Thursday 25 July 2024
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Which Type of Two Wheeler Policy is the best?

Which Type of Two Wheeler Policy is the best?

About 60% two-wheelers on the Indian roads are not insured. Due to lack of bike insurance, an accident renders the vehicle owner without any cover and he/ she will have to bear all the hospital expenses or bike damages on their own, which can be very expensive. That is why it is necessary to buy two wheeler insurance.

The two wheeler insurance covers you against damages that your bike or scooter may incur due to any unforeseen events. A two wheeler insurance policy helps in reducing the burden of exceptionally high costs that may arise due to damages caused to your bike by the occurrence of an accident, natural disaster and so on.

Under the Motor Vehicles Act of 1988, all vehicle owners must have at least a third party insurance cover.

There are two types of two wheeler insurance:

Third-party insurance policy – This policy is made compulsory by the Indian government for all the vehicles plying on the road. This policy covers loss and bodily injury because of the accident caused to the third party.

Comprehensive policy – It covers risks caused by damage or theft of own two-wheeler as well as damage repair costs for the third party.

Comparison between Third party and Comprehensive insurance

Third Party Comprehensive
Includes loss or damage to third party individual or property vehicle Includes cover for third party property or individual as well as personal accident cover
Lesser Premium Higher Premium as compared to Third party cover for same vehicle
Covers injuries/ death to Third parties and accidental Third party property damage due to Insured vehicle Theft, vandalism, fire, natural calamities, damage caused due to hitting an animal, glass damage, floodwater

Looking at the above comparison, you may be thinking that purchasing a two wheeler insurance third party policy may be a cheaper option but it will not provide you with a complete cover. Many among us would like to have our motorbikes completely covered, even for a single scratch. However, what will happen if there is a severe accident that leaves your vehicle with extensive damages and also ends up causing damage to other vehicles, property or people? In such cases, a third-party insurance plan will only cover the damage caused to the third-party. However, it will not cover the extensive damages caused to your motorbike. Thus, you will have to bear the brunt of repair bills all by yourself.

Third party insurance for bike will suffice if the riding conditions are safe. Being a mandate by law, it will only help you during traffic police checks. However, a comprehensive cover is highly recommended as it offers both, own vehicle and third-party cover, thereby offering financial cover after any kind of mishaps to the bike.

Considering the steady rise in road accidents in India, owing to multiple factors, Comprehensive insurance is recommended for covering all possible liabilities and expenses after an unfortunate event. As the name suggests, it offers overall protection against damages to your bike, in case of any accident or collision.

Therefore, it better to be a smart rider to compare policies and their quotes using a two wheeler insurance premium calculator and buy a plan that addresses all your requirements and meets your budget.