By offering protection against financial liabilities that may arise in case of accidents, two wheeler insurance safeguards the vehicle and its owner. When purchasing a motorcycle, it is also vital to purchase two wheeler insurance to ensure that your vehicle is covered in case of unforeseen accidents. One needs to have proper knowledge of two wheeler insurance policy and all its inclusions and exclusions must be understood before purchasing the same.
Let’s discuss the inclusions and exclusions of your two wheeler insurance policy.
Types of two-wheeler insurance
Liability Only Insurance Policy
Third-party liability policy is mandatory in India by law. It covers against property damage, loss, death or bodily injury to a third party because of a mishap caused by the insured’s two-wheeler.
Inclusions of Third Party Insurance Plan
Third-party insurance for bike covers the insured against any third party legal liabilities in case of a third party death or injury in case of a mishap.
Exclusions of Third Party Insurance Plan
Any damage done due to non-collision is not covered under the two wheeler insurance third party liability plan. You need to bear the expenses of repairs yourself.
Your own vehicle will not be covered when it is damaged in an accident and only third-party liabilities will be covered by the plan. The company provides compensation for the claims made by victims. To get your bike repaired you have to pay from your own pocket.
Any damage done to the vehicle due to natural disasters or theft will not be covered under this plan.
Comprehensive Insurance Policy
This insurance policy covers everything included in a third party liability policy along with additional coverage for damage or theft of the two-wheeler. However, this policy is optional.
Inclusions of Comprehensive Insurance plan
The comprehensive Insurance plan covers damages caused to your vehicle due to non-collision. Along with the third-party cover, it covers the damages done to your own vehicle during the accident.
The best thing about the comprehensive two wheeler insurance is that you can get coverage against damages caused due to natural disasters like an earthquake and heavy rains. In case your two-wheeler gets stolen, you can file a claim. If it is not traced after a few months then it is declared as non-traceable and you will be provided compensation based on the current market value of your motorcycle.
Exclusions of Comprehensive Insurance Plan
The coverage is applicable only when you are driving with a valid license. If you are involved in an accident without a valid license, the insurer doesn’t pay any compensation.
In the same manner, if the driver is riding the vehicle under the influence of alcohol or drugs during an accident, then the claim will not be entertained.
You can’t claim for the coverage if you use the vehicle out of the geographical location specified in the policy. The coverage will be valid throughout the country and any damages that happen outside the country will not be covered under this plan.
The inclusions and exclusions may differ from one insurance provider to another. Therefore, make sure you read all the points mentioned in the policy document, especially the exclusions and the insurance claim process. By doing so, you won’t have any confusion or litigation in the near future.