Two wheeler insurance (Bike Insurance), as the name suggests is an insurance policy for covering your two wheeler against Accidents, Accidental Damage, Theft, Natural Calamities, Third Party Loss of Life/Property etc. The insured can opt for the coverage they require against which a premium is remitted to the insurer. The two wheeler insurance policy offers the policy holder a financial coverage in case any of the earlier stated perils were to occur. Without a valid two wheeler insurance policy in place, any individual have to bear the financial burden arising from their pockets which can be a strain on them.
IRDAI, after a recent directive from the Supreme Court, has made it mandatory for all two-wheeler owners in India to have a 5 year third-party policy for their vehicle mandatorily, right from the time of purchasing the vehicle. Vehicles plying without a valid insurance policy are liable to attract fines from the authorities. Hence, every owner of a vehicle has to have at least a mandatory third-party liability cover.
Third Party Liability Cover:
Third party liability insurance covers the damages caused by the insured, to an unrelated third party. In case of accidents, a third party liability insurance plan, covers all the damages that the insured driver has caused to the third party, their motor vehicle, its accessories and other property damage. It also covers bodily injuries to the third party. The policy however does not cover bodily injury to the insured.
Comprehensive Two Wheeler Insurance Plan:
This two wheeler insurance plan provides coverage for all the damages
caused to the third party (bodily injury or property damage), as well as suffered by the insured to the two wheeler due to a covered peril. The damages caused may be due to human acts (while driving) or a natural calamity. It covers the damages to the insured’s vehicle, third-party legal liability, theft and personal accident coverage.
Here are some of the features of a two wheeler insurance policy:
The factors that influence the premiums include:
The exclusions in a Two Wheeler policy include:
Add-on covers in two wheeler insurance (like car insurance) provide extra protection to the policyholder, over and above the coverage offered by a comprehensive two wheeler insurance policy. Some of the popular add-on covers in two wheeler insurance being offered by the insurers today are Zero depreciation cover, Personal Accident cover for the pillion rider, and 24×7 Roadside Assistance.
Personal Accident Cover for Pillion Rider
This cover provides personal accident coverage for pillion riders in the event of the pillion rider’s partial or permanent disability or death while riding the insured vehicle. The amount that can be claimed would depend on the type and the extent of injury suffered by the pillion rider at the time. It is a cover that should be taken if the insured travels with a pillion rider regularly.
This cover would entitle the insured to 24X7 roadside assistance in the event of a breakdown or a mechanical failure of the insured two wheeler. Among the services offered are Emergency Assistance, Towing facility in the event of a breakdown, Minor Repairs at the site of the accident/breakdown, Accommodation benefit due to the vehicle being unfit to ride, etc.
Zero Depreciation Cover
This is also known as Depreciation Reimbursement or Bumper to Bumper cover. The Insurer will pay you the amount of depreciation on account of wear and tear which is deducted on the value of parts replaced under own damage claim, lodged under the own damage section of the policy. They will pay for the first 2 claims reported to them during the Period of insurance.
This add on would provide coverage to any electrical or non-electrical accessories added to the two wheeler, resulting in the insurance company covering the cost of replacing/repairing them.
Most Insurance companies now offer long term two wheeler insurance plans that have tenure of 2-3 years. This is ideal for both the vehicle owner and the insurer since they need not worry about renewal of insurance for up to 3 years. The advantages of the Long Term Policy include: