Two-wheeler insurance, also known as bike insurance, protects the policyholder from financial liability in case of damage sustained in an accident. A personal accident add-on also covers the owner-driver in the case of injury or death.
The policy is a binding agreement between the policyholder and the insurance company, which offers financial coverage in the event of an accident involving the insured two-wheeler..
Two-wheeler insurance is a great way to protect yourself from financial ruin in case your two-wheeler is stolen, involved in an accident, or sustains damage due to causes included in the policy. It's also the best way to stay in compliance with the law of the land
Getting your bike fixed after sustaining major damage in an accident can put a strain on your finances.
But having a two-wheeler insurance policy can cushion that blow. Instead of stressing out on how to pay the mechanic to get your beloved bike up and running again, you can rest easy knowing that you bought your insurance policy for just such a rainy day.
Plus, riding an uninsured bike by itself can attract strict action from the cops. Indian law mandates that all vehicles plying on its roads be covered by insurance, at the very least a third-party liability cover..
Covers financial liability in a claim involving a third party
◦ Provides coverage for damage to insured bike due to natural and man-made disasters
◦ Protects and finances arising due to theft of the insured two-wheeler
◦ Saves policyholder from legal fines
Covers owner-driver in case of injury or death arising from an accident involving the insured vehicle..
Two-wheeler insurance providers offer three major types of insurance policies to two-wheeler owners.
◦ Third-party Liability - These policies cover financial liability arising out of an accident that involves a third party - person, property, or vehicle. This type of insurance is mandatory under the Motor Vehicles Act, 1988.
◦ Own-damage Cover - This cover provides financial coverage to expenses that may be incurred as a result of damage to or theft of the insured two-wheeler.
◦ Comprehensive Cover - This form of coverage gives the best of both - third-party liability and own-damage covers. It's a type of policy that protects against third-party liability as well as expenses due to damage to or theft of the policyholder's insured vehicle.
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A standard two-wheeler insurance covers the following:
◦ Natural calamities - earthquakes, cyclones, floods, inundation, thunderstorms, hailstorms, etc.
◦ Man-made calamities - riots, strikes, malicious activities, etc.
◦ Damage due to fire, lightning, and self-ignition.
◦ Damage due to transit of the insured vehicle via inland waterways, road, rail, or air.
◦ Theft of the insured bike.
◦ Liability against third parties - property, vehicle, or person.
◦ Personal accident cover for owner-driver up to INR 15 lakh Coverage for add-ons as specified in the policy document..
Add-ons offer additional protection for your vehicle and can be a great way to avoid financial hassles in certain circumstances. Some of the standard add-ons offered by insurance companies are:
Zero Depreciation Cover - A zero or nil-depreciation cover add-on closes the gap between the invoice and depreciated value of the spare parts that are replaced during a claim. Without this add-on, the insurance provider would pay for the depreciated value of the part and the remaining would be covered by the policyholder.
No Claim Bonus - A no-claim bonus is a discount offered on the premium at the time of renewal if the policyholder hasn't filed a claim in the previous term. The higher the number of terms for which a claim isn't filed, the higher the discount offered. However, if a claim is filed, the discount is revoked, and you will have to pay the difference. A no-claim bonus protection add-on safeguards your no-claim bonus discount in case a claim is filed.
Return to Invoice - The insured declared value of your bike takes into account the depreciation. With the return to invoice add-on, the claim amount in case of a total loss of the two-wheeler will be the invoice value as opposed to the insured declared value.
◦ Personal Accident Cover for Pillion - One of the standard add-ons offered by numerous insurance providers is a personal accident cover for the pillion rider. In case of injury to or death of the pillion in an accident, this add-on covers up to the agreed-upon amount.
Consumables Cover - Two-wheeler insurance policies don't cover the cost of replacing consumables like nuts and bolts, engine oil, gearbox oil, brake oil, washers, bearings, lubricants, etc. With a consumables add-on, these expenses will be easily covered under the policy.
Roadside Assistance - With this add-on, you can rest easy knowing that help is just a call away if you ever face a breakdown mid-journey. The add-on covers issues like a dead battery, flat, tire, fuel replacement, electrical and mechanical repairs, etc.
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◦ General wear and tear
◦ Consequential loss
◦ War and war-like situations
◦ Damage due to racing, speed tests, reliability trials
◦ Damage caused due to breach of contract
◦ Nuclear perils
◦ Mutiny
◦ Own-damage expenses and personal accident cover if only third-party liability cover purchased
◦ Riding without a helmet
◦ Riding without a valid driver's license
◦ Riding while under the influence of alcohol or other intoxicants
◦ Rising under restricted-use conditions - e.g., damage sustained while riding during a flood of which you are already aware
Using a personal bike for commercial purpose.
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