Scope of Two Wheeler Insurance

Scope of Two Wheeler Insurance-If you want to ride on public roads, it is mandatory to buy a vehicle insurance plan if you have two wheeler then two-wheeler insurance plan or bike insurance which insures rider and vehicle both.

By buying a third party or liability insurance policy, you can fulfill the obligations. However, it is not mandatory to buy a comprehensive two wheeler insurance plan. You should be aware of the benefits of the third party (or liability) insurance as well as comprehensive insurance plan. After assessing your risk factors, you can subscribe to a suitable plan.

Benefits of Two Wheeler Insurance Policy

• Financial protection – By buying two wheeler insurance, you can minimize financial losses.
• Risk coverage – The unfortunate events that take place on the road will be covered by the insurance policy
• Third-party damage – As you buy an insurance policy the insurance company will pay third-party damages on behalf of you. If there is damage to the other vehicle, property or person, the insurance company will pay the compensation.
• Add-ons – You can subscribe to various kinds of add-ons to get additional benefits from the insurance company.
• Cashless service/repair – The insurance company will offer cashless repair/replacement of spare parts at a garage which is in the network of the insurance company

What is Covered by the Two Wheeler Insurance Policy?

As you buy a two-wheeler insurance plan, you should be aware of the scope and limitations of the policy. The mere possession of an insurance plan will not serve the purpose. Hence, you should know the coverage offered by the insurance for various risk factors.

Types of Two wheeler Insurance Policies

There are two types of bike insurance policies.

• Third-party insurance plan – The plan is mandatory as per the law.
• Comprehensive insurance plan – You can buy comprehensive plan so that all kinds of risk factors are covered by the insurance policy in a very efficient manner.

A. Scope of Third-Party Two Wheeler Insurance Policy

As per the motor vehicle act, the owner of the bike should be insured compulsorily.

• Injury or death of third-party person – If there is injury or death of third-party person and you are involved in the accident, the insurance company will pay the compensation to the third party person.
• Damage to third-party property – If you are involved in an accident and the third-party property is damaged; your insurance company will pay the compensation.
• Damage to the third-party vehicle – If you are involved in an accident and the third party bike is damaged in the accident; the insurance company will pay the compensation to the owner of the third party bike.
• Injury of the rider – If the rider is injured in the accident, the insurance company will not pay compensation. There will not be any claim even though the rider dies in the accident.
• Damage to the insured vehicle – If there is damage of the insured vehicle, the insurance company is not liable for the damage.
  Injury or death of insured owner – The insured owner of the vehicle who suffers an injury or death will get compensation from the insurance company.

A.1 Compensation Paid by the Third Party Two Wheeler Insurance Company

• Death – 100% of the sum assured
• Dismemberment of both limbs or loss of both eyes – 100% of the sum assured
• Loss of one limb and one eye – 100% of the sum assured
• Dismemberment of one limb or one eye – 50% of the sum assured
• Permanent/total disability – 100% of the sum assured

B. Scope of Comprehensive Two Wheeler Insurance Company

The scope of the comprehensive is vast and it is possible to cover various risk factors in a very efficient manner. You can buy a vehicle insurance policy as per the type of vehicle, model of vehicle, age of the vehicle, location, age of the rider and other risk factors.

The comprehensive insurance plan offers all the features of a mandatory third-party vehicle insurance plan plus additional benefits.

B.1 Compensation Paid by the Comprehensive Two Wheeler Insurance Company

1. Natural Calamities

The following natural calamities, which cause damage to the vehicle, will be covered by the insurance policy:

• Fire
• Hurricanes
• Typhoons or storms
• Earthquakes
• Inundations
• Lightning
• Earthquakes
• Floods
• Lightning
• Landslides
• Rockslides
• Frost
• Rain
• Explosions
• Fires
• Self-ignition
• Cyclones
• Man-Made Disasters

Your vehicle may be damaged due to man-made calamity or disaster. Some of the calamities include strikes, collision and other malicious acts.

2. Damage during transportation of vehicle – If the vehicle is damaged during the transportation the insurance company will pay for the loss. The coverage applies through the road, rail, air and water transportation.

3. Theft of vehicle – If the bike is stolen, the insurance company will pay the compensation.

4. Personal accident coverage – The owner-rider of the vehicle, rider of the vehicle and passengers will be covered by the insurance policy.

5. Pillion rider cover – The coverage of the pillion rider will be included by the insurance policy as an add-on subscription.

6. Own damage – All kinds of damages due to man-made and natural disasters will be covered by the insurance policy.

Exclusions of Comprehensive Bike or Two Wheeler Insurance Policy

The following exclusions are applicable for a bike insurance policy:

• Policy expired or not active – If the insurance policy is expired, the insurance company is not liable for damages.
• Wear and tear / aging – The mechanical wear and tear or aging of the vehicle are not covered by the insurance policy.
• Breakdown (mechanical/electrical) – The mechanical or electrical breakdown of the vehicle is not covered by the insurance policy
• Riding the vehicle without driving license – Even though the policy is active, the insurance company is not liable if the bike is driven by a rider without valid driving license
• Riding under the influence of drugs – If the vehicle is driven under the influence of drugs or alcohol, the insurance company will reject the claim
• Wrong usage – The insurance company can reject the claim if the bike is registered for private purpose and being used for commercial purposes.

What are Add-On Covers on two wheeler insurance?

By paying little extra premium, you can get additional benefits from the two wheeler insurance company.

1. Nil depreciation cover – when you buy nil depreciation cover, the insurance company will pay the true value of the spare parts. The insurance company will not deduct the amount towards the depreciation of various automobile parts. The feature is not applicable to the standard insurance policy. Hence, you should subscribe to the nil depreciation by paying additional premium.

2. Engine protection – The life of the vehicle is based on the engine life. By subscribing to the engine protection rider, the engine as well as the gearbox assembly will be covered by the insurance policy.

How to Buy the Best Bike or Two Wheeler Insurance Plan?

After assessing your insurance requirements, you should choose the best insurance plan to cover your bike and third party damages.

1. The selection of the policy – You can go for either third party or comprehensive policy as per the type of two-wheeler. If you are buying an insurance policy for a new or expensive bike, you can buy a comprehensive insurance policy. On the other hand, you can buy a third-party insurance plan to cover your old vehicle.
2. Online policy – By buying an insurance policy from online sources, you can get discount on the premium.
3. Package policy – If you buy two or more insurance policies from the same insurance company, the insurance company will offer discount on the premium.
4. Timely renewal of the policy – The insurance policy should be renewed on or before the due date to get discount on the renewal premium.
5. No-claim bonus – The insurance company will offer discount on the insurance premium if the policy is not claimed in the previous policy year. The NCB will increase with every claim-free year.
6. Installation of anti-theft devices – By installing anti-theft devices, you can enhance the protection of the vehicle. The insurance company will decrease the premium if it is aware of the augmented protection of the bike.
7. Buying add-on covers – You can buy add-on covers as per your needs. You should not subscribe to features, which are not relevant to your bike or location. Thus, you can reduce the premium by customizing the insurance plan.
8. Comparison of insurance plans – You can compare the insurance plans offered by various companies so that you can settle for the best insurance plan.
9. Multi-year insurance plan – By buying an insurance policy for more than one year, you can get discount on the premium.
10. Transfer of insurance policy – If you buy used vehicle, it is possible to transfer the insurance policy from the previous owner so that you will enjoy the benefits of the insurance plan.

Insurance and IDV of Vehicle

IDV (Insured Declared Value) will play an important role in the calculation of the insurance premium. The insurance company will pay compensation for the loss or damage to the vehicle based on the IDV.

Conclusion

Before buying a two wheeler insurance plan, you should assess your risk factors. It is also important to go through the policy wording so that you will subscribe to all the required features and will omit unwanted clauses. By buying an online insurance policy, you can customize features as per your needs and it is possible to buy a policy at a competitive price.

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