When planning to buy a buy, you might have come across of the requirement to select an insurance cover. Such requirement to buy a bike insurance policy is stipulated by the law and is in accordance with the Motor Vehicles Act.
A bike insurance policy not only ensures legal compliance, but also offers financial protection against damages. Hence, considering the dual benefits it offers, it is best to make a smart purchase when it comes to two wheeler insurance policies. Considering the myriad choice of policies, it can get confusing which policy is right for you. So, to simplify this decision, you need to know what is covered under the different types of insurance plans. This article sheds light on the coverage of different bike insurance plans.
- Third-party bike insurance
The most basic two-wheeler insurance coverage that you need to buy is a third-party policy. A third-party policy covers only the legal liabilities arising on you, the policyholder. These liabilities can either be due to an injury to a third person or as a result of property damage of such other person. Hence, it is also called as a liability-only cover. Such third person is an individual who is not a part of the contract of insurance, i.e., neither you nor the insurance company and is the bare minimum requirement as per the law. Since it is the most basic insurance coverage for your bike, the premiums are regulated by Insurance Regulatory and Development Authority of India (IRDAI). This way, every two-wheeler owner can purchase an insurance coverage. However, a limitation of such liability-only cover is that it does not offer coverage for damages to your bike, thus leaving it exposed to dangers. You can visit the official website of IRDAI for further details. *
- Comprehensive bike insurance
Comprehensive plans, as the name suggests, offers much wider coverage than a third-party policy. Its policy coverage not only includes protection for third-party injury and damages, but also covers the repairs that may be required to your bike. As in case of an accident, it is not only the third-party vehicle that is damaged, but also yours. Hence, a comprehensive plan offers an all-round protection. Damages to your bike can either be due to an accident, or even due to natural disasters and other man-made events. To ensure protection against such perils along with accidental damage, it is best to choose a comprehensive plan. Moreover, theft is one such thing that is covered by a comprehensive policy. Comprehensive plans, in addition to a wider coverage can also be customised using add-on that are optional policy features. However, keep in mind that it impacts the bike insurance price. *
- Own-damage insurance plan
Own damage insurance cover is one part of a comprehensive policy that can be purchased as a standalone product. It is useful for those owners who already have a long-term third-party cover but are seeking insurance coverage for their bike. As the title suggests, such insurance cover is only limited to the damages that are caused to your bike and no third-party coverage is offered under such own-damage policy. So, if you purchase an own-damage cover, you also need to separately have a third party bike insurance to comply the law. *
* Standard T&C Apply
The below table summarises the coverage of different insurance plans –
|Type of Damage||Third-party policy||Comprehensive policy||Own-damage policy|
|Injury to a third person||Yes||Yes||No|
|Death of a third person||Yes||Yes||No|
|Property damage of a third person||Yes||Yes||No|
|Repairs/Damages to the insured vehicle||No||Yes||Yes|
|Theft of insured vehicle||No||Yes||Yes|
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.