Two Wheeler Insurance? bike/Scooter insurance

In India, it is mandatory to have motor insurance as per the Motor Vehicles Act, 1988. This means that buying bike insurance is not an option but a compulsion. Bike insurance is a type of motor insurance that is offered under the general insurance category. It protects you and your vehicle in case of any road accident. In simple words, it provides you financial coverage in case of accidents, theft, third party liabilities and more. The financial coverage offered depends on the coverage as per the policy chosen.

Kinds of Bike Insurance

In India, there are many different insurance policies available to meet the needs and requirements of different insurance buyers. Every person has different insurance needs. Keeping this in mind, insurance companies offer bike insurance policies to meet the demands of diverse customers.

Bike owners can opt for a two-wheeler insurance plan that fits their budget and adequately covers them for the risks that may arise in the future. In India, insurance companies mainly offer two types of bike insurance policies which are as follows.

Third-Party Insurance or Liability Only Insurance

As per the Motor Vehicles Act, 1988, every vehicle owner has to buy an insurance plan for vehicles plying on public roads. In case of an accident, third party liability insurance protects the policyholder from the legal liabilities of any third party. In simple words, if there is any loss to the life or property of the third party due to an accident, the insurance company will cater to the third party (on behalf of the policyholder). However, third party bike insurance does not cover damages caused to the policyholder’s bike. True to its name, third party liability only provides insurance protection for damages or injuries caused by the policyholder’s bike to a third party.

This is the reason why third party bike insurance is offered at low premium rates by many insurance companies in India. You can buy this type of bike insurance for a period of one year and opt for renewal on a yearly basis. It is flexible, easy to buy and easy on the pocket.

Who can buy Third-Party Bike Insurance?

A third party bike insurance plan can be purchased for both private (personal,) and commercial (business related) two-wheelers. If you are running a delivery business, the bikes used to run the business must be insured under third party liability insurance for commercial vehicles.

Note – Third party bike insurance for commercial bikes can be purchased by either the bike owner or the lessee (anyone who wants to buy a bike on lease).

Things to Keep in Mind. While Buying Third-Party Bike Insurance.

Each insurance plan comes with its own set of inclusions and exclusions which are clearly stated in the policy copy. It is important that you thoroughly run your eyes through the fine print of the policy document before purchasing any type of insurance policy. The ins and outs of cover make a huge difference to your protection as well as premium rates.