Types of Bike Insurance

Indian traffic laws mandate all vehicles to hold insurance to drive legally on the road. Insurance is essential to protect your vehicle against any financial losses occurred in the event of an accident. The compensation you may get is dependent on the type of insurance plan you have opted for your vehicle.   Different insurance companies have different insurance covers to suit the diverse needs of people. However, there are three basic insurance plans that a rider can choose for their vehicle. This article will shed light on what are the types of two wheeler insurance, and which policy will be the most suitable for you. So let us go ahead and explore each insurance type in-depth.

Why Should You Get Insurance for Your Bike?

As we mentioned, getting insurance is not a choice but essentiality to drive legally in India. However, if it wouldn’t have been a compulsion, we would have still recommended you to get one as there are several advantages of owning insurance. Let us discover some of the benefits that an insurance cover offers:  

1. Lowers Financial Stress

In case your vehicle gets stolen or goes through an event of an accident, insurance helps to cover the costs of damages. Vehicle repairments can cost a fortune, and having valid insurance can surely save you a huge amount of money.  

2. Provides Personal Accidental Coverage

Insurance not only pays for the damages that occurred to your vehicle but offers benefits up to Rs 1 lakh if you get permanently disabled due to the accident. Moreover, if unfortunately the accident leads to your demise, your family recieves the sum assured by the insurance company.  

3. Offers Legal Protection

Penalties for offending traffic laws in India are exceedingly expensive. If you do not have valid insurance for your bike, you may have to pay hefty fines. So having insurance for your vehicle at all times will ensure you stay away from paying such penalties.

Types of Two Wheeler Insurance

Coming back to the question, what are the types of bike insurance in India? Let us take a look at it.

1.     Third-Party Insurance

This is the most basic insurance type, which is compulsory for all vehicles. Third party bike insurance covers the damages occurred to the third-party in an accident. The compensation amount under this policy is limited to Rs 1 lakh.   However, this policy does not provide any coverage for the cost of damages to your own vehicle. It is most preferred by people who have very old vehicles.   Benefits  

• Cost of damages of third-party vehicles.
• Compensation for any personal damage to third-party vehicle’s owner.

  Exclusions  

• No coverage for damage of your vehicle.
• No compensation for your own personal damages.

 

2.     Comprehensive Insurance

The most advised insurance type is comprehensive insurance for two wheelers, especially if your bike is new. This is a complete insurance policy that covers damage costs of your own as well as the third-party vehicle.   In addition, you can also include several add-on covers in this policy such as zero depreciation cover, roadside assistance, etc. by paying extra premium. You can get this two wheeler insurance online from Bajaj Finance.   Benefits

• Coverage for damage to your own vehicle.
• Costs of damages of third-party vehicles.
• Additional discounts and add-on covers.

  Exclusions

• No coverage of regular wear and tear of the vehicle.
• The policy can not be availed if the driver does not hold a valid driving license or is under the influence of drugs or alcohol.

 

3.     Standalone Own-Damage Insurance

Any person can avail this insurance policy for their vehicle. It covers the losses and damages of your vehicle. It protects your vehicle against:

• Natural calamities such as earthquakes, floods, lightning, fire, etc.
• An accident caused by any external means.
• Theft, burglary, riots, terrorist activity, etc.

Difference Table for Types of Insurance Bike Policies

Let us compare and understand what are the types of bike insurance and their various characteristics using the table given below:  

Covered Costs	Third-Party Insurance	Comprehensive Insurance	Standalone Own-Damage Insurance
Damage to Own Vehicle	❌	✔	Optional
Damage to Third-Party Vehicle	✔	✔	Optional
Personal Accidental Cover	❌	✔	Optional
Loss Due to Theft	❌	✔	✔
Loss Due to Natural Calamities	❌	✔	✔

 

Frequently Asked Questions

1. Can I buy any of these two wheeler insurance online?

Yes, all these policies can be bought online from various insurance companies.  

2. What does IDV mean in my bike’s insurance?

Insured Declared Value or IDV is the maximum value that the insurance company will pay for your vehicle in case of any claims made by you.  

3. What is zero depreciation in a two wheeler insurance?

Over time, your bike loses its market value due to regular wear and tear and its growing age. A zero depreciation bike insurance policy ensures that your bike’s value does not depreciate with time and you get full benefits on your insurance policy.

Conclusion

Now that you are well-acquainted with what are the types of two wheeler insurance available in the market. You can decide which policy suits you the best depending upon your requirements and make an efficient decision for yourself.