In India, the most desired mode of commutation is a two-wheeler. The convenience that it offers in getting ahead of traffic in bumper-to-bumper situations, its ability to zip through narrow lanes, and the savings it provides through fuel efficiency are unparalleled. However, the risk involved in getting to your destination on a two-wheeler is higher than that posed by other modes of transport. Since it is a relatively light-weight open vehicle, the damages incurred by the rider when it is involved in an accident are higher. Hence, it is crucial to get your two-wheeler appropriately insured to tide over unpleasant events.
The Indian Motor Vehicles Act, 1988 makes it mandatory for all vehicles to be protected by a liability insurance cover. This insurance protects the vehicle owner from losses to third-party property or life.
Comprehensive Two Wheeler Insurance Coverage:
A comprehensive two wheeler insurance policy is a lot more effective than a liability-only policy. The following are the features of a comprehensive two wheeler insurance plan
Personal accident cover:
Comprehensive two wheeler insurance policies come with personal accident covers of up to Rs.1 lakh so that the policyholder is insured against injuries resulting in total or partial permanent or temporary disability or even death.
Offers protection for costs incurred due to damages:
A comprehensive two wheeler insurance policy offers financial protection to policyholders to meet costs incurred due to the wears and tears of their two wheelers. Whether the vehicle suffers such damages due to natural or man-made reasons, the insurance company will cover the costs and restore the vehicle to its original running condition. Majority of the insurers provide optional or additional features, such as zero depreciation cover, for instance, to help in saving costs on consumables.
Coverage against third party liability:
In case you meet with an accident and cause damages to the property of a third party, or even bodily injuries or death, a comprehensive two wheeler insurance policy will cover the costs associated with it. However, the loss will only be covered for a certain limit as specified at the time of purchasing the policy.
Coverage against death or bodily injury:
A comprehensive two-wheeler insurance policy provides coverage against bodily injuries to the rider and the pillion, as well as coverage against death of the policyholder.
Comprehensive Insurance Versus Third-Party Liability Insurance
The premium for third-party insurance is lower than that for a comprehensive insurance policy. However, it provides coverage only for the third party involved in the accident, and not the insured vehicle and its owner.
On the other hand, the comprehensive insurance provides coverage to the insured vehicle and its owner for damages incurred through accidents, and even death. The coverage also extends to damage of third-party property or loss of life.
The advantages of purchasing a comprehensive insurance cover for your two-wheeler includes the following:
- Damage to insured vehicle - Restoring a vehicle after an accident and its maintenance is an expensive task that can burn a hole through your budget. If the insured vehicle is partially damaged in an accident, you can be assured of reimbursement of the expenses for repair. In case the vehicle has been damaged beyond repair, you can claim for the Insured Declared Value (IDV) of the vehicle. However, this is possible only if the vehicle has a comprehensive insurance policy.
- Injuries to rider - If the rider of a two-wheeler suffers injuries in an accident, his medical expenses will be covered by a comprehensive insurance policy. Hence, a comprehensive coverage is like a safety net that protects you financially in the face of unprecedented events.
- Disability or death - The offers protection to the rider of the vehicle if he suffers temporary or permanent disabilities post an accident. The coverage also extends to the death of the policyholder. The medical expenses in such situations are usually very high, and financial assistance can provide some comfort to the dependents of the unfortunate.
- Third-party liability - The comprehensive insurance policy is beneficial as it offers protection to third-party against damages to property. It also offers coverage for injuries suffered by the third party or even his/her death.
In summary, it is advisable to opt for a comprehensive two-wheeler insurance cover as opposed to third-party liability insurance. The former covers expenses of all damages suffered by the insured vehicle, its owner, and affected third-party, while the latter offers only minimal protection.