Two-wheeler insurance plan is a general insurance product that offers protection to the insured two-wheeler and its owner/driver against unfortunate events, including road mishaps, accidents or natural disasters that may require an unforeseen expense for the owner. The coverage is offered to a range of two-wheelers including Motor-cycles, Scooters, Activa, etc.
A two-wheeler insurance policy eases out the financial and legal burden that may arise out of situations involving damages or loss caused to the owner/driver of the insured two-wheeler, the insured vehicle, or any third party or their property.
Importance of Two-wheeler Insurance
As per the Indian Motor Vehicle Act, 1988, it is mandatory for any two-wheeler plying on the Indian roads to have a minimum of third-party vehicle insurance cover. Two-wheeler insurance plans not only provide coverage against third-party liability but also offer comprehensive coverage to the owner/driver of the two-wheeler. These plans cover accidental death or disability of the owner/driver and the cost of repair incurred due to damages caused to the insured two-wheeler.
Types of Two-Wheeler Insurance
Basically, two-wheeler insurance plans are categorized into two types and each of these two types offers a different set of benefits and perks to the policyholders.
- Third-Party Insurance: Also called liability only insurance, this plan covers the insured and the owner/ driver of the two-wheeler against third party liabilities arising out of an accident, which causes damage or loss to the third party or its property as well as death/disability of the Owner Driver arising out of the Accident. In this type of policy, only third-party damages that are caused by the insured vehicle are covered. Any damage caused to the insured two-wheeler is only covered in a comprehensive plan. It is mandatory to have third-party two-wheeler cover. And all the two-wheelers that are being purchased September 1, 2018 onwards would need 5-year third-party insurance cover.
- Comprehensive Two-Wheeler Insurance: Also called as package policies, this two-wheeler insurance offers comprehensive coverage to the insured two-wheeler. Apart from third party liability cover, this plan also covers disability or the death of the owner/driver and damage to the insured two-wheeler due to an accident, theft, riots, fire, earthquake, or explosion. There are various add-on benefits like roadside assistance cover, towing assistance, zero depreciation cover, and emergency fuel assistance among others.
