What to keep in mind when buying two wheeler insurance?

financialexpress.com:

As two-wheeler ownership continues to rise in India, ensuring adequate insurance coverage is paramount for safety and financial security. Two-wheeler insurance not only provides protection against unforeseen accidents but also complies with legal requirements mandated by the Motor Vehicles Act, 1988.

However, with a plethora of insurance options available in the market, selecting the right policy can be a daunting task. Here’s a guide on what to keep in mind before buying two-wheeler insurance.

Two-wheeler insurance typically comes in two variants: third-party liability insurance and comprehensive insurance.

1. Third-Party Liability Insurance: This type of insurance covers damages caused to third parties, including bodily injury, death, or property damage. It is a mandatory requirement under the law for all two-wheeler owners. However, it does not cover damages to your own vehicle.

2. Comprehensive Insurance: In addition to third-party coverage, comprehensive insurance provides protection against damages to your own vehicle due to accidents, theft, natural calamities, fire, and vandalism. While not mandatory, comprehensive insurance offers extensive coverage and is highly recommended for comprehensive protection.

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Assess your coverage needs based on factors such as your bike’s value, usage pattern, and budget. While third-party insurance meets legal requirements, comprehensive coverage offers added peace of mind by safeguarding against various risks.

IDV represents the maximum sum insured in case of total loss or theft of your vehicle. Ensure the IDV accurately reflects your bike’s current market value to avoid underinsurance or overpayment of premiums.

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