Under the Motor Vehicle Act, 1989, two-wheeler owners are legally liable to always carry an insurance policy of their vehicle. And it is wise for you to know what should and should not be included in that insurance cover.
Just to meet compliance and to save some money, owners often take just third-party insurance which is a minimum mandatory requirement. But the point of having an insurance is to reduce risk to your life and savings. Therefore, you must be aware of the essential components of your two-wheeler insurance policy.
HAVES
Here are the things that you must include in your two-wheeler insurance policy.
Comprehensive Cover
The comprehensive insurance policy also covers third party liability by default and a host of other benefits to hedge your risks on Indian roads. Its coverage includes end-to-end cover of your vehicle for damage caused due to an accident or any natural calamity. This means that from plastic parts and electronics to metal parts and rims , everything is insured in the event of a road accident.
Personal Accidental Insurance
Indian roads are one of the most unsafe roads in the world. Every year over a lakh people are killed on Indian roads. Hence, it is essential for every rider to buy an adequate risk cover to hedge the financial risks of their dependents and families.
Personal accident cover includes expenses of hospital bills in case of an accident and full reimbursement of the sum insured in the event of the death of the rider. It also offers disability compensation in the wake of any permanent or temporary disability that may happen in an accident.
Add-on Covers
The challenges faced by every bike is different based on where the rider lives and the type of terrain the bike is exposed to everyday. This means that every rider should opt for add-on covers wisely by assessing their situation.
HAVE NOTS
Here are a few things which are worth not buying in a bike insurance.
Engine Protection Cover
Engine protection add-on is a sure thing to opt for when you own a car. However, engines of a bike have a lower chance of getting flooded in rains. The reason being, whenever a bike enters flood water, its combustion silencer fills up first that makes the engine to stop working completely. This prevents the entry of water into the engine.
Also, the cost of repairing a bike's engine is not much which would not justify paying a higher insurance premium. This means that even if you are living in a tropical city like Mumbai, buying the engine protection add-on for a two wheeler may not reap major benefits.
Paint Protection Cover
Major parts of all the bikes now come in plastic with graphic stickers. Hence, there isn’t a significant metal part whose paint will wear and tear over the years.
Happy Buying!
