What Are the Types Of Two-Wheeler Insurance In India?

In India, purchasing two-wheeler insurance is mandatory by law. The insurance is vital to get financial protection against the damages that may occur due to accident. The type of cover you get depends on the type of insurance plan you choose.

Today, insurance companies in India offer different insurance plan to suit the varying needs of the people. If you are looking to buy an insurance cover for your two-wheeler, you must compare the policies from different insurance companies to know the inclusions and exclusions. 

Why is it essential to purchase a good two-wheeler insurance plan?

You must not buy two-wheeler insurance because it is a legal obligation. You must purchase insurance for the various benefits it offers like protection against the damages to the vehicle and injuries to the rider — other vital reasons why you must buy insurance for your two-wheeler. 

1. Reduces financial stress –

If you own a two-wheeler, you would surely want to ensure that your prized possession is protected against all risks. If your bike gets damaged or stolen, it can not only be emotionally stressful but also can cause financial loss. An insurance cover can help you take care of the financial liability as the insurer compensates for the damages to the vehicle and treatment cost of the injured. 

2. Get personal accident cover –

If you have a two-wheeler insurance plan, you can get a cover if you suffer permanent disability. In case of death, the insurance company pays compensation (almost equal to the sum assured) to the appointed nominee. 

3. Get legal protection –

As discussed earlier, buying a two-wheeler is legally mandatory in India. Thus, if there is theft, loss or damage to your vehicle, insurance saves you from facing financial or legal trouble.  

If you’re looking for cover specific two-wheeler insurance, you will come across various insurance places offered by the companies.

Types of two-wheeler insurance based on coverage

In India, two-wheeler insurance policy types are Third-party liability insurance and comprehensive insurance.  

1. Third-party liability insurance –

Third-party liability insurance offers a basic cover; it protects against damages caused to the third-party bodily injuries and damages to their vehicle.

2. Comprehensive insurance –

A comprehensive two-wheeler insurance policy, covers damage caused to third-party as well as own damage. Own damage incidents could be natural calamities, burglary, theft, riots or terrorist activity or damage caused during travel. The comprehensive two-wheeler policy does not offer protection if there is a loss of personal belongings, accidental loss or damage to the vehicle if you’re under the influence of alcohol or drugs.

Common add-ons in two-wheeler insurance

• Roadside assistance cover:

If your bike gets stuck in the middle of nowhere due to mechanical problem or empty fuel tank, etc. you can avail roadside assistance and get paid for service in return.

• Cover for loss / theft of key:

There may be situations wherein your keys get stolen or it may get replaced, the add-on cover for key replacement will help you immediately. The cost of replacement key will be incurred by the insurer.

• Zero depreciation:

You are entitled to receive compensation for bike parts that may get damaged due an accident.

With so many options available, choose the right insurance cover can sometimes be challenging. It is therefore vital that you thoroughly compare the two-wheeler plans available in the market, as it will help you get sufficient protection, and save money.