Two-Wheeler Insurance And Its Types

Two-Wheeler Insurance in India

In India, the Motor Vehicles Act, 1988, mandates every vehicle owner to have a third-party liability insurance to ply their vehicle on the road. With the rising bike repair costs and medical inflation, it is wise to have a comprehensive two-wheeler insurance policy and not just a third-party liability insurance. Let us explore the various types of bike insurance policies available in India, helping you make a cost-effective and rational buying decision.

Types of Two-Wheeler Insurance in India

Third-Party Liability Bike Insurance

A third-party liability policy is mandatory by law in India. It covers the damages and physical injury caused to third parties by your vehicle. For example, if your bike accidentally hits a pedestrian crossing the road, resulting in a minor injury or damage to another vehicle. In this case, your third-party insurance compensates for the medical expenses of an injured pedestrian or the repair costs to the third-party vehicle as per the limits of the policy.

What does it cover?

• Death or bodily injuries caused to a third party by your bike
• Damages caused to third-party property or vehicle
• Legal liabilities related to the accident

What doesn’t it cover?

• Loss or damage caused to your vehicle
• Personal accident cover for the rider of the insured vehicle

Third-party bike insurance comes with a five-year policy period. The premium for third-party bike insurance is set by the Insurance Regulatory and Development Authority of India (IRDAI). Currently, the following are the premium rates for third-party liability insurance for two-wheelers:

• New two-wheelers – Single premium for five years
• Engine capacity < 75 CC → INR 2,901
• Engine capacity > 75 CC but < 150 CC → INR 3,851
• Engine capacity > 150 CC but < 350 CC → INR 7,365
• Engine capacity > 350 CC → INR 15,117

Comprehensive Two-Wheeler Insurance

A comprehensive two-wheeler insurance is designed to provide extensive coverage, including coverage for third-party liability and own damage. Comprehensive policies are customisable as per your coverage needs. You can opt for optional add-ons or riders like roadside assistance, engine protector, zero depreciation cover, return to invoice cover and more.

What does it cover?

• Third-party liabilities, including death, bodily injury and property damage caused to third parties, and the legal liabilities related to the accident.
• Loss or damage caused to own vehicle due to accidents, theft, fire, and natural calamities, etc.
• Personal accident cover for the owner rider

What doesn’t it cover?

• Damages caused due to driving under the influence of alcohol and intoxicating substances
• Damages caused due to driving without a valid driving license
• Mechanical and electrical breakdown
• Accidents outside the geographical boundaries
• Loss or damage due to carelessness
• War and nuclear perils

Standalone Own-Damage Bike Insurance Policy

Standalone own-damage policies provide coverage for you and your bike against any damage or loss arising from accidents, theft, fire, and natural disasters. However, it does not include a mandatory third-party liability cover. If you already have a five-year third-party liability cover, buying a standalone own-damage cover on an annual basis gives you flexibility to upgrade or enhance the coverage at the time of renewal every year.

What does it cover?

• Loss or damage caused to own vehicle due to accidents, theft, fire, and natural calamities, etc.
• Personal accident cover for the owner rider
• Optional add-ons like zero depreciation cover, engine protection, etc. at an additional cost

What doesn’t it cover?

• Death or bodily injuries caused to a third party by your bike
• Damages caused to third-party property or vehicle
• Legal liabilities related to the accident
• Other general exclusions, like driving under the influence of alcohol, an invalid driving license, mechanical breakdown, etc.

At Jio Insurance Broking, you can explore various types of two-wheeler insurance policies offered by all the leading insurance companies. You can compare the policies that suit your needs and budget on the basis of their features, benefits and cost on a side-by-side basis. The platform helps you make an informed and cost-effective choice while buying two-wheeler insurance coverage.

Along with types of policy, consider other key factors like insured declared value, cost, add-ons, network garage, claim settlement ratio of the insurance company, etc., while choosing the bike insurance.

Conclusion

To conclude, two-wheeler insurance policies are available in three different variants to meet diverse insurance needs and affordability. However, upgrading to a comprehensive two-wheeler insurance policy with bundled coverage can give you extensive protection. Ensure to avail the necessary add-ons while customising your comprehensive two-wheeler insurance policy. Choose your bike insurance coverage wisely to enjoy a smooth journey.