India’s Motor Vehicle Act, 1998 mandates all two-wheeler owners to have at least third-party insurance. While third-party insurance protects you from third-party liabilities in case of a mishap, it does not cover damages to your two-wheeler. It means you will have to pay for your bike’s repairs from your own pocket despite having a 2-wheeler insurance cover.
To avoid such a situation and enjoy exhaustive coverage, you must opt for comprehensive insurance instead. If you are confused about buying comprehensive bike insurance, then this article is for you. But, before we look at the benefits of comprehensive bike insurance, let us see why third-party insurance may prove inadequate in time of need.
Limitations of Third-party 2-wheeler Insurance
The primary limitation of mandatory third-party insurance is that it solely covers third-party liabilities and expenditures caused due to an accident with your insured bike. The insurance does not cover personal injuries or any damages caused to your bike. Also, any costs incurred as a consequence of the policyholder’s demise due to an accident are not covered by the insurance policy.
What is Comprehensive Bike Insurance Cover?
Unlike third-party insurance, comprehensive 2-wheeler insurance provides far broader coverage. Besides covering third-party liabilities, comprehensive bike insurance protects against losses due to manmade calamities such as theft, vandalism, accidents and natural disasters such as storms, earthquakes, and floods.
Interestingly, a study revealed that approximately 60% of vehicles on Indian roads are uninsured, and two-wheelers form the majority. (Source: General Insurance Council of India)
What Does Comprehensive 2-wheeler Insurance Cover?
Comprehensive bike insurance offers exhaustive coverage. It covers:
- Own damage cost
The insurance provider will cover the repair expenses if your bike sustains accidental damages due to:
- Natural disasters such as floods, landslides, and cyclones
- Fire
- Man-made disasters like vandalism, rioting, and theft
- Collision with another vehicle, property or a person
- Personal accident coverage
Accidents can result in severe injuries—at times, even death. Your comprehensive 2-wheeler insurance promises Personal Accident Cover. It pays for accidental death or disability of the policyholder.
- Third-party liabilities
In case a third party suffers damage or injuries due to an accident with your insured bike, the policy will cover the following:
- Property damage to the third party
- Third-party liability for bodily harm or death
- Any legal costs arising from the accident
- Theft
If your bike gets stolen, your insurance provider will compensate you with the bike’s IDV. You could use this money to purchase a new bike.
What is Not Covered by Comprehensive Insurance?
Some standard exclusions of comprehensive 2-wheeler insurance are:
- Driving without a licence
The insurer can decline the claim if the rider was riding the bike without a valid driver’s licence.
- Abusive use
If you use your bike for unauthorised purposes, the insurance company will not cover the damages caused to your bike.
- Depreciation
Standard comprehensive insurance does not cover the two-wheeler’s standard wear and tear.
- Drunken driving
You will not be allowed to file a claim if you are found to be intoxicated when riding. It can be alcohol or substance abuse.
- Negligence
The insurance does not cover damages due to the rider’s negligence.
- Intentional accident
You cannot file a claim if you intentionally attempt to harm your two-wheeler.
- Expired policy
An expired policy is as good as not having a policy.
Reasons to Opt for Comprehensive Bike Insurance
There are several reasons to choose comprehensive bike insurance over third-party 2-wheeler insurance. Some of them are:
- Ideal insurance for luxury bikes
Owning a high-end luxurious bike necessitates purchasing comprehensive two-wheeler insurance. If you get involved in an accident, a comprehensive plan will protect you against both private and third-party costs. Additionally, you are protected against natural and human-made occurrences.
- Better coverage
Compared to a third-party insurance plan, comprehensive two-wheeler insurance grants you expanded coverage. While safeguarding you against third-party liabilities, this type of insurance also covers personal injuries, fatalities, and bike damage.
- Accessibility to a multi-year policy and all its advantages
You can also choose to go for a multi-year bike insurance policy such as a three-year insurance plan. This way you can avoid worrying about yearly insurance renewals. Multi-year insurance can also fix a specific premium rate for the whole duration of the policy. This safeguards you against paying for any premium hikes that may occur during the policy period.
Additionally, 2-wheeler insurance providers provide premium reductions on multi-year plans, ultimately cutting your insurance expenses.
- No Claim Bonus
If you do not file any insurance claim during the policy period, your insurer will award you with a No Claim Bonus. You get this benefit as a discount on your premium amount at the time of policy renewal. NCB increases with consecutive claim-free years and reaches 50% of the premium amount for five consecutive claim-free years. You can earn a significantly higher NCB with a multi-year comprehensive two-wheeler insurance policy than a one-year comprehensive plan.
Additionally, if you choose to switch your existing plan, the NCB can be transferred to any new comprehensive policy you want to purchase.
- Bag extra benefits
Another reason to purchase a comprehensive bike plan is that it gives you access to other add-ons or riders such as roadside assistance, engine protection, zero depreciation, hospital cash and more.
Also, plenty of insurance providers offer some additional value-added services such as pick-up, drop-off, car towing, housing, and entertainment. Remember, timely premium payments on multi-year insurance plans are often a requirement to avail of these value-added services.
Conclusion
If an insurance policy cannot help you in time of need, then there is no point in investing in one. Getting a policy just because it is mandatory is a sheer waste of money if it does not meet your needs. In such situations, comprehensive 2-wheeler insurance will be far more helpful. So, what are you waiting for? Protect your bike with robust comprehensive bike insurance today.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.