Got yourself a new bike, congratulations! This is your ticket to freedom from the hassles of public transport and all the long hours of wait. But have your insured it yet? Apart from registration and the PUC formalities, there is also an insurance policy that you need to purchase when you buy a bike. This comes as a regulatory requirement under the Motor Vehicles Act of 1988.While most two-wheeler owners purchase the policy that is recommended by their vehicle dealerships, it may not be recommended to buy that always. Since the dealer does not know the where you the terrain on which you will ride your bike, or the dangers faced by it when it is parked. So, selecting the right 2 wheeler insurance policy is essential. This article explains what is included in your insurance policy helping you select a plan that you should buy. Let’s have a look –
Coverage based on type of policy
The starting point in knowing what is included in your policy depends on which type of policy you purchase. There are two types of plans that can be bought, one is a third-party cover and the other is a comprehensive policy.
A third party insurance for bike covers the legal liabilities that may arise due to injuries to persons other than the policyholder and the insurer, i.e. third persons. It also covers for property damage of such third-party. Since the scope of this policy is limited to cover such third-party losses only, it is also termed as a liability-only policy.
Comprehensive policies on the other hand are more inclusive as they offer protection for damages to your two-wheeler as well. Third parties aren’t the only ones who face damages during an accident, but you, the policyholder too.
Coverage for natural perils and man-made events
Comprehensive policies have three components bundled together – third-party cover, own damage cover and personal accident cover. These three components together in combination provide coverage for your bike. The third-party cover is the same as liability-only insurance policies while the own damage cover is that safeguards your vehicle against damages. Among the various events that are included, perils of the nature like floods, lightning, earthquakes, thunderstorms and the like are cover. Also, human induced events like strike, riots, explosions, etc. are also covered under the comprehensive policy coverage.
A general insurance policy for your bike with a comprehensive plan covers theft. The financial loss due to such theft can be hefty but your insurance policy acts as a safeguard.
Personal accident coverage
As mentioned above, personal accident cover is the third component in a comprehensive bike insurance policy. Here any injuries to the owner-rider of the bike are covered by the insurer. It pays a lumpsum amount in the event of death or disability to the beneficiaries of the policy.
Limitation on coverage
You need to remember not all is covered under the insurance policy. There are certain limitations to third-party covers as well as comprehensive policies. For instance, third-party property damages are covered only to the extent of ₹7.5 lakhs whereas a comprehensive policy does not insure the damages to the engine.
With all of the above inclusions, make a suitable choice of policy and the necessary add-ons considering your requirement. 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.