Apart from the fact that motor insurance is mandated by the law, it is very important to understand that two-wheeler insurance is also the need of the hour for many reasons. However, one of the primary reasons for anyone to have motor insurance is to protect oneself from the third-party liability cost.
Personal accident cover is one of the most important covers that every bike owner must consider. The bike insurance company will offer cover of up to a certain amount, under this plan. The individual owner/driver of the vehicle will be covered when driving against loss or damage while travelling, mounting or dismounting from the vehicle. For an additional premium, you can also get cover for co-passengers.
Liability Only Insurance Policy : Also called Act Only Policy, this policy is mandatory in India by law. It covers against property damage, loss, death or bodily injury to a third party because of an accident caused by the insured two-wheeler. This insurance covers the owner of the two-wheeler as well.
Comprehensive Insurance Policy: Also known as Package Policy, this covers everything included in a Liability Only Policy along with additional coverage for damage or theft of the two-wheeler. This is an optional policy.
Own Damage Policy : This covers against losses/damages caused to a two-wheeler on account of:
Two-wheeler insurance can be Comprehensive or Third Party. The former offers complete protection and hence the premiums are higher.Insured Declared Value (IDV)
IDV is the amount the insurance company agrees to pay in case of a claim, and it is computed based on the manufacturer's listed selling price of the two-wheeler. Higher the IDV, higher is the insurance premiums.Cubic Capacity (CC)
Cubic Capacity is the two wheeler's engine capacity and it plays a role in determining the two wheeler's insurance premium. Higher the CC, higher will be the premium.