Most of you are aware that motor insurance is mandatory for all vehicles registered in the country. What many of you miss is knowing the inclusions and exclusions under your policy. Although it is a regulatory norm to have a motor insurance policy, it helps in the long run if you make a careful choice considering your requirements.
Let us look at a few noteworthy inclusions and exclusions to verify when purchasing two wheeler insurance online or offline –
Your policy type determines the inclusions of your plan
There are two types of two-wheeler insurance plans that you can purchase – third-party and comprehensive plan. The type of policy you select defines the coverage of your insurance plan. A third-party policy covers only third-party liability. It means any damage to any other person, i.e. the third party, your insurer will provide for the financial liabilities you might face. On the contrary, a comprehensive insurance plan provides more wholesome coverage. They include the damages to your bike along with third-party liabilities.
Coverage for perils
A comprehensive plan inclusion has coverage for perils that can damage your bike. These perils can either be natural as well as the man-made disasters. Thus, in the event of a calamity like an earthquake, explosion, floods, lightning, riots, strikes, etc. your comprehensive plan offers the necessary coverage for your bike.
Inclusion for theft and vandalism
A comprehensive policy includes coverage for theft and vandalism. Any financial loss due to these unfortunate events are reimbursed when you purchase a comprehensive cover. In these cases, the insurance company pays the insured declared value or IDV as compensation. Adding a return to invoice cover further increases the claim amount that shall be paid in case of such an event.
Personal accident cover
While it is mandatory to have at least third-party insurance policy, it is also compulsory to have a personal accident cover. Using a personal accident add-on, your insurer shall pay monetary compensation in case of accidental death or disability. The amount of sum paid depends on the disability of the rider or insured individual.
Limitation of coverage
Different insurance policies have a capping on the amount of claim that can be made. For instance, the maximum amount you can claim under a third-party policy for property damage is restricted to ₹ 7.5 lakhs. But the same is not limited to cases where there is death. The claim amount depends on the discretion of the Motor Accident Claims Tribunal. For comprehensive policies, the maximum claim amount is limited to the insured declared value or IDV of your policy. Any claim beyond the IDV will not be paid even if the cost of repairs exceeds the IDV.
More or less similar exclusions
The list of exclusions is more or less similar across insurers and its various plans. Some common exclusions include drunk driving, driving without a license, deliberate accidents, consequential losses, driving outside the geographical region, etc.
No coverage for a lapsed policy
To enjoy continued benefits, you need to ensure your two wheeler insurance renewal is done well in advance. If you fail to renew your policy, you lose on accrued policy benefits as well as the loss of coverage.
Take advantage of the various add-ons to make the most of your two-wheeler insurance policy. While comparing the available options, a two wheeler insurance premium calculator is a handy tool that can aid the comparison while keeping your premiums in check. Make sure you note the above-mentioned inclusions and exclusions when selecting a suitable policy for your bike insurance needs.
