What is two-wheeler insurance?
Two-wheeler insurance is an insurance policy which protects you, your two-wheeler and an affected third party from financial losses arising out of an unforeseen incident.
As per the Motor vehicle act , it is mandatory in India to have at least a third party two-wheeler insurance to drive vehicle on road. Having this valid mandatory two-wheeler insurance prevents you from the hefty fines as well.
There are several optional covers to choose from in a two-wheeler insurance policy. These are zero depreciation cover.
Type of two-wheeler insurance in India
You can choose from different types of two-wheeler insurance.
1) Comprehensive cover
Comprehensive two-wheeler insurance includes the third-party liability and damages caused to the two-wheeler and the owner of the two-wheeler. Comprehensive two-wheeler insurance can be opted with various add-ons such as Zero depreciation cover. These add-ons are very popular options as these provide a complete protection from financial losses.
2) Third party two-wheeler insurance
Third party two-wheeler insurance covers the third-party liability which arises in the event of two-wheeler accident. In this type of policy only the death, disability and injury liability of third party is covered. Third party cover is mandatory in India while driving the vehicle as per Motor Vehicle Act. In this way, this cover only protects you from the financial liability towards third party.
What is covered in Two-wheeler insurance policy?
As per the standard two-wheeler insurance policy, following cause of losses covered.
- Damages or loss to the two-wheeler that arises through accidents.
- Covers the losses of incurred due to the theft of the two-wheeler.
- Damages or losses due the accidental fire.
- Damages or losses that arise through the natural calamities such as floods, cyclones etc.
- Personal accident cover
- Third party Losses such as damages to the third-party vehicle or property
What is not covered in two-wheeler insurance policy?
As per the standard two-wheeler insurance policy, following cause of losses not covered.
- Damages or losses arising due to war and similar conditions.
- Damages that arise when driving under the influence of alcohol.
- Damages that arise when driving without a valid license.
- Damages that arise when two-wheeler insurance policy is not active.
- Regular wear and tear.
What are two-wheeler insurance add-ons?
Add-ons in the comprehensive two-wheeler insurance are the extra safeguards for your private two-wheeler by paying the extra premium.
Following are some of two-wheeler insurance add-ons.
1) Zero Depreciation cover
Zero depreciation cover also known as Nil Depreciation or Bumper to Bumper two-wheeler insurance policy is a two-wheeler insurance policy which protects you from claim on deprecation value basis. It means that in the event of two-wheeler accident, the comprehensive two-wheeler insurance only covers the depreciated value of the two-wheeler but when you opt for zero depreciation cover, it provides the full coverage irrespective of depreciation. Most of the insurance companies provide zero depreciation cover till the five years.
How to select the best bike insurance for your two-wheeler?
Factors that must be considered during buying the two-wheeler insurance policy.
- Type of Policy: – If you choose third party insurance, your premiums will be quite affordable. Whereas comprehensive plans can be little costly.
- IDV of Vehicle: – IDV of the two-wheeler directly affects the premium of two-wheeler insurance. This also affects the claim amount.
- Add-ons: – All add-ons have their own prices and coverage therefore; the number of add-ons significantly affect the cost of two-wheeler insurance policy.