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Important Facts about Two-Wheeler Insurance You Wish You Knew

By Finserv MARKETS - Jul 25,2019
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Important Facts about Two-Wheeler Insurance You Wish You Knew

Statistics say that over 1200 road accidents happen in India every day. Going by these alarming numbers, buying a two-wheeler insurance for your scooter or bike makes sense to avert future financial losses arising out of dreadful road accidents. However, to ensure that you get the best insurance deal in the market, make sure you are clear about the following important facts about two-wheeler insurances-

Types of Coverage

When you approach an insurance provider, you might be forced to buy whichever type of insurance policy is available with the provider. However, it is important that you know about the different types of two-wheeler insurance policies offered in the market.

Primarily, there are two types of bike insurance policies that you can buy-

  • Third-Party Two Wheeler Insurance
  • Comprehensive Two Wheeler Insurance

Third-Party Two Wheeler Insurance

A Third-Party Two Wheeler Insurance only offers coverage for liabilities arising out of damages caused by your vehicle to a third party. These damages may be of different nature such as-physical damage to the aggrieved party, damages to the third party’s property, or damages to the third party’s vehicle.

Comprehensive Two-Wheeler Insurance

A Comprehensive Two-Wheeler Insurance is an all-encompassing insurance policy. It offers coverage not only for third-party legalities but also for damages incurred by your vehicle during accidents, collisions, or natural disasters. Because of the added benefits, the premiums offered for comprehensive insurance are slightly higher than the premium offered for a third-party two-wheeler insurance.

Supreme Court’s Mandate On Third-Party Two Wheeler Insurance

According to a recent ruling by the Supreme Court, the IRDA (Insurance Regulatory and Development Authority of India) has asked all the general insurance companies in India to offer long-term third-party insurance to all vehicles sold after September 1, 2018. This move is taken with an effort to increase the number of insured vehicles on the road and offer long-term third-party coverage for them. As per this mandate, a bike owner is eligible for 5-year term on his/her two-wheeler insurance. Thus, if you have bought a two-wheeler after the said date, make sure you enquire about bike insurance and their long-term extension with your insurance provider.

Inclusions and Exclusions in Two-Wheeler Insurance

Whenever you apply for an online bike insurance, make sure you go through the inclusions and exclusions of your insurance policy. These inclusions and exclusions may vary depending on the type of insurance coverage you choose for your two-wheeler.

  • Inclusions in Two-Wheeler Insurance

The major inclusions in a Third-Party Two Wheeler Insurance are-

  1. Cost of treatment to a third-party in case of physical injuries
  2. Reimbursement for damages caused to a third-party property
  3. Damages caused to the third-party vehicle

Note: The amount that needs to be given as compensation to a third party is decided by the Motor Tribunal Court. In case, the compensation is more than the coverage offered by your insurance policy, you will have to pay the extra amount from your own pocket.

Apart from the above-mentioned inclusions, a Comprehensive Two-Wheeler insurance plan covers

  1. Damages due to theft or loss of your vehicle
  2. Damages caused due to natural and man-made disasters
  3. Damages due to acts of vandalism, riots, or due to any purposeful malicious intent
  4. Additional medical coverage for the person riding pillion
  5. Repair and replacement costs for your two-wheeler
  • Exclusions for Two-Wheeler Insurance

Your bike insurance will not offer coverage for the following-

  1. Damages caused to the vehicle when the rider is under influence of any intoxicants
  2. Normal wear and tear
  3. Damages due to electrical or mechanical breakdown

No Claim Bonus

Before you buy bike insurance online, make sure you ask your insurance provider about the No Claim Bonus (NCB) facility. An NCB facility is a reward offered by certain two-wheeler insurance providers in the form of discounts on the premiums, at the time of policy renewal. A person can claim an NCB when he/she does not make a single claim during the two-wheeler insurance policy term

Parting Thoughts

It is vital that you choose the right insurance plan for your two-wheeler to enjoy a relaxed driving experience. The long-term benefits of a two-wheeler insurance cannot be ignored. In case of any unfortunate incidents involving your bike, a two-wheeler insurance can definitely help offer legal and financial respite. To know more about the advantages of buying a two-wheeler insurance, get in touch with us at Bajaj Finserv MARKETS. The Bajaj Two-Wheeler Insurance Plans available at Bajaj Finserv MARKETS starts at a premium as low as Rs. 1389 per year. Apply for Bajaj Allianz Bike Insurance today and get attractive benefits such as instant claim settlement wallets, cash-free servicing at 4000+ network garages and round the clock assistance!

Bajaj Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522