Different types of two-wheeler insurance plans

Whenever anybody plans to buy a vehicle, the person expects it to last for a specific period. A lot of investment and planning is involved in choosing the appropriate type, model, and size of a vehicle. It should meet everybody’s requirements. Every person should feel comfortable and satisfied, whether a rider or pillion.

Two wheeler insurance covers most of the expenses caused by accidents or damage by natural calamities. It is essential to choose the appropriate plan and premium for meeting your expectations under one roof. Since the risk of accidents is higher for bikes, insurance coverage helps compensate for the loss or damage caused along with the hospital expense.

There are two types of insurance plans:

  1. Third-party insurance plan:

As the name suggests, third-party insurance for bike safeguards the rider against all third-party obligations that may arise owing to accidental damage to the property belonging to a third party. It may include a person or property, but the insurance covers all the liabilities towards injuries or death caused by road accidents. According to the Indian Motor Vehicle Act, 1988, all bike and scooter owners should compulsorily have this insurance if they are using the vehicle anywhere in the country. Those who do not obey the rule pay penalty.

  1. Comprehensive insurance plan:

This plan protects the rider against any personal damage caused to the vehicle, in addition to the third-party legal liabilities. It shields the bike from fire, natural calamities, human-made disasters, theft, accidents, and other related tragedies. A personal accident cover is also available in case of riders sustaining accidental injuries while they are riding on the road.

Add-on covers for the policy

Two-wheeler insurance third party has add-on covers which are an addition to enhance the policy coverage on paying extra premium. Some of them are:

  1. No Claim Bonus (NCB):

NCB is applicable only if the insured has not made any claims within the policy term. It enables retention of the No Claim Bonus, giving discount during renewals, although the purchase is made during the policy tenure.

  1. Daily allowance benefit:

The insurer provides a daily allowance for travel when the vehicle of the insured is under repair and maintenance at the garage.

  1. Return to invoice:

At the time of total loss, the insurer pays an Insured Declared Value (IDV) for the bike. The return to invoice facility covers the on-road price of the bike, including tax and registration, for getting the purchase value as the claim amount.

Two wheeler insurance also includes zero depreciation cover, emergency assistance cover, helmet cover, and EMI protection.

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Author: Chakraborty

Dr Chakrabarty is the Chief Innovation Officer of IntuiComp TeraScience. Earlier she was Assistant Professor of Delhi University, a QS ranked university in India. Before that she has held research positions in IIT Mumbai, IIT Chennai and IISc Bangalore. She holds 2 patents and over 20 research publications in her name which are highly cited. Her area of research is in smart technologies, integrated devices and communications. She also has a penchant for blogging and is an editor of Business Fundas.