Two-wheeler insurance is a type of insurance that provides financial protection to the bike owner in case of an accident or theft. It usually covers the cost of repairs and replacement parts for the bike, as well as third-party and other expenses.
Due to the increasing number of two-wheelers on the road, the likelihood of an accident has increased. It is why it’s essential to have a good insurance policy. Since the 1988 Motor Vehicle Act requires all motorcycles to carry at least a basic insurance policy, the owner must have one.
Two-Wheeler Insurance Plans
In India, there are various types of bike insurance plans. There are three main types of these plans.
- Third-party insurance: A bike is required to be insured for any liability it might cause to third parties, such as those who suffer damages or losses from an accident involving the insured bike. This type of insurance plan is referred to as third-party bike insurance. If the insured bike is found at fault in an accident, the third-party vehicle’s damages and loss of life can be reimbursed.
- Standalone bike insurance: It is a type of insurance that provides financial protection against the damages caused by various types of accidents and man-made disasters. It can cover theft, natural calamities, and total damage to the bike but does not provide third-party liability coverage. This type of insurance can only be bought with a third-party liability insurance policy.
- Comprehensive two-wheeler insurance is designed to provide comprehensive coverage for the insured bike and its owner. It also includes financial and legal liability coverage for the other party. This type of insurance is ideal for people worried about their financial and legal liability in case of an accident.
One of the most critical factors you should consider when choosing a bike insurance policy is the protection it provides against the damages caused to your vehicle. Paisa Bytes provides you with the most reliable platform to compare the best insurance policies. You can also choose from multiple other plans designed to meet your specific requirements.
There are additionally various add-ons that can be added to your existing bike insurance policy. These can help you get the best possible insurance coverage for your bike.
Two-Wheeler Insurance Benefits
Two-wheeler insurance can also be beneficial in certain situations.
- It is a necessary document: If you don’t carry this type of insurance, you could get fined and even get in trouble with the law. The insurance policies will help avoid legal complications while on the road.
- Accident covers: Having a third-party insurance policy can provide financial protection against damage to a third-party vehicle or person caused to your bike. You could face severe penalties and fines if you don’t have an active third-party insurance policy.
- Protection against theft: While it could be an emotionally distressing event, the financial implications of vehicle theft or severe damage are even more painful. With a two-wheeler insurance policy, you can get covered for the cost of replacing or repairing your vehicle without having to spend a lot of money on repairs and replacements.
- Protection against natural calamities: You can protect your two-wheeler against various types of natural disasters such as floods, storms, and tornadoes with a financial plan to cover your vehicle against these damages. Also, it can provide you with protection against vandalism.
- Provide accident cover: While riding your bike, if you get involved in a road accident, your two-wheeler insurance can cover the various types of injuries that you might have suffered.
Two-Wheeler Insurance Premium
The premium you pay for a bike insurance policy is one of the essential factors you need to consider when choosing a policy. The premium to be paid varies depending on the service providers. Starting as low as Rs. 2 the premium can go up to several thousand.
Several factors can affect the premium, which includes:
- The type of insurance policy
- The condition and model of the bike
- The driver’s record and vehicle evaluation record
- The market value of the bike after depreciation
- The add-on covers are linked to the policy
- The modifications on the vehicle
The premium of two-wheeler insurance is computed based on various factors such as the declared value of the vehicle, its cubic capacity, the age of the vehicle, and the Zone of registration. Third-party insurance policies are set according to the guidelines of the IRDAI. On the other hand, comprehensive and stand-alone insurance premiums are decided by the insurance firms.
Eligibility & Documents to Buy a Two-Wheeler Insurance Plan
Any Indian citizen owning a two-wheeler must maintain an insurance policy for their vehicle. Without the insurance, the bike cannot be used on the Indian roads, and if done so, it will lead to legal complications.
The buyer should have a valid photo ID proof, such as a driving license, PAN Card, Aadhar Card, or Passport size photo. Proof of residence should also be provided. If the documents are not available, an income certificate should be submitted.
Besides these, other documents, such as a bill for electricity and a house tax receipt, are also required to be submitted.
Copy of the rent agreement and the electricity bill. Also, a letter from the employer stating the details of the tenant’s temporary residence should be provided.