Types Of Bike Insurance

Posted on Mar, 2020
What are the different types of bike insurance?
A two-wheeler is one of the most preferred travelling options in India. It offers excellent mileage, and its compact size makes it easy to navigate heavy traffic during peak hours. But it is also considered to be a risky due to its small size. As such, bike owners need to take adequate measures to ensure they are always safe on the road. Apart from wearing a helmet and other necessary gears, bike owners must invest in a good bike insurance policy. There are two different types of bike insurance policies that bike owners can choose from. They are as under:

1. Third-party bike insurance policy

The first type of bike insurance policy available in India is the third-party bike insurance policy. Also known as the limited liability policy, third party insurance is the most common type of insurance that most people buy in India. The Government of India has made it mandatory for all vehicle owners, to purchase a third-party policy per the Motor Vehicle Act of 1988. As is apparent from the terms ‘limited liability’ and ‘third party’, this insurance policy mainly covers the policyholder against the damages incurred by third party individuals injured in an accident. It also covers the policyholder against the cost of repairing or replacing vehicle parts in case the accident leads to any damage to the third party’s vehicle.

An important point to note is that the third-party policy is only designed to cover the third party and their vehicle and not the policyholder. The insurance premiums for third party policies are typically lower, making it an affordable option. However, this type of bike insurance may not cover many aspects that you may be looking for.

2. Comprehensive insurance policy

If you are looking for an insurance policy that offers maximum coverage, then you should invest in the second type of 2 wheeler insurance – the comprehensive cover bike insurance policy. An all-encompassing insurance policy, the comprehensive cover policy protects both the policyholder and third-party individuals in case of accidents. The policy covers you against various roadside scenarios and also protects your liabilities in accidents. Moreover, it covers you against several natural calamities leading to the damage or loss of vehicle, including floods, storms, tsunamis, earthquakes, and so on. The policy also offers coverage against human-made disasters such as vandalism or theft of the vehicle or its destruction in riots, street fights, terroristic activities, strikes, etc.

A significant advantage of investing in this type of motorbike insurance is that you can even customise it by adding different kinds of additional riders. These include roadside assistance cover, invoice protection cover, zero depreciation cover, accident cover, etc. While the premium for comprehensive insurance may be slightly higher, it is worth the investment because of the coverage it offers.

So, if you are considering buying a bike anytime soon, you should consider investing in the second type of bike insurance policy – the comprehensive policy. You can consult your insurance broker to help you customise a policy as per your needs. At PINC Insurance, our dedicated team can help you invest in a policy that fits your requirements and your budget.