You finally go ahead and get the dream bike that you always wanted. That’s great! Now, the next step that you need to think about is getting it insured by a good insurance company. It is also important to know that the Indian government has mandated every bike owner to buy a bike insurance policy before driving their two wheeler on Indian roads. This insurance policy will cover your bike and its riders against any unwanted consequences (based on the type of policy you opt). In this blog, we will tell you about the basic things you need to know about a two-wheeler insurance policy. 

1. Types and coverage of this insurance policy

This insurance policy is usually of 2 types:

a. Third party insurance

This insurance policy is a basic policy that is mandatory as per Indian law. It offers limited coverage, that is, it covers your liability towards damages caused to the third party in case of an accident where you are at fault. It also covers the cost of hospitalisation, or temporary/permanent bodily injury to the third party due to your mistake in the accident.

b. Comprehensive insurance

This insurance policy covers all the conditions mentioned in the third party insurance for bike policy and includes an own-damage cover to protect your bike against all odds. So, your bike is covered against theft, loss, and damage due to manmade or natural calamities.

2. Factors that decide policy premium

The premium of a bike insurance policy in India is regulated by Insurance Regulatory and Development Authority (IRDAI). This authority sets the premium rates based on the cubic capacity of the engine of your bike and a part of premium rates are similar across lenders.

The other factors that affect the premium rates of the policy are the age of the bike owner and the geographical region in which the bike is going to be driven. If that geographical region is prone to road accidents, then the premium rates will be proportionally high.

3. Types of add-on covers available

Add-on covers are the extra protection you get for your bike. Some of the add-ons available with comprehensive bike insurance plans are zero depreciation cover, roadside assistance cover, electronic and electric circuit cover, No Claim Bonus cover, key replacement cover.

4. Exclusions of two-wheeler policies

a. Comprehensive insurance

This insurance policy does not cover the depreciation or wear and tear of your bike. It also does not cover mechanical or electrical breakdown of your vehicle, damages to the bike due to driving without a driving license, or under the influence of alcohol. It does not cover damage to your bike due to war or nuclear attacks.

b. Third Party insurance

Apart from the conditions covered in the above sub-point, this insurance policy does not cover damages to your bike due to manmade or natural calamities, or if the accident happens due to your fault.

So, this is what you need to know about two-wheeler policy. Note that you can buy two wheeler insurance online as well. Have a nice day!