To have a suitable insurance plan for your bike is necessary as it provides you with financial coverage in the event of an accident. Also, buying third-party liability and personal accident cover is mandatory as per the Motor Vehicles Act, 1988, and the Indian Motor Tariff, 2002. Driving without valid insurance documents leads to hefty penalties and suspension of the license as well as the vehicle.
Two-wheeler insurance is mandatory
Owners must buy insurance for all their vehicles plying on Indian roads. If someone causes damage to other’s vehicle, property, or life, and the driver responsible for the accident dies in the crash, then there would not be anyone left to answer the victim and it might expose them to a financial crisis.
To avoid incidents like these, the government has made it compulsory for every vehicle owner to buy insurance. The driver who is responsible for the accident will have to pay for the expenses that the third-party will incur in either hospital bills or vehicle repair. Having a third-party liability coverage will be useful if the owner of the vehicle is not financially secure to bear the losses of the victim.
How to buy the best bike insurance plan for you?
Opt for an insurance plan that fulfils your expectations and fits in your budget. The cheapest option would be going for a third-party cover. However, if you can spend more to receive more benefits, then go for the comprehensive coverage.
A two wheeler insurance 3rd party policy will save you from the legal liabilities that would arise if your vehicle gets involved in an accident and causes damage to the third-party’s property or life. Keep in mind, however, that it won’t compensate damages done to your bike. For this, you need to purchase an own damage (OD) add-on that will cover the damages sustained by your vehicle in the accident.
On the other hand, comprehensive cover will offer you enhanced protection. It will even cover damages caused to your bike along with the third-party liability. Although it ranges on the expensive side, it is a good choice for new bike-owners.
Let us take a look at the benefits & exclusions of third-party as well as comprehensive plans:
Benefits of a third-party insurance plan:
If the third-party sustains any bodily injuries in a vehicular accident, your legal liabilities would be covered under this plan.
Damage caused to third-party property is also covered. You can even receive a compensation for the losses claimed by the victim.
The Motor Tribunal Court decides the amount of compensation that is provided to victims in the case of accidental death. You would not have to pay for anything from your own pockets.
Exclusions of a third-party plan:
Pre-existing damage will be excluded from coverage under the third-party plan. For these, you would need to bear all the repair expenses yourself.
Third-party liability does not cover damage sustained by your vehicle in an accident unless you have an own damage (OD) add-on bundled with your policy.
Go through the policy wording of general insurance plans to get a detailed understanding of what is excluded so you can make successful claims.
Benefits of a comprehensive plan:
Damages caused to your vehicle other than accidental are also covered. There are cases where damage can happen even if your vehicle was not involved in an accident. This would be covered under the plan as well.
Any third-party liability that arises from an accident is also covered. Damages caused to your vehicle during the accident will also be covered by the policy.
Exclusions of a comprehensive plan:
Coverage will only be offered if you are driving with a valid license issued by the local transport authority. If you get involved in an accident and do not have a valid license, the insurance company would reject the claim.
Similarly, if the driver is found to be under the influence of alcohol or drugs during an accident, then the claim will be rejected.
A comprehensive insurance plan comes with a few additional covers, such as:
Roadside assistance cover if your vehicle breaks down in the middle of nowhere. You can easily get it towed and repaired at the nearest service station.
Also, note that these covers are optional and you would have to pay extra money to avail them.
Now that you know what’s covered and what’s not under third-party and comprehensive insurance bike insurance plans, you would be able to make an informed choice.