Motor Insurance is a type of General Insurance. In this article we will focus on the most basic question – what are the types of motorcycle insurance available and their differences and why you should opt for one.
Why should I pay money to insure my motorcycle?
India is the world’s largest motorcycle market. Every month more than 10 Lakh two-wheelers make it to the roads and this density is increasing with each passing day. With the riding area/roads remaining almost constant, every day there are new motorists and car drivers who take it to the roads – amateur newbies and seasoned!
With the increasing density, chances of accidents also increase. Imagine (god forbid) if you happen to ram your uninsured motorcycle into a car and the car, driver, your motorcycle and yourself, all suffer injuries and damages and the car driver turns up and threatens you to pay for all of that. You are the one who is entitled to pay for the complete loss! Just imagine the financial trouble it will turn out to be. You will have to bear…
- Medical expenses of the driver
- Damages caused to your motorcycle
- Medical expenses for yourself
- You will have to pay for the damages to the car
These costs may range from thousands to lakhs of rupees and can take away all your savings! And all of this at one go! This is where insurance comes into play and becomes your saviour. Apart from being legally binding, insurance is peace of mind! At a nominal upfront payment, you can ride your motorcycle without having to worry about any financial implications that may arise in case of an unfortunate accident. It also protects you against theft, natural calamities and many other events which are beyond your control.
Let us quickly take a look at the types of motorcycle insurances available:
Types of Motorcycle Insurance
Basically, there are two types of motorcycle insurances available:
Third Party Insurance – Third party insurance is a liability-only policy and provides cover against claims of the third party. In simpler terms, in an unfortunate accident caused due to your fault, your insurance company will pay for the damages done to the other motorcycle/car or person and his medical expenses.
This policy is the most basic you can have and does NOT cover your own motorcycle’s damages and injuries caused to you.
Comprehensive Insurance – As the name suggests, it is a policy which covers your two-wheeler’s damages as well as injuries caused to you, in addition to all what is included in third party insurance. Because of its wider coverage (and higher claim frequency) it is costlier but more beneficial in any type of accident.
Long-Term Two-Wheeler Insurance
In order to protect you from the hassles of renewing your motorcycle insurance every year, IRDA (Insurance Regulatory and Development Authority) has introduced Long Term Two Wheeler Insurance which allows you to insure your motorcycle or scooter for up to three years in one go.
You simply need to pay the premium only once to secure your two-wheeler for two or three years and it also saves you from any increase in premium during the policy period.
There are various insurance providers available in the market who offer many add-on features like roadside assistance, higher coverage etc. but before you pay, ensure you read all the conditions and coverage terms mentioned by them.