Two wheeler insurance, also known as bike insurance, is an agreement between the insurance company and the bike owner wherein the insurer covers the cost of damages caused to a third party and in some cases even the bike owner and his bike. A two wheeler insurance policy protects the bike owner against unforeseen events such as theft, natural disasters, man made calamities and even damages caused to third person or property. As per the motor vehicles act, 1988, it is mandatory for every vehicle owner to purchase a third party insurance to get protection against death, disability or damages caused to third person or property. Buying comprehensive two wheeler insurance is a matter of choice depending on the requirements of the bike owner.
A comprehensive bike insurance policy gives complete coverage by paying your financial liabilities that you may incur towards a third party and by providing compensation for expenses arising due to own-damages sustained by your bike. This policy shields your bike against damages it sustains due to an accident, fire, theft, man-made disasters, natural calamities, self-ignition, explosion, and so on. You can also enhance its coverage by paying an additional premium to purchase add-on covers like zero depreciation cover, roadside assistance cover, engine cover, etc.
In India, a third-party bike insurance plan is a compulsory requirement to ride a bike. It is also known as liability-only policy which covers bodily injuries, temporary or permanent disability, and death of the third party person due to an accident or a mishap with the involvement of the insured’s bike. This motorcycle or scooter insurance policy also covers the property damage expenses sustained by the third party up to Rs. 1 Lakh, but does not cover damages incurred by the insured’s bike or the insured person.
The standalone own-damage bike insurance policy gives coverage for the own-damages sustained by the insured bike due to an accident, theft, fire, natural disaster and man-made calamity. A standalone own-damage policy provides flexibility to policyholders for choosing an insurance company of their choice. The policyholders can buy a third-party policy and own-damage policy either from the same insurer or a different one. An insured individual can expand the coverage of a own-damage insurance policy by buying add-on covers.