A two-wheeler insurance policy is a kind of agreement between the individual and the insurance company that covers any damages to the two-wheeler in case of an accident, theft, and natural calamities, such as landslides, storms, earthquakes, and floods, etc. Moreover, it also provides insurance cover against damages due to fire, riots, and explosions.
Two-wheeler insurance is mandatory in India. Falling under the category of General Insurance, an active two-wheeler insurance shields the insurer from any serious damage to the vehicle. A two-wheeler insurance policy provides protection against injuries incurred by the rider and pillion, the pedestrian along with the damage to the property of the third party.
Every authorized insurance company, registered under the Insurance Regulatory Development Authority of India (IRDA), offers a two-wheeler insurance policy to the insurer.
Taking an insurance cover on your two-wheeler, not only ensures financial protection in case of calamities, but it also ensures you peace of mind at the time registering a claim. When you have a valid insurance policy on your vehicle, you do not have to worry about any financial crisis that may occur suddenly from an accident or any other kind of untoward incident. Furthermore, riding a two-wheeler without an active insurance plan is regarded as illegal in India.
When you have a proper two-wheeler plan, you will have:
- Freedom from financial stress: If your vehicle gets stolen or damaged, you will not have to worry about the charges incurred in repairing or replacing it. Your insurance company will compensate it, depending upon the insurance plan.
- Personal Accident Cover: If you have taken a valid two-wheeler insurance policy, the insurance company provides you cover up to Rs.1 Lakh if you have suffered total permanent disability. In case the accident results in your untimely demise, the insurance company will give the sum insured to your family.
- Cover against third-party liabilities: With a two-wheeler insurance policy, you get financial protection against third-party liabilities. This is the reason why purchasing two-wheeler insurance has been made mandatory under The Motor Vehicles Act, 1988. A third-party liability would take place if an injury occurs to the third-party person or damage to the property of the third party with the insured vehicle. In such a case, the insurance company will compensate the damages.
- Legal Protection: As it is mandatory to have a valid insurance policy for your two-wheeler, carrying a copy of the insurance policy ensures legal protection against penalties or fines for traffic offenders.
- No Claim Bonus and Discounts: Against the preconceived notion, purchasing a two-wheeler insurance policy is not as financially strenuous as it may appear. You do not have to pay the full premium, every time you renew your policy. You can also avail No Claim Bonus, in case you do not make a claim within the insured period. The No-claim bonus starts with the first renewal of your two-wheeler insurance. At the time of the second renewal, you will get discounts up to 25% that rises to 50% with every consecutive claim-free renewal. Apart from the normal coverage as per the policy, you can increase its scope by taking Add-ons such as Zero-Depreciation Add-On, Pillion Rider, NCB protects, Two-Wheeler Insurance Personal Accident Cover, etc. It is always better to make informed decisions. We, at SIB, are always there to provide you full assistance in selecting the right policy for your two-wheeler at the cheapest price and adequate coverage.