Why you should buy Two wheeler insurance policy?

Two wheelers are the vehicles of choice for Indians. In addition to being economical and effective, two wheelers provide a convenient way of transportation on the busy and unstructured roads of India. Due to the increasing demand of two wheelers, the motorcycle industry has been able to witness the most explosive growth which is expected to sustain till 2020. The segment is expected to expand to 20 million units per annum in 10 years. Talking about production, India is the second largest producer of motorcycle in the world and in the year 2015, 16.1 million two wheelers were manufactured in India.

Even after being a country of biker where one in three households own a two wheeler, most of the people are not aware about the importance of two wheeler insurance. People consider two wheeler insurance as a financial burden or just a mandatory law in India. But a two wheeler insurance policy is much more than that. It could do wonders to your life by providing benefits in various ways, but to avail these benefits the only thing you need to do is to understand the importance of two wheeler insurance and buy the best policy for yourself.

So through this article, we will try to understand, why you should buy two wheeler insurance:-

Need of Two wheeler insurance

Two wheelers are considered to be way more vulnerable to road accidents than any other vehicle.  This is because a person on a two wheeler is more exposed to danger than a person seated in his car. In such situations, having a two wheeler policy which provides protection against your own damage and other dangers on road becomes compulsory. It is even mandatory to have a third party two wheeler insurance for every driver and owner.  Driving a vehicle without a motor insurance is considered illegal in India.

In addition to providing protection against loss and damage due to accidents on roads, a two wheeler insurance policy provides protection against various man-made and natural calamities also. So you don’t need to worry about the complete loss or damage to your vehicle in case of natural or man-made calamities like earthquake, flood, fire, etc., as your two wheeler insurance policy will take care of it.

Buying the Right Policy

There are more than 15 motor insurance companies in India with various motor insurance policies and choosing the right one for you can be tricky sometimes. It is your responsibility to choose the right two wheeler insurance policy on the basis of your need and situation as different two wheeler insurance policies offer different benefits. You also need to go through the various terminology of two wheeler insurance like IDV, depreciation rate,  NCB, etc., so that you can take advantage of your policy. A wrong two wheeler policy will not only become a financial burden to you, but will make you vulnerable to loss and damages on the road, even after having a policy.


Additional Reading:- Zero Depreciation Cover for Bike Insurance


Following are the basic things which you need to keep in mind before buying a two wheeler policy:-

  • Your need

Understanding your need before making any decision allows you to shape your decision in the best possible way, so that you can be more effective and efficient. The same thing goes for a two wheeler insurance policy. Before making any investment, you must understand and analyze the main motive behind it, so that you don’t have to face any hassle in future. Questions like, why are you buying the insurance policy? What are the returns you expect? Is this policy feasible according to your budget? must be answered before buying a two wheeler insurance policy.

  • Type of your vehicle

Knowing the type of your vehicle allows you to choose the right two wheeler insurance policy.  You should always buy the policy on the basis of type, make and model of your two wheeler. This is also important because you actually get an approval from the insurance company and this can influence the amount of the premium of your two wheeler insurance policy also.

Insurance cover

A two wheeler insurance policy provides cover for various types of damages and loss which are as follows:-

1. Natural and man-made calamities

A two wheeler insurance policy protects you from the following natural and man-made calamities:-

Natural calamities Man-made calamities

Fire

Explosion

Self-ignition

Rockslide

Landslide

Cyclone

Frost

Hailstorm

Flood

Typhoon

Hurricane

Earthquake

Lightning

Tempest

Inundation 

Burglary

Theft

Riot

Strike

Malicious act

 

2. Personal Accident cover

Personal accident cover is one of the most important cover which a bike owner or driver should consider. The claim amount in a personal accident cover is limited to a certain amount. Under this cover, an insurer provides protection against loss or damage (injury) while travelling, mounting or dismounting from your vehicle during driving. You can also get cover for co-passenger by paying an additional price.


Additional Reading: Benefits of Two Wheeler Insurance Renewal


3. Third Party Cover

This is not only a mandatory cover for any two wheeler driver or owner in India, but it is one of the most important cover of two wheeler insurance policy also. The third party facility in a two wheeler insurance policy provides cover against legal liability which occurs in the event of an accident resulting in the permanent injury or death of a third party. The cover provides protection against damage caused to the adjacent property.

Best two wheeler insurance providers

Two wheeler insurance providers Third Party Cover Personal accident cover Incurred Claim Ratio(2015-2016)
ICICI Lombard Two wheeler insurance policy Yes Rs.1 lakh 81.47%
Bajaj Allianz Two wheeler insurance policy Yes Rs.1 lakh 72.30%
HDFC Ergo Two wheeler insurance policy Yes Rs.1 lakh 72.82%
Universal Sompo Two wheeler insurance policy Yes Rs.1 lakh 70.80%

A theft or accident of your two wheeler will not only hamper your savings, but will also make your daily commute harder. Therefore a two wheeler insurance policy is necessary to protect yourself from financial losses and legal liability in case of loss or damage to your own vehicle or to a third party’s vehicle and property. In addition to the above mentioned benefits, a two wheeler insurance policy also gives personal accident cover and offers other financial benefits like NCB and cover for towing charges.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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