Given the Indian road conditions and the world-renowned jams, a two-wheeler makes a sensible and popular choice for commutation with many people. But it also carries the highest risk of accidents and can cause serious damage to your vehicle as well as your body. Getting the two-wheeler repaired can be a highly expensive affair that can take your financial planning and monthly flow down the drains.
The best way to safeguard yourself against this disaster is by buying Two-Wheeler Insurance. Here, we would look into its various aspects.
Defining Two-Wheeler Insurance
The Indian law makes it mandatory for any two-wheeler owner to have the vehicle covered by a policy. It is essentially an agreement between your chosen insurance company and you. It is aimed to safeguard you financially and legally in case of an accident involving a third party, a collision, damage caused by natural disasters like floods, earthquakes, etc. The policy is available both for personal and commercial vehicles.
Types of Two-Wheeler Insurance
There are primarily two types of two-wheeler insurance cover that you can purchase. They are:
- Third-party two-wheeler insurance cover
The purchase of this insurance cover is mandatory by law under the Motor Vehicle Act, 1961. Under this insurance plan, the insurance company would bear all the damage caused to the third party due to an accident with you. This relieved you of the financial drain that you would have had to give away as compensation to the third-party.
It might be pointed out that the policy only covers loss and damage inflicted on the third-party due to an accident or a collision. But it would not cover any damage happening to your two-wheeler or any harm happening to you due to the accident.
To safeguard your interests, you can purchase third-party insurance for Mini Business Lease with a personal accident cover as well. The maximum coverage that you can seek here is Rs. 15 lakhs. Under this cover, you get covered for any injuries or even death in case of an accident. You can get even your co-rider covered under this plan. It is strongly recommended to add this cover to your third-party insurance as you can get 100% compensation in scenarios of any kind of permanent disability like loss of eye-sight, mutilation of limbs, etc. and even death.
- Two-wheeler comprehensive insurance policy
It is the best policy that you can buy for your Mini Secondhand Car. This policy protects and covers your two-wheeler from all kinds of mishaps, both natural and man-made. The great thing is that the policy has the third-party insurance cover included inside it. Let’s understand all that is covered by this kind of policy a little better.
- Natural events or calamities: It refers to all those unforeseen calamities that are beyond the control of mankind. It includes events like fire, floods, earthquakes, lightning, tsunami, hurricanes, typhoons, frost, explosions, etc. You get covered for all damages arising out of such disasters.
- Man-made calamities: It refers to damages caused to your two-wheeler because of human intervention. Accident types covered here includes thefts, vandalism, collision, strikes, etc. Apart from these damages, the cover also includes any damages caused to your vehicle while it is being transferred via rail, road, water or any other means.
- Personal accident coverage: As already stated, road accidents involving two-wheelers are the highest. This means the risk of personal damage because of the accident is also high. The coverage under this is the same as described for it under the third-party insurance plan. You can also procure a pillion or coverage for your co-rider here.
Understanding Insured Declared Value (IDV) and its Influence
Next, we come to understand what is IDV or insured declared value. It is an integral part of all two-wheeler insurance and plays a major role in the calculation of your premium amount. Another thing to note that this value comes to play only in the scenario of a comprehensive policy. The third-party insurance premium is based on the vehicle type and category.
It is the estimated value of the two-wheeler and the maximum sum insured that you can get. A higher IDV means a higher premium because of which most try to quote a lower IDV for their two-wheeler. But it should be avoided as it might prove a wrong move in case of any claim. The age and the value of the two-wheeler are considered by most insurance companies. The IDV decreases with age due to depreciation and thus the premium amount gets decreased year after year.
There are plenty of benefits to purchasing a two-wheeler insurance plan. However, one must be vigilant, do thorough research and then make a judicious choice amongst the plethora of insurance plans available.