Due to its convenience, fuel efficiency, and ability to manoeuvre through traffic, a two-wheeler is the preferred mode of transportation for most Indians. But, riding a two-wheeler also poses a higher risk of accidents than other vehicles. Thus, having the appropriate bike insurance to safeguard yourself and your vehicle from unforeseen circumstances is crucial.
Compared to a liability-only policy, a comprehensive two-wheeler insurance policy offers many benefits. Some of the features of a comprehensive two-wheeler insurance policy:
Personal Accident Cover: Comprehensive two-wheeler insurance policies provide personal accident covers of up to Rs.1 lakh, which protects the policyholder against injuries resulting in total or partial permanent or temporary disability or even death.
Protection Against Damages: A comprehensive bike insurance policy provides financial protection to policyholders to meet costs incurred due to the wear and tear of their two-wheelers.
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 specific limit as specified when purchasing the policy.
Coverage Against Death or Bodily Injury: A comprehensive bike insurance policy provides coverage against bodily injuries to the rider and the pillion and coverage against the policyholder’s death.
Comprehensive Insurance vs Third-Party Liability Insurance:
The third-party bike insurance premium is lower than that for a comprehensive insurance policy. However, it only provides coverage for the third party involved in the accident, not the insured vehicle and its owner.
On the other hand, comprehensive insurance covers the insured vehicle and its owner for damages incurred through accidents and even death. The coverage also extends to damage to third-party property or loss of life.
There are several advantages to buying a comprehensive insurance policy for your two-wheeler. Firstly, a comprehensive policy covers damages incurred by the insured vehicle, its owner, and a third party. This means that in the event of an accident, all parties involved are protected financially.
Furthermore, a comprehensive policy offers protection against damages caused by natural or man-made reasons, such as floods, fire, theft, riots, etc.
This type of coverage ensures you are financially secure against unexpected events that may cause significant financial loss. While comprehensive insurance policies for two-wheelers offer a range of benefits, there are also some drawbacks to consider. Here are some potential drawbacks of purchasing comprehensive insurance:
High Premiums: Compared to basic third-party insurance, comprehensive insurance can be more expensive due to the higher level of coverage offered.
usions: While comprehensive insurance covers a wide range of damages and losses, there may be specific exclusions in the policy, such as wear and tear, mechanical breakdown, or damages caused due to driving under the influence of drugs or alcohol. It’s essential to read the policy carefully to understand its limitations.
Deductibles: Most comprehensive insurance policies come with a deductible, the amount the policyholder must pay out of their pocket before the insurance coverage kicks in. This can increase the financial burden on the policyholder in an accident.
Claim Process: The claim process for comprehensive insurance can be more complex and time-consuming than that for third-party insurance. The policyholder may have to provide extensive documentation and evidence of the damages incurred, which can lead to delays in claim settlement.
Claim Bonus: If the policyholder does not make any claims during the policy term, they are eligible for a no-claim bonus, which can significantly discount the premium for the next policy term. However, in the case of comprehensive bike insurance, the no-claim bonus may be lower than that for third-party insurance.
It’s essential to weigh comprehensive bike insurance benefits and drawbacks before deciding. While it offers more comprehensive coverage, it also comes with a higher cost and may have limitations and exclusions. It’s advisable to compare policies from different insurers and read the policy documents carefully to ensure that the policy meets your needs and budget.
