As per a study, approximately 1.47 lakh individuals were involved in fatal road accidents in 2017. A significant proportion of such fatalities were a result of bike accidents, in which both riders and third party individuals were affected. Availing bike insurance plans has thus been made mandatory to preserve the financial interests of accident victims as well as third-party victims. Any individual possessing a two-wheeler has to obtain a bike insurance cover, as per the Indian Motor Vehicles Act of 1988.
Presently, insurance aggregators offered several kinds of bike insurance policies that provide a variety of coverage benefits. Third party bike insurance covers are the most common type of insurance plans available, as it has relatively low premium payments and is aligned with all government regulations. Nonetheless, other types of insurance policies, like comprehensive plans are also available in the market that comes with their associated benefits.
Bike insurance policies – An overview and comparison
- Third-party bike insurance plans
In case of an accident, any injury sustained by a third party individual is paid for by the respective insurance aggregator under a third party bike insurance plan. All hospitalization or vehicle repair-related expenses can be claimed by the third-party in such cases. High sum assured is also extended to the third party in case of a demise or permanent disability as a result of the accident.
It is among the oldest existing form of bike insurance plan available in the market, fulfilling all the norms of the Motor Vehicles Act. You can avail third party bike insurance online, by submitting KYC and bike documents with the stipulated non-banking financial institution.
Nonetheless, the insured individual possessing third party bike insurance plans is unable to benefit from coverage in case of road accidents.
- Comprehensive bike insurance policy
Such two-wheeler insurance plans provide widespread coverage to both parties involved in an accident, along with numerous additional benefits. In case of accidents, coverage is extended to both the insured individuals and third party victims against any injuries sustained.
The benefits of the bike insurance plan are also applicable for any damage to the vehicle of the parties involved. Also, individuals can claim coverage in case of damage to the bike as a result of the following circumstances –
- Natural disaster.
- Damage during vehicle transportation through road, rail, waterways, elevators, etc.
Such policies can be more beneficial over a third party alternative as they protect the financial interests of the insured individuals, along with fulfilling all legal obligations.
Individuals can also avail a Personal Accident Cover offered by Bajaj Finserv in addition to bike insurance plans, to increase total coverage in case of adverse situations.
Advantages of comprehensive bike insurance policies
- Widespread coverage
The insurance plans provide compensation for expensive treatment of any injury developed as a result of an accident. Coverage against surgery costs, medication, and hospitalisation are extended. You can avail such insurance plan along with bike insurance policies to increase the aggregate amount of sum assured.
- No claims bonus
An insured can earn substantial discounts on premium payments for each claim-free year on personal accident cover. IRDA approved discounts are applicable on premium payments of bike insurance plans as well.
Comprehensive bike insurance plans come with several top up plans such as depreciation covers and insurance policies for spare parts. With an increased number of accidents occurring in India each year, availing a bike insurance plan is crucial. As for the choice of coverage, obtaining comprehensive bike coverage is beneficial when individuals seek a widespread coverage against the payment of higher premium.
However, a third party bike insurance plan protects against financial liabilities emerging via a third party during accidents. It is also suitable for individuals who require insurance coverage for their two-wheelers within budget. So, if you do not have your bike covered, choose coverage as per your suitability and proceed to apply with premium payment.