The motor insurance market witnessed a significant growth in these past few years, occupying a significant portion of India’s general insurance segment. Of this, the bike insurance policy has a large share considering the number of two-wheelers on road in the country.
Simultaneously, the rising repairing and servicing cost of bikes often take a significant toll on financial health of bike owners. Hence, owners need to choose effective insurance policies from the ones available to keep themselves financially guarded against any unforeseen expenses.
Types of 2-wheeler insurance policy in India
Primarily, bike insurance policy is of three types and individuals need to choose a plan that suits their requirements perfectly.
Here’s a list of insurance plans available right now in India.
- Third-party insurance plan
As per the Motor Vehicles Act 1988, a third-party bike insurance policy is compulsory. This particular two-wheeler insurance policy covers the cost of any damage to a third-party vehicle and also for injuries sustained by the other vehicle’s rider. Such coverage depends on the plan chosen and make and model of a bike to be insured.
However, this insurance plan only covers the cost for any damage made to third-party and not the rider(s) of the bike insured.
- Direct compensation property damage
Popularly known as DCPD insurance plan, this one only covers repair costs of an insured bike but not its rider. Thus, if an accident occurs and the rider of the insured bike gets injured, the treatment cost of the wounded individual would not be covered through this bike insurance policy.
In simple words, this particular insurance plan financially covers the repair cost of a bike’s parts, pre-specified by the insurance provider. It also covers the cost of any damage to insured bike due to natural calamities, fire, theft, etc.
Read the terms and conditions carefully before purchasing this plan.
- Comprehensive plan
Individuals looking for a more inclusive and compact motorcycle insurance plan can opt for a comprehensive one. Top insurance aggregators like Bajaj Finserv extend motor insurance policies that provide maximum coverage including:
- Coverage against own damage caused by any accident.
- Third-party bike insurance coverage in case of any damage caused to the third-party vehicle, property and individuals.
- Personal accident coverage for the rider and co-rider of the insured vehicle.
All these features are encapsulated in a single comprehensive insurance plan for motorcycles. Besides these basic features, it also offers a host of add-ons or rider insurance plans. For instance, Individuals can opt for a zero depreciation cover, pillion rider cover, etc., to enhance the benefits of a standard insurance policy. However, remember that commercial bike insurance plans are different from an individual bike insurance policy.
Following are some of the key features of comprehensive two-wheeler insurance online policy.
- Covers a wide range of network garages.
- Cashless servicing at authorised garages.
- Online purchase and premium calculation facility.
- No Claim bonus.
- Transfer of NCB from any insurance provider.
- Prompt claim procedure
- Up to 100% reimbursement of invoice of certain parts on pre-specified grounds.
However, before purchasing, know the application process for more convenience.
- Mention the details of the bike to be insured. (Registration number, year of purchase, etc.)
- Information about previous insurer (if any).
- Decide the type of bike insurance policy you want to purchase.
- Choose the add-ons.
- Pay the premium online using any preferred transaction mode.
- Keep the payment receipt for future reference.
Irrespective of the plan chosen, individuals also need to consult the insurer and check their credibility before purchasing a bike insurance policy. Also, check the claim process for prompt reimbursement of the sum insured.
Assess the types of plans thoroughly before choosing a policy. Otherwise, you may end up with inadequate coverage, which does not offer enough financial assistance during your times of need.