insurance policy.
Different Types of Insurance Policies
There are three different types of two-wheeler insurance policies:
Third-Party Insurance Policy
Under the Motor Vehicle Act of 1998, it is crucial for two-wheeler owners to have a third-party insurance policy. This policy helps save the insurer from paying a heavy amount to the third party in case of their death or property damage.
Comprehensive bike insurance policies
This insurance policy is ideal as it covers the damages to the insured vehicle as well as third-party liabilities. It covers more aspects than a third-party insurance policy.
Stand-alone damage insurance policy
This insurance policy does not cover any third-party liability; rather, it covers all damages incurred by the insurer in an accident.
What are the coverages under two-wheeler insurance policies?
Now, you are aware that in India, there are three different types of insurance policies. Now, let us know what types of coverage one gets from these policies.
Third-party liability coverage
This plan only covers two things, and these are:
If, unfortunately, in an accident you damage or injure a third party, it becomes your responsibility to pay them. But third-party insurance protects you from paying another party to whom you have caused damage.
Personal Accident Cover
This plan offers personal accident coverage to third parties.
A comprehensive insurance policy includes:
Loss due to a natural calamity
With the increase in global warming, natural calamities occur frequently in many states of India. Loss of two-wheelers due to floods, earthquakes, cyclones, fire, and many more are covered under the comprehensive plan.
Loss due to man-made calamity
Not only natural calamities but also man-made calamities like riots, strikes, etc. are included in the comprehensive plan.
Loss due to theft
Unfortunately, if your bike gets stolen, you will be compensated on the basis of its insured declared value.
Standalone Damage Policy
Compensate you for your own vehicle.
This policy will compensate you only for the damage to your own vehicle.
How does Two- wheeler insurance protects you?
Two-wheeler insurance protects you in two major ways:
Suppose your bike goes out of control for some reason and causes harm to a third party. In this case, you are liable to pay the third party. But third-party insurance policies protect one from this legal liability.
If your bike gets damaged due to a natural or man-made calamity, you also need to incur a heavy amount on repairing your vehicle, as a comprehensive plan includes all the calamities covered. Thus, saving your expenses.
Reasons to know why two- wheeler insurance is important?
Two-wheeler insurance protects you in two major ways:
A two-wheeler is a convenient means of transport. It became more popular when brands like Hero Honda and Maruti Suzuki set up manufacturing plants in India. Slowly and gradually, people across India started purchasing two-wheelers because of these multinational brands alone. Driving a two-wheeler invites a number of risks. So, it became important for all the two-wheelers to have an insurance claim. Let us know why it became important to have insurance.
As per the Indian Law of Motor Vehicles Act, the Government of India has made it mandatory for all two-wheeler owners to have a third-party insurance policy. Which will cover all the damages caused by an insurer to a third party.
Reduces the financial burden
Accidents are unpredictable in India, and anyone can get hurt in an accident, whether you are the owner or a passenger. If you have caused harm to a third party and they become disabled after an accident, this situation will force you to pay liability against the third party. Thus, if a two-wheeler owner has an insurance policy, it will relieve them of paying a heavy amount to a third party.
Compensation provided in natural calamities
Neither a third-party insurance policy nor standalone insurance provide you with this benefit. But comprehensive insurance policies compensate one for natural as well as man-made calamities.
In case your bike gets damaged, you can freely take it to the garage for repair, and you don’t have to arrange any funds as the bill for those repairs will be compensated by insurance provider to the garage. Thus, you can claim for damage on your insurance without paying any cash.
Buying and renewing an insurance policy regularly will be beneficial for you because you can get discounts such as the no-claim bonus. Remember, if there are small dents on a bike due to an accident, in this case, never claim for insurance, as if you did, it would eliminate you from the benefit of the no-claim bonus. Basically, NCB is a reward given by the companies to insurers for safe driving.
These are the benefits of purchasing insurance. But there are some exceptions in which you will not get a claim. Let us know more about those exceptions.
Exceptional cases in which insurance is not covered:
According to the law, every two-wheeler is obliged to have an insurance policy, and there are also a number of benefits for it. But there are some exceptions in which a person cannot claim insurance, and those exceptions are:
- When a driver is under the effect of drugs or alcohol
- When a driver does not have a driving license
- Damages undergone during a war
- In case of mechanical breakdown
- Tires and tubes are damaged
All the exclusions are already mentioned in the insurance claim papers, so before purchasing an insurance policy, one should read all the damages that are covered by the policy so that you won’t get any surprises when claiming for it.
Comparison between Third- Party and Comprehensive Policy
|Damages to one’s vehicle due to accident|
|Damage due to natural calamity|
|Damage caused in the event of fire|
Customize your IDV
Injuries or death of a third-Party
|Personal Accident cover|
|Damage to third- party vehicle|
Q1. Why is bike insurance so expensive?
Bike insurance is expensive in India because it involves more risk than driving a two-wheeler. Besides, it includes other factors like model, age, capacity, and value of the bike.
Q2. Where can I buy an insurance policy?
Q3. What is the price of bike insurance?
The price or rate of bike insurance is dependent on the following factors: the model of your bike, the capacity of the engine, the age of the owner, and many more.
Q4. Which insurance policy is the best to buy?
Both third-party insurance and comprehensive insurance policies are better. But in a comprehensive insurance policy, one can also claim any damage related to natural calamities.
Q5. Can I get discounts on an insurance policy?
Yes, obviously, you can get discounts on buying an insurance policy if you are buying it online, and other than this, you are eligible for discounts when you have a good driving record and have installed security devices on your bike.
In conclusion, it is important for all to purchase an insurance policy, and now we have the option to purchase it online, where we can get huge discounts. One just needs to install an application, fill up the following sections related to bikes, make a payment, and you are done. And one can have access to all the documents through a single medium.