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Bike Insurance Types You Must Know About

This guide explains the three main types of bike insurance in India. Know the benefits and coverage of each to choose the right plan for your bike and ensure financial protection in case of accidents, theft, or damage.

  • 19 Sep 2024
  • 3 min read
  • 33 views

You must choose the correct type of motorcycle insurance if you ride a motorbike in India. This serves legal needs and provides financial defence in certain situations. Bike insurance types vary greatly to cater to risks associated with riding in bustling city traffic or peaceful rural areas. You need to select a plan that offers adequate coverage, considering the high frequency of road incidents and thefts. Adequate coverage ensures compliance with Indian traffic laws and secures financial stability against potential losses from accidents or theft. Moreover, suitable types of motorbike insurance can provide benefits that minimise out-of-pocket expenses during unexpected events. These types of two-wheeler insurance ultimately enhance your riding experience with peace of mind and security. Understanding your specific needs, the bike’s usage, and local conditions will guide you in choosing the most appropriate types of 2-wheeler insurance.

Types of bike insurance in India

Every type of insurance offers advantages and varying degrees of protection. Choosing the right type of insurance for a bike can significantly affect your financial security in case of accidents or theft as well. The choice must depend on your specific needs, budget, and the level of risk you are willing to manage. There are mainly three different types of bike insurance that every two-wheeler owner should consider. They are:

  1. Third-party liability-only bike insurance:

    The Motor Vehicles Act mandates this basic form of bike insurance. It covers legal liabilities arising from injury or death of third parties, as well as damage to another person's vehicle caused by your insured bike. However, this insurance type for bikes offers no coverage for damage to your own bike. It does not pay for replacement or repairs if your bike is damaged in an accident.
  1. Standalone own damage insurance:

    Third-party liability-only insurance leaves a gap that this kind of coverage helps fill. It covers losses to your own bike and provides financial defence against a range of hazards, including, natural events like floods or earthquakes, and man-made incidents such as accidents, theft, riots, and vandalism. Consider getting this coverage alongside third-party liability insurance, even though the latter pays for damage to your bike, as it does not cover damages or losses to others injured in an accident.
  1. Comprehensive bike insurance:

    This policy offers the most extensive coverage. It combines elements of standalone own damage cover and third-party liability. This policy covers damages to your own bike and guards you against damages caused to a third-party or his/her property. Adding different add-ons like Zero Depreciation cover and Roadside Assistance cover can further enhance this coverage.

Conclusion

Choosing the right type of insurance for a two-wheeler is straightforward. First, it is essential to understand how many types of two-wheeler insurance are available. Then, select a bike insurance policy that offers comprehensive protection for your two-wheeler. Knowledge of bike insurance policy types can help you make the right decision when it comes to insuring your vehicle.

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Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

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