Are you an avid biker who enjoys tearing up the backroads on a lazy Sunday afternoon, or someone who uses a two-wheeler as a primary mode of commuting? Well, the biking community in India is extremely vast and encompasses a wide range of people and motorcycles alike.
Everything from an extremely high-performance Kawasaki Ninja H2 to a regular commuter motorcycle, everything shares the road, and they are prone to risks. Something that enables each and every two-wheeler on the Indian roads to curtail their risks to a very great extent is two-wheeler insurance policies.
In India, it is a legal requirement to opt for an insurance cover, especially a third-party bike insurance cover at the very least. Today, we will take a look at the different types of bike insurance policies that are available on the market, the various benefits of having a bike insurance policy cover, and how you can select the policy that is right for you.
Let’s begin the ride
In India, there are three primary forms of two-wheeler insurance, third party bike insurance, Standalone Own Damage bike insurance, and comprehensive bike insurance. But first, we need to know a few terms that are pertinent in understanding the various insurance policies.
- The first party in insurance parlance refers to the person who is insured by the insurance policy. It is the first party who pays the insurance premiums and is responsible for renewing the policy once it expires.
- The second party refers to the insurance company that provides you with the insurance cover. It is the responsibility of the insurance company to bear liability for the damages, tackle legal issues, the payout for damages incurred, and also renew the policies and premiums when the time comes.
- The third party refers to the person whose health or vehicle has been negatively affected by the first party. It is the responsibility of the insurer to bear liability for the damages inflicted and settle them at the earliest possible moment.
Now that we have a basic idea of the different terms that are crucial in understanding insurance policies in India, let us take a detailed look at the insurance policies themselves and how they differ from one another.
- Third party bike insurance- This form of two-wheeler insurance is mandatory under law, and operating a vehicle without this is a legal offence. This type of insurance cover provides for the damages incurred by a third party and compensates them accordingly. A third party bike insurance can cover the repair costs of the third-party car while also covering their medical expenses.
This type of policy does not provide for the damage incurred by the first party or the medical expenses that they may incur. This is the reason we have the next form of insurance cover, that is
- Standalone Own Damage (OD) bike insurance cover- This form of insurance policy provides for the damages that may be suffered by the first party or their vehicles. These policies can compensate the first party for damages occurring out of natural disasters, external mishaps, and criminal activities. It should be noted that only having a standalone own damage insurance policy is illegal and the user may be prosecuted by law, which is why we have the following
- Comprehensive insurance- This form of insurance can be understood as a collaboration of third party bike insurance policies and standalone own damage policies. These policies provide compensation for both the first and third parties while being the best choice for legal purposes as well.
Since 2018, by virtue of a Motor Vehicle Act amendment, every new two-wheeler comes with a mandatory 5 years of third party bike insurance cover while the standalone own damage policy needs to be renewed every year. These policies come as a comprehensive package from the showroom.
Now that we have a basic idea regarding the different two-wheeler insurance policies, let us take a look at the various factors that would help us in selecting the right insurance policy for our bikes.
Choosing the right path
Although selecting an insurance policy is based on several factors, some of which may be personal as well, we would like to guide you through and help you make educated choices
- Always prioritise your necessities and focus on exactly what you expect from your insurance policy. Keep this in mind while shortlisting the right insurance policy.
- Before committing to an insurance policy, go through all the conditions carefully and make yourself aware of all the nitty-gritty of the policy.
- You can consider going for digital-first insurers while searching for a good third-party bike insurance policy since they provide a wider cover at lower prices.
- It is always a good idea to always opt for a comprehensive two-wheeler policy since they provide a better cover, and are more convenient as well.
- There are a lot of add-ons and riders that will come your way when you are in the process of shortlisting a policy. Make sure that you pick only the ones that fit your purpose perfectly.
Two-wheeler insurance policies are a must-have in the modern-day, and age. Not only do they provide us a cover against unwanted legal and financial strains but also help us comply with the law of the land. Always do your research before committing to a policy so that you worry less about your covers and enjoy the ride more than ever.