A bike or two-wheeler insurance helps protect the policyholder from monetary losses caused by their vehicle getting into a road accident. It is mandated by law (Motor Tariff 2002) that two-wheeler owners should have third-party bike insurance at the least.
Types of two-wheeler insurance
Based on coverage, two-wheeler insurance is categorized into 3 primary plans, which are:
Third-party insurance plan: Third-party or liability-only two-wheeler insurance plans are a basic form of insurance cover. They protect the policyholder from third-party liabilities such as injuries or death of a third party and damage of property caused by a third party. However, it does not cover damages caused by the policyholder’s two-wheeler.
Standalone own damage insurance plan: This plan covers damages caused by the policyholder’s two-wheeler in an accident. It does not include coverage; hence, it is best combined with the legally mandatory third-party insurance plan.
Comprehensive two-wheeler insurance plan: This plan is also referred to as the package two-wheeler insurance. It covers all forms of damages caused by a policyholder’s two-wheeler in an accident, including third-party liabilities and damages suffered by the policyholder. In simplest terms, it is a combination of third-party and standalone own damage insurance plans.
Two-wheeler owners can also consider purchasing add-on covers with their standalone and comprehensive plans.
Benefits of two-wheeler insurance
- Coverage for natural disasters and road accidents
- Coverage for legal liabilities
- Safe driving and good maintenance bonuses
- Cashless claims at affiliated garages
- Long term plans with fixed premiums for entire term
Factors to consider and when choosing two-wheeler insurance
- Premium amount
- Policy coverage
- Add-on coverage
- Discounts offered
- Terms and conditions
Need more information about two-wheeler insurance to determine which plan is best for you? Login, sign up or call to book a free consultation with your friend and financial advisor, DailyFinserv, today.
