Two-Wheeler Insurance Benefits

03 June 2019

As the number of vehicles on roads increases, accidents, and related unfortunate incidents. It is not compulsory that accidents have to happen due to your negligence; it can be due to the other party’s negligence. Apart from the injuries, damages to the vehicle and associated stress, it also takes a toll on your finances. All these reasons make buying a two-wheeler insurance a prudent choice.

Consequent to the directive of the Supreme Court of India, effective from 1st September 2018, all General Insurance Companies are required to issue a five-year third party (TP) insurance cover for new two-wheelers. Vehicles running on roads in the country without a valid insurance policy are liable to attract heavy penalties. Hence, every owner of a two-wheeler is required to hold at least a mandatory third-party liability insurance cover, which is the minimum coverage for two-wheelers.

Protection against natural disasters

Having your two-wheeler insured will protect you from the expenses incurred due to damage sustained by your vehicle in case of natural disasters like flood and earthquake, to name a few.

Protection against non-natural incidents

Having two-wheeler insurance also covers you against loss and damage due to theft, strike, burglary or war.

Legal liabilities

In case of a third party being involved in an accident with your two-wheeler, there are bound to be legal liabilities. Third-party insurance, which is mandatory with two-wheeler insurance, protects you against any third-party liability arising due to an accident.

Other benefits

Buying a two-wheeler insurance policy and renewing it regularly and on time makes you eligible for specific discounts such as No Claim Bonus (NCB). NCB is the bonus you earn for every claimless year of your insurance. In other words, it is the benefit given by the insurance provider for safe driving and maintenance of your vehicle. At the time of renewal of your two-wheeler insurance, the higher the NCB, the lower will be your insurance premium.

Cashless claim

This is one of the major benefits of having a two-wheeler insurance policy. You can get your damaged two-wheeler at any of the network garages affiliated with your insurance provider. The bills for those repairs will be settled between the garage and the insurance provider. You need not arrange funds for the repairs.

Insurance cover for personal accident

Insurance cover for personal accident has been another regular feature of the two-wheeler insurance policy and it provided coverage for the rider against any injury resulting from an accident. While it is not mandatory to buy this cover with a two-wheeler insurance policy, having this cover is mandatory as per the law. So, it makes sense to avail of this benefit. If you already have a personal accident cover from an existing vehicle, you need not repurchase this cover when you purchase a new two-wheeler.

Long term insurance

Insurance providers have launched long term insurance products, which can cover your two-wheeler for three years. The major benefit of this option is that the premium is fixed for the whole term and does not vary, unlike in the case of yearly renewal where usual price hikes by insurers or tax rate changes invariably increase the premiums. Additionally, you can relax for three years without worrying about missing the deadline for yearly renewal.

Let us know more about two benefits in particular: third party liability insurance policy coverage and Comprehensive Policy coverage, also known as Comprehensive Package Policy.

Third Party Liability Insurance Coverage Policy

It is called 'third-party' insurance since the beneficiary of the policy is someone other than the Insurer ( the Insurance Company) and the insured (generally, the vehicle owner). This policy covers the legal liability on the part of the Insured Person, towards the death/disability caused to the third-party or loss or damage caused by the insured vehicle to the property of the third-party property.

Comprehensive Insurance Policy

This provides complete cover for the two-wheeler and the insured. In other words, the comprehensive plan covers the third party liability as well as your injuries and vehicle damage or theft. Many other add-ons and optional covers are also offered by some Insurance companies, such as zero depreciation coverages, which covers even the cost of consumables. Further, it also offers personal accidental cover for the owner or rider in the event of an accident. Also, this type of two-wheeler insurance also covers you in the case of third-party liability.

So, knowing all these benefits, it is important that you do not neglect both buying and renewing your two-wheeler insurance cover. Choose one which has all the bases covered, at a reasonable cost, with a good claim settlement ratio.

Liberty General Insurance offers comprehensive two-wheeler insurance policy.here.