A two-wheeler is considered one of the most convenient modes of commute. This is because the two-wheelers are so built that they can easily manoeuvre through congested lanes and heavy traffic areas. Apart from their easy-to-use factor, they are much cheaper than a car, which makes them a highly affordable and hence preferable vehicle to own and use. It is imperative to keep your bike safe and sound. Consequently, along with good maintenance, your bike needs robust two wheeler insurance. Moreover, in India, to ride a two-wheeler, you must have at least third party bike insurance. However, it is best recommended that you get comprehensive two wheeler insurance to stay protected against the losses and damages that may occur to your bike owing to an incident or a mishap.
Wondering why you need two-wheeler insurance? Read on to know more in detail!
Why two wheeler insurance is mandatory in India?
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The simple answer to this question is – that accidents happen and they come with major adverse consequences. Keeping in mind this basic idea, the Government of India has designed laws that mandate the need for a two wheeler insurance for every bike owner. Let us discuss in detail the need for bike insurance in India.
Legal compliance: Under the Motors Vehicle Act 1988, which regulates all the aspects of vehicles related to road transport, it is compulsory for every two-wheeler owner (and other vehicles like cars) to have at least a third party bike insurance. This has been done to ensure that in case you cause an accident and a consequential third-party loss, you can be held accountable.
Bad roads and over-speeding: It will be wrong to think that the legal mandate is the only reason why you need bike insurance. In 2022, India registered 1,55,622 deaths due to road accidents (Carandbike.com). This is indicative of the fact of how risky it is to ride on Indian roads. Bad road conditions and over-speeding are the two major reasons behind these accidents. While there will always be some risk, but in case of an accident, a bike insurance cover will provide you with the much-needed financial assistance, lest you incur some major injury or your bike gets severely damaged.
Risk of natural calamities: Like road accidents, no one can really know when they will be hit by a natural calamity. Sure, weather reports can help you with some pre-intimation. But you cannot predict how exactly will it affect you. In case of a natural calamity, like floods, earthquakes, or lightning, your bike may incur heavy damage. Sometimes there can be total loss or damage as well. In such a case, your two wheeler insurance plan will cover your loss.
Man-made losses: Human behaviour is anything but predictable. We live in a world where riots, burglaries, and thefts do happen and no matter how unwanted, and uncalled for they are, these incidents do happen. Such man-made disasters invariably cause loss of life and property. In case of your bike is damaged or burnt or stolen, the loss could be reimbursed if you have a two wheeler insurance in place.
Guard against third-party losses: What if you have caused an accident as a result of which a third person got injured leading to partial or permanent disability or even something as extreme as death? Or something relatively less grave, but still a loss – like a loss to their property? You will be held liable for causing these losses. Along with financial liabilities, you may also have to deal with legal liabilities. With a third party bike insurance these third-party liabilities will be taken well care of.
Financial support: Repairing your damaged bike can be an extremely costly affair. If you were to bear these expenses from your own pocket, it can easily deplete your savings. You can avoid such financial burden by paying a premium to get a comprehensive two wheeler insurance.
What is covered in a two wheeler insurance?
Now that you are well aware of the need or relevance of two wheeler insurance in India, it is imperative to know what is covered in a two-wheeler insurance. There are mainly three types of bike insurance – third party bike insurance, standalone or own damage cover, and comprehensive bike insurance.
Inclusions of third party bike insurance:
- In case of a loss or damage to a third-party property, the insurance plan covers you by providing compensation to the third party.
- In case of bodily injury, temporary disablement, permanent disablement, or death of a third party, your bike insurance provider will pay the affected third-part the due compensation.
Inclusions of standalone or own damage cover:
- It will provide financial coverage for partial damage or total loss of the bike due to natural calamities like fire, hailstorm, explosion, self-ignition, landslide, lightning, hurricane, etc.
- It will also protect you against man-made disasters like burglary, theft, riots, strikes, vandalism, terror attacks, etc.
Inclusions of comprehensive two-wheeler insurance:
- All such coverage that is offered by a third party bike insurance
- Coverage offered by a standalone or own damage cover
- Under a comprehensive plan, apart from the aforementioned you will also get medical cover for any injury or disability caused to you in an accident. It will cover the cost of your treatment.
- In the unfortunate event of the death of the bike rider, the insurer provides compensation to the nominee of the bike insurance chosen by the policyholder.
What is not covered in two wheeler insurance?
Listed below are some of the exclusions of comprehensive bike insurance –
- Depreciation i.e., wear and tear of the bike is not covered.
- You cannot make a claim for an accident if you are riding without a driving license or the registration certificate or without valid bike insurance.
- You won’t get any coverage if you ride under the influence of alcohol or any drugs.
- You won’t be covered if there is an accident or mishap outside the geographical boundaries stipulated in the policy document.
The insurer won’t offer any coverage in case of war or nuclear attacks
By now you must have understood the rationale behind the mandatory need for two wheeler insurance in India. While a third party bike insurance is an absolute must, because it is mandated by the law, equally important is to arrange for all-around security of your bike. For this, you should buy comprehensive bike insurance cover.
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