Do you own a two-wheeler? If yes then you must also own a two-wheeler insurance policy. As per law, it is necessary to have a valid two-wheeler insurance policy on all two-wheelers. That is why every two-wheeler has an insurance policy attached to it. When it comes to two-wheeler insurance, there are two types of policies available in the market. Let us understand these types and the coverage each one offers :
Third party liability only policy
According to the regulations of the Motor Vehicles Act 1988, your two-wheeler must have a third party liability policy. This policy covers :
Financial liabilities faced when a third party dies or is injured due to an accident involving your two-wheeler.
Financial liabilities faced when your two-wheeler damages any third party property.
Third party in this context means any individual apart from you and your bike. These policies do not cover any damages faced by your bike. The premiums are very low. They depend on the engine capacity of your two-wheeler and are fixed by the Insurance Regulatory and Development Authority (IRDA).
Comprehensive package policy
As the name suggests, this policy provides a comprehensive scope of coverage. It also covers damages faced by your bike and pays for the repair costs incurred in repairing the damages. Coverage under a comprehensive package policy includes :
Financial liabilities faced for causing death or injury to a third party and damage to a third party property.
Damages faced by the two-wheeler due to man-made causes like theft, fire, self-explosion, riots, etc.
Damages faced due to natural calamities like floods, earthquakes, typhoons, hurricanes, etc.
Damages sustained by the two-wheeler when it is in transit by road, air or water.
Personal accident cover for the owner/driver of the two-wheeler which compensates against accidental deaths and disablements.
Thus, a comprehensive package plan covers both third party liability as well as damages faced by the two-wheeler. The premiums are, obviously, higher. The premium comprises of the third party premium and own damage premium. While the third party premium is fixed by the IRDA, own damage premium depends on the Insured Declared Value (IDV) of the two-wheeler.
Besides the above-mentioned coverage features, a comprehensive package policy offers many optional coverage features too. You can opt for these add-ons by paying an additional premium and increase the scope of coverage. The popular add-ons include the following :
Zero depreciation cover
Your two-wheeler's value depreciates with age. As such, when you make a claim, you get settlement for the depreciated value of the parts repaired. With a zero depreciation cover this depreciation is ignored in claim settlement. You get the full value of the parts repaired or replaced.
When you don't make a claim you earn a no claim discount which reduces the renewal premium. This discount accumulates every year when no claim is made. However, a single claim nullifies the discount. NCB protect helps in protecting your earned discounts even when you make a claim.
This add-on provides you 24*7 assistance in case your two-wheeler breaks down in the middle of the road.
This add-on covers the cost of consumables used in repairing your two-wheeler.
Go for comprehensive package two-wheeler insurance policies so that you can enjoy an all-inclusive coverage. You should also choose add-ons and enhance your two-wheeler coverage. A two-wheeler insurance policy is mandatory and you should buy a comprehensive plan for a better coverage experience.