What is Bike insurance and its benefits

What is a Bike insurance policy?

Two-wheeler insurance is an insurance plan focused on protection and coverage for bikes. It covers the cost of repairs in the case of accidental damages to your bike. Apart from accidents, it also provides financial security from incidents like thefts, natural disasters, vandalism, etc., and third-party liabilities.

What are the different types of bike insurance policies?

Different people have different requirements when it comes to insurance coverage for their two-wheeler. To cater to their different needs, we have three main types of two-wheeler insurance.

Comprehensive policy

This two-wheeler insurance plan protects the owner from the cost of accidental damage to his vehicle by a third party as well. You can also opt for addons to enhance your coverage under such cover by paying a nominal additional premium. It also provides you a personal accident cover of ₹15 lakh for accidental death and disability at a small additional premium.

Two-wheeler insurance or bike insurance is a plan that protects the owner of the bike from any possible loss in the event of an accident, theft, or natural calamity. Currently, a third-party two-wheeler insurance policy is mandatory under the Motor Vehicles Act 1988. It is advisable to buy bike insurance as it covers damages caused to your two-wheeler due to accidents, natural calamities, or third-party accidents or liabilities. It will help you cover any unforeseen expenses.

What is bike insurance?

A Two-wheeler insurance policy assists you in financial coverage against loss or damage caused by you or your vehicle.

Without a valid bike insurance policy, you will have to bear all the financial burden on account of any loss or damage caused by your two-wheeler.

Why is two-wheeler insurance necessary in India?

As per the Indian Motor Vehicles Act, 1988, all motor vehicles plying on Indian roads must have a valid insurance policy. It is illegal to ride your two-wheeler on Indian roads without third-party liability cover. A liability cover is mandatory for riding your bike on Indian roads.

Having an insurance policy is important and necessary as it provides financial protection against unfortunate accidents causing damage to the property of the insured vehicle or third party, bodily injury to the rider or rear seat rider or pedestrians, etc.

With a two-wheeler insurance policy

You will not suffer any financial stress: Two wheeler insurance policy provides a financial shield in case of theft of your vehicle or any damage caused or caused to your vehicle.

Since on Indian roads, It is mandatory to have an insurance policy for riding, so it is advised that you keep a photocopy of a valid insurance policy to avoid paying the penalty.
You will get personal accident cover: In case of accidental death or total permanent disability, The two-wheeler policyholder is covered with a sum insured up to Rs.1 lakh.

Since you know that you are financially insured against the repair cost of damages caused by a bike accident, then definitely Your mind will be at peace.

Types of two-wheeler insurance in India

Inclusions and Exclusions of Two-Wheeler Insurance In India There are generally two types of two-wheeler insurance policies:

  • Third-Party Liability Insurance or Liability Only Cover~ Comprehensive policy or package policy

Third-Party Liability Insurance

Third-Party Liability Insurance is legally mandated in India. This policy only covers damage or loss caused to the insured bike to third parties or property. It also gives personal accident cover for the owner of the bike. However, none of the insurers will cover for loss, damage, or theft of the insured bike.

Comprehensive policy

A comprehensive policy that covers own damages and third-party liability. It covers your bike even if it is stolen. A comprehensive policy that provides a complete protection package against any natural calamities and against man-made calamities such as earthquakes, floods, electricity, riots, earthquakes, and terrorism, etc.

Two Wheeler Third Party Liability or Liability Cover

Coverages and Exclusions Two Wheeler Liability Cover Only

The third-party policy covers any legal liability cover, which may be due to the insured bike.

Third-Party Bike Insurance provides you financial protection in case of damage or injuries to any other person or their property due to your two-wheeler. This is a basic and compulsory bike insurance policy as per the Motor Vehicles Act 1988.


How many types of bike insurance are there?

Wheeler insurance plan that provides coverage against damage caused to the bike or bike rider due to an accident, theft, or natural calamities.

  • Third-Party Accident Cover
  • Third-Party Total/Partial/Temporary/Permanent Disability Cover
    Third-Party Property Damage Cover

What is meant by bike insurance?

Two-wheeler insurance or bike insurance is a plan that protects the owner of the bike from any possible loss in the event of an accident, theft, or natural calamity. At present, a third-party two-wheeler insurance policy is mandatory under the Motor Vehicles Act 1988.

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