Is the Entire Two-Wheeler Covered by the Bike Insurance Policy?
- Author :
- TATA AIG Team
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A bike insurance policy is a legal requirement in India. Two-wheeler insurance is a general insurance policy, provided by the insurer companies to cover the various costs that can happen to two-wheelers.
Buying a two-wheeler insurance policy is mandatory under the Motor Vehicles Act, of 1988. Not only is it obligatory but it also saves you from various financial risks caused by any uncertainty ahead.
There are various types of bike insurance policies offered by various companies, and they all provide varied coverage. Choosing the insurance for bike cover can seem like a confusing and daunting task.
It is, therefore, very important to know what is covered in two-wheeler insurance available in the market.
Types of Motorcycle Insurance
To understand the various bike insurance inclusions and bike insurance exclusions, let us see the different types of bike insurance available in the market. Primarily, there are three types of bike insurance policies provided by various insurance companies. They are
Comprehensive bike insurance plans
Third-party bike insurance plans.
Own damage bike insurance plans
The basic features of such plans are:
Comprehensive Bike Insurance Plan
A comprehensive bike insurance plan covers both- the third-party damages to the bike and your damage cover. It also covers the various types of damage caused to other people’s property or vehicles and also damages caused to people.
Comprehensive bike insurance policy as its name suggests covers most of the situations where the motorcycle faces damage.
Comprehensive bike insurance includes cover against natural calamities like floods, and tsunamis, and also manmade disasters like riots, etc.
Third-Party Bike Insurance Policy
Buying a third-party bike insurance policy is mandatory in India. A third-party bike insurance policy can only cover the liabilities occurring to a policyholder due to damages to a third-party person, property, or vehicle.
Own Damage Bike Insurance
As we can see, third-party bike insurance, which is a minimum legal requirement to possess a two-wheeler in India, has a limited coverage scope. If you have purchased this insurance cover but want to increase the coverage to include your own vehicle and yourself too, you can buy your own damage cover along with your third-party bike insurance.
What is Covered in Two-Wheeler Insurance: A Detailed Analysis
Various companies provide various bike insurance covers. Various types of bike insurance cover various types of risks.
For A Third-Party Bike Insurance Policy
The third-party bike insurance cover covers various types of damages and losses to third parties. Accidents are mishaps that happen on the road and they can affect more than just the vehicle owner.
If the actions of the owner result in a loss to a third party, the owner will have to compensate for the loss. Such a loss is covered by third-party bank insurance. This loss includes loss to assets, loss to vehicles, loss to a person, compensation for causing disability, etc.
For A Comprehensive Bike Insurance Policy
A comprehensive insurance policy, as its name suggests, can provide bike insurance full coverage. A third-party bike insurance plan covers those risks that are mentioned by the government in the Motor Vehicles Act, of 1988, and other rules and regulations.
However, a comprehensive bike insurance policy is much more than just a third-party bike insurance policy. It covers the parts not included in the third-party bike insurance policy like the expenses incurred to repair the owner’s vehicle.
The comprehensive bike insurance policy covers a large variety of expenses occurring due to an accident.
Own Damage Bike Insurance Policy
Some insurance companies also provide own damage bike insurance policy that covers the damages that happen to one's vehicle. This bike insurance policy can cover only the damage caused to the vehicle of the owner.
It does provide complete assurance against various risks. If you do not want to purchase a comprehensive bike policy, a standalone two-wheeler insurance coverage taken along with a third-party bike insurance policy can provide your bike insurance full coverage.
However, remember that purchasing only an own damage bike policy without purchasing a third-party bike insurance does not fulfil the legal requirement.
Does Motorcycle Insurance Provide Full Coverage?
A comprehensive insurance policy covers mostly all types of risks that can damage a two-wheeler. But is this coverage full? Let us understand this by an example.
Mr. Shaym met with an accident on the Banglore highway on 2nd November 2023. He had purchased a comprehensive insurance policy a few years ago. He had paid a timely premium for the same, too.
Thus, he claimed compensation from the insurance company. On investigation, the insurance company found that Mr. Shyam was driving at a speed above the limit permitted on the Banglore highway. Is Mr. Shyam liable to get an insurance claim?
The answer is no. Since Mr. Shyam was overspeeding, his insurance claim was declined. Likewise, the insurance company does not cover a few situations that cause damage to the parties. Such situations may include:
Damage caused to helmets or protective gear,
Driving without a helmet
Driving after consuming alcohol or under the influence of drugs
Loss due to overspeeding of the vehicle
Accident while the insured person is a passenger on someone else’s two-wheeler
The vehicle is stolen due to the mistake of the insured person, etc.
For Third Party Bike Insurance Claim
A third-party bike insurance claim does not cover damage to the insured person or his/her vehicle.
For A Comprehensive Bike Insurance Claim
A comprehensive bike insurance claim does not cover damages that are mostly the result of the mistake of the insured person. Along with the points mentioned above, comprehensive bike insurance exclusions include-
Accidents of persons who do not hold a valid driving licence
Accidents that happen outside the geographical boundaries of the scope of the insurance contract
Expenses on bike due to battery or other mechanical costs
For Own Damage Bike Insurance Claim
An own damage bike insurance policy does not cover the damages incurred by third parties to their assets. It does not include the damage caused to third persons as well.
To increase the coverage scope of your two-wheeler insurance plan, you can add various add-ons or insurance riders to your bike policy. These add-ons, like zero depreciation cover and engine protection cover, provide additional coverage to your precious 2-wheeler for a little additional premium.
This blog gave clarity on what aspects a two-wheeler insurance policy covers. There are varieties of insurance policies and add-ons one can find on the Tata AIG insurance website.
If you are looking to financially secure your bike from any mishap for an extended period, long-term two-wheeler insurance would be a perfect choice. While you look for various bike insurance online, make sure you select the one that best suits your needs and top it up with our insurance riders.
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.