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About Two Wheeler Insurance


What is Two wheeler Insurance?

Two wheeler Insurance protects your vehicle from any financial loss due to damage/theft of your Two wheeler.  Indian laws demand a minimum level of Two wheeler insurance as a mandatory condition for driving.


Two wheeler Insurance can be divided into 2 broad categories:-

  • Third Party- This type of cover provides for a prescribed insurance for loss/damage incurred to another person or vehicle or property by a Two wheeler being driven by an individual. This cover is mandatory for driving in India.
  • Own damage- This type of cover provides insurance to a Two wheeler owner against vehicle damage/ theft/ bodily injury. This cover is optional  for a Two wheeler owner

Two wheeler Insurance policies also cover for medical expenses in the event of accidents at times.
Types of Two wheeler insurance plans


Comprehensive Two wheeler Insurance

These plans protects against any loss or damage caused to the vehicle and its insured accessories as a result of natural and man-made calamities. These calamities can be classified under ‘Natural Calamities’ and ‘Man Made Calamities’. Natural calamities include: fire, explosion, lightning, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide, fire and shock damage due to earthquake.
Man-made calamities: burglary, housebreaking, theft, riot or strike, accident by external means, malicious act, terrorist activity and damage during travel by road, rail, inland-waterway, or air. This policy also includes personal accident cover, which provides accident cover for the driver of the vehicle while driving.
The owner can avail personal accident cover for passengers in the vehicle. Another mandatory feature is the third party legal liability cover. It protects the owner against legal liability arising from an accident causing any permanent injury or death as well as any damage to the property. It also covers for fire and theft provided the vehicles are laid up in a garage and not in active use.



Third Party Two wheeler Insurance

Third parties are mainly pedestrians, fare-paying and non fare paying passengers in a vehicle. Fare paying passengers are the people who travel in public transport such as taxis, auto rickshaws and buses.
Non-Fare Paying Passengers are the people who are allowed to travel in a vehicle for free. The Third Party Two wheeler insurance policy covers your legal liability for any compensation to be paid arising from accident caused by your vehicle. It includes liability for death or injury to third parties like pedestrians, occupant of other vehicles, and outsiders other than passengers.
Passengers of private vehicles and pillion riders are also considered to be covered. As an owner of the vehicle you are insured against death or injury caused to passengers Two wheelerried in the vehicle for hire. The liability covered is unlimited in case of death or injury. Damage to third party’s property is usually covered by the insurance policy.



What to consider while buying a Two wheeler Insurance policy?

Following points must be Two wheelerefully considered:-


  • IDV- This is one of the most important features to be considered and refers to the Insured Declared Value. This is the maximum sum insured that the insurer will provide the policy holder in the event of theft/ total damage to a vehicle. Simply put, this is the current market value of your vehicle as estimated in the insurance contract
  • Coverage- One must look at what all is covered under the policy especially consumables during repair work (labor charges, nuts, bolts etc). Also, some polices don’t cover glass and rubber charges
  • Workshop network- One should check the network of empanelled workshops to ensure maximum cashless garage network so as to avoid reimbursement oriented scenarios in the event of a claim
  • Discounts- Once can avail discounts and No claim bonus while buying a new policy. No claim bonus can also be transferred from an existing vehicle to a new vehicle. In addition, installation of security / anti theft devices prescribed by ARAI also lowers the cost of Two wheeler Insurance.

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