Finance

What Does the Best Two Wheeler Insurance Covers?

Bike insurance is as important as driving a bike responsibly. It offers financial assistance to the policyholder in case of an unforeseen event such as an accident. If a policyholder gets damaged due to a natural calamity such as flood, then the insurer will cover its repair expenses. Without insurance, a person is left with no financial security and it can be disastrous in an emergency.

There are many benefits of purchasing a bike such as reduced time to commute, easy parking, etc. However, driving a motorcycle also brings in a lot of risk of accidents. A bike driver can meet with an accident due to someone else’s recklessness, poor road conditions, etc. An important thing that helps them in such situations is bike insurance.

While there are many bike insurance policies offered to people, it is important to know the difference between them. Bike plans are provided in two different types, comprehensive policy and third party insurance.

You shouldunderstand how both the policies workbefore purchasing one. The best two wheeler insurance is the one that meets your driving environment.

Here is the difference between a comprehensive policy and third party plan-

  • Comprehensive Plan

Comprehensive bike insurance offers protection against the damage to a third-party property and the policyholder’s bike.

It is recommended that people living in cities buy comprehensive insurance as the likeliness of an accident is higher in urban locations.

  • Third Party Insurance

Third party insurance only covers the damage to a third-party property. It will not cover a policyholder’s bike.

Let’s take an example-

A bike driver meets with an accident with another driver. The accident causes damages to the policyholder’s bike as well as the third-party bike.

  • The bike driver must pay Rs. 10,000 to repair the third party’s bike.
  • The cost of repairs to the policyholder’s bike is Rs. 15,000.
  • The total cost is Rs. 25,000.
  • If the policyholder has third party insurance, then the insurer will only cover Rs. 10,000.
  • A person with comprehensive bike insurance will get Rs. 25,000 as it covers the third-party bike and the policyholder’s bike.

Here are some benefits of bike insurance-

  • Protection against Accidental Damage

It is one of the most important benefits that bike insurance offers to the policyholders. The insurance company covers expense arising due to an accident. However, it depends on whether a person buys a comprehensive policy or third party insurance.

  • Cover against Natural and Human-made Calamities

A bike insurance plan offers cover against natural calamities such as floods, earthquakes, storm, frost, etc. It also covers human-made disasters such as theft, accidents, burglary, etc.

  • Personal Accident Cover

If a policyholder buys personal accident cover, then the insurer will also pay for medical expenses caused by an accident. The insurer covers treatment of the policyholder’s injuries due to an accident.

  • Third Party damages

A bike insurance plan covers the damages to third-party property. Such a benefit is allowed in third party policies as well as comprehensive plans.

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