Owning a third-party two-wheeler in India comes with legal responsibilities, and one of them is securing third-party insurance as mandated by the Indian Motors Act. While third-party insurance is a statutory requirement, exploring additional coverage options to protect yourself and your vehicle comprehensively is essential.
Types of Two-Wheeler Insurance
Mandatory Requirement: The Indian Motors Act necessitates every two-wheeler owner to have third-party insurance.
Coverage: Primarily shields against financial obligations from damages or injuries to third parties in accidents. Claims are subject to terms and conditions set forth under the motor insurance policy. *
Limitations: Does not cover personal damages to the insured or the insured vehicle.
Own Damage Coverage:
Comprehensive Protection: A standalone own damage (OD) insurance plan covers damages to your bike caused by accidents, fires, theft, natural disasters, and more. Claims are subject to terms and conditions set forth under the motor insurance policy.*
Exclusions: While OD insurance is not legally required, it is crucial for comprehensive protection as third-party policies do not cover personal damages to the insured bike or rider. Claims are subject to terms and conditions set forth under the motor insurance policy.
How Own-Damage Coverage Works
In the event of an accident, the mandatory third-party policy covers liabilities arising from damage, injury, or accidental demise to third parties. However, the insurer does not provide coverage if your bike sustains damages. This is where your own damage insurance becomes crucial, covering unexpected repair and replacement costs for your insured vehicle. *
Benefits of Own Damage Bike Insurance
- Comprehensive Coverage: Own-damage insurance for motorcycles covers damages caused by accidents, fires, theft, natural disasters, and artificial disasters. Claims are subject to terms and conditions set forth under the motorinsurance policy.
- Additional Customization: You can enhance standard coverage by adding additional features, offering more protection than basic third-party insurance.
- Financial Protection:Provides financial support for repair or replacement costs incurred due to unforeseen incidents.
Comparing Own-Damage and Third-Party Insurance
Included in Own-Damage Coverage:
- Natural Disasters:Protection against losses from cyclones, earthquakes, floods, etc.
- Man-made Disasters: Coverage for damages from events like strikes, riots, vandalism, etc.
- Accidental Damage: Financial support for repair or replacement costs for your insured bike.
- Fire and Explosion: Protection against financial loss due to fire or explosion.
- Theft or Malicious Acts: Coverage to bear financial losses in case of theft or malicious acts.
- Damages beyond Repair (Total Loss):Reimbursement for losses if the bike is irreparably damaged.
Exclusions From Own-Damage Coverage:
- Third-party Damages:Excludes coverage for losses to third parties covered by mandatory third-party insurance.
- Drunk Driving: No claim entitlement if riding under the influence of alcohol or intoxicating substances.
- Riding Without A License: Riding without a valid license results in legal responsibility.
- Mechanical and Electrical Failure: Damages from mechanical or electrical failures are not covered.
- Beyond Policy Terms: Losses exceeding policy terms and conditions are not covered.
While own damage bike insurance is not legally required, it offers far superior coverage than typical third-party insurance. Comprehensive bike insurance, including third-party and own damage coverage, emerges as the optimal choice. *
Bike insurance providers understand the importance of your two-wheeler and recommend securing appropriate insurance. Visit our website to explore bike insurance options, and use our online insurance calculator for premium estimates. Ensure your peace of mind on the road with comprehensive coverage tailored to your needs. Make sure you do your bike insurance renewal on time. Claims are subject to terms and conditions set forth under the motor insurance policy. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.