Two-wheeler insurance types and why you should have it…
Two wheelers are the most preferred mode of transport among Indians. These vehicles are highly fuel efficient making them a very economical choice. To add to this, they are quick and convenient even in chaotic traffic conditions prevalent in our cities. Many research reports indicate that one in every three households own a two-wheeler in India.
Despite the huge penetration of these vehicles in India, awareness about two-wheeler insurance is very low. Many still think it is unimportant, an additional expenditure to be avoided as much as possible. They are not aware of the safety and security insurance provides against financial liability in an untoward situation like accident or theft.
Before we go further, let’s look at what exactly insurance is. Insurance, by definition, is an arrangement by which a company guarantees to provide compensation for specified loss, damage, or death to the insured in return of regular payment of premiums. Thus, two-wheeler Insurance, which is insurance for scooters, mopeds, motorcycles etc., provides financial protection to the owner of the two-wheeler against any damage or loss and liability, resulting from collision, road accident, theft etc. As an added advantage, two-wheeler insurance also covers losses arising from damage caused by natural calamities, fire etc.
Two-wheeler insurance, just like any other auto insurance, is governed by the Motor Vehicle Act 1988 and Insurance Act in India. This makes it mandatory for all types of vehicles, whether private or commercial, to have it in one or the other form. Two-wheeler insurance is broadly categorized in two formats:
Two-Wheeler Insurance Types
- Third Party Insurance: This type of insurance provides coverage against damages claimed by a third party for injuries caused to them or harm to their vehicle/property resulting from an accidental incident involving the insured person’s two-wheeler. Any injuries to the insured person or damages to his two-wheeler are not covered in this category of insurance and the person must bear these damages himself.
- Comprehensive Insurance: This type of insurance provides cover to a third party like the third-party insurance; additionally, it also covers the insured person for damages caused to his/her two-wheeler involved in the accident. It also covers loss of two-wheeler due to theft. This type of insurance may also provide cover to the injuries caused to the owner-driver during accident upon payment of additional premium.
With the opening of the insurance sector to private players, the industry has become very competitive. Therefore, buying an insurance policy has become easier due to the availability of many insurers and better offers for the consumers. Also, with the advent of commerce portals, these policies can be purchased online.
Not just this, two-wheeler insurance renewal online is also possible. One could just go to the company’s portal, key in the policy number and choose the IDV (value of the two-wheeler). All the policy details are already available with the company and depending on these, a premium quote gets generated for the customer. Once the quote is accepted and payments made, the policy gets renewed – all from the comfort of his home.
Apart from everything else, the biggest asset of having your motorcycle insured is peace of mind as you need not worry about any major financial implications if you happen to have an unfortunate accident – which is something which no one can pre-empt or predict. All these parameters make two-wheeler insurance the single most important product and a must-buy for all you motorcycle and scooter riders.