Bicycle insurance, or “two-wheeler” insurance, is a specific type of policy. Every vehicle on the road must comply with the traffic laws and regulations in effect in 1988, per the Motor Vehicles Act. Depending on the policy’s specifics, it will cover damages the bike causes or sustains in an accident.
Different types of bike insurance policies can be purchased. We’ll talk about them in this room. Two primary kinds of bicycle insurance policies exist. Here are some of them:
Third-Party Liability Insurance Policy
The Motor Vehicles Act of 1988 requires that you carry the minimum level of insurance this policy provides. Every bike in India must have one of these. If your bike causes harm to another person or their property, this policy will pay for the repairs or medical bills. This insurance policy protects the following categories of monetary obligations:
- You could be held responsible if someone is hurt while riding your bike.
- If someone gets murdered because of your bike, you could be held responsible for their death.
- When the bike causes damage to someone else’s property, the rider may be held liable for the repairs.
Only legal obligations to third parties are covered by third-party liability coverage. The insurance regulating and development authority sets the reduced premiums in this policy compared to the comprehensive package policy. All insurance providers charge the same rates for their services. When it comes to unintentional deaths and injuries, there is no cap on compensation. They have complete protection. However, up to INR 7.5 lakhs in property damage coverage is provided. A third-party liability insurance policy does not offer any riders. The price of the premium always varies with the size of the motorcycle’s engine. The No Claim Bonus and other premium discounts do not apply to this coverage. In the past, you could buy it for a single year or two or three years in advance. However, as of September 1, 2018, the minimum coverage period for all new motorcycles purchased should be five years.
All-Inclusive Plan of Action
This policy fully protects the bike. Both the bike and the required third-party liability coverage are protected. Full benefits and higher premiums are associated with comprehensive package policies because of this. This insurance policy protects the following categories of legal responsibility:
Damage to the bike caused by fire, explosion, malicious acts, riots, strikes, etc., or natural disasters such as floods, earthquakes, lightning, landslides, cyclones, etc., would result in monetary loss.
Theft and damage costs incurred while transporting a motorbike by land, sea, or air are compensated for under the policy.
The all-inclusive coverage covers the damages to the bike and any legal liability to third parties. Insurance companies set their premium rates greater than those of third parties. As a result, premiums range widely between providers. Additional features can be added for an additional fee.