Finance

Varieties of Motorcycle Insurance Plans to Explore in India

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A motorcycle is a basic transport medium that most of us have in our homes for commuting to places in nearby areas. While this makes our travelling easy and convenient, we must insure it as well.

There are several kinds of insurance for two-wheelers differentiated as per the coverage and facilities. One of the basic motorcycle insurance is mandated under the country’s rules and regulations.

Since we are required to have it, it is important to have a detailed understanding of all types of motorbike insurance, so that you can make an informed decision while choosing from them.

Here, it is necessary to understand the different types of insurance plans to avoid blindly buying a cheap bike insurance plan that fails to provide financial coverage when needed.

Let us delve into the varieties of motorcycle Insurance plans that are available in India.

 Primary Types of Bike Insurance Plans

There are three major 2 wheeler insurance types available for one to opt from. Each of them has its characteristics and coverage. All of their provisions and policies are detailed as follows:

 Third Party Liability Coverage

Whenever we ride a motorcycle it is important to ensure the safety of ourselves and those on the roads. A third party liability coverage covers the loss caused to another person or his motorcycle from his motorcycle. It protects you from the loss caused if you are held accountable for the other party’s damage.

In India, this bike insurance policy is mandated by the Motor Vehicles Act, of 1988. For every bike owner, it is essential to have his/her bike insured with third-party liability coverage. The financial burden of loss caused to others will be reimbursed or paid by the insurance provider under this insurance policy.

 Own Damage Motorcycle Insurance Coverage

Own damage insurance policy also called a standalone insurance for bikes in India is a type of Motorcycle coverage in which any harm caused to self or bike is financially ensured. Damages caused due to accidental events, burglary, theft, natural calamities, fire, attacks, etc., are all covered in standalone motorcycle insurance coverage. It was introduced in India on September 01, 2019, when IRDAI authorised it.

 Comprehensive Motorcycle Insurance

Comprehensive motorcycle insurance includes both third-party and own damage characteristics. It provides full coverage for loss caused to a third person, his/her vehicle, or the owner’s vehicle in case of any mishap.

Theft, vandalism, and natural calamities like earthquakes, floods, fire, accident, terror, public outrage, etc are covered under comprehensive insurance coverage.

It is an extensive policy, insurance companies like Tata AIG provide the facility to add on the insurance drivers as per one’s convenience and budget. Since this safeguards several acts of loss, it is the best choice to ensure overall motorcycle protection.

Comparison Summary Between the Various Types of Bike Insurance

The below table summarises the difference between the three bike insurance policy types in India:

Scope Third-Party Insurance Policy Own Damage/ Standalone Insurance Policy  Comprehensive Insurance Policy
Coverage Covers the loss caused to a third party due to the owner’s motor vehicle. Reimburses the loss caused to own due to any accident or uncertainty. Provide for loss caused to both third parties and self-insured bikes.
Legality Mandatory for every bike owner as per the Motor Vehicle Act. Optional, on the choice of the vehicle owner. Optional, on the choice of the vehicle owner.
Rates Premium rates are fixed annually by IRDAI Premium rates are fixed by the insurer Premium rates are combined with those specified by IRDAI plus those specified by the insurer.
Insurance Declared Value
(IDV)
IDV of the bike is not that relevant to calculate the sum assured by insurance companies To determine the sum assured for the motorcycle damage, iDV is the primary factor. IDV of the two-wheeler is an important attribute to determine the own damage cover within the policy.
Add-ons Add-ons cannot be selected, it is as specified on its own. The owner can select add-ons according to his requirements. A vast range of insurance drivers can be selected to add on the coverage of a vehicle.
Cost Less or Nominal cost. Little higher cost varies as per insurance provider and their services Certainly higher cost up to the extent of own damage coverage.

 Additional Riders

With an Insurance plan, one can also select additional insurance drivers like personal accident coverage or zero depreciation. According to need, a motorcyclist can tailor their bike insurance plan accordingly with the help of an insurance provider or while buying the insurance online.

 Conclusion

Motorcycle insurance is a significant decision for your two-wheeler. While opting for it, please ensure the credibility and rating of the insurance provider is satisfactory. Since you are now aware of various kinds of insurance policies available for motorcycles, it would be an easy task to select the best that suits you. Have a happy purchase.

Carl Gerald

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