The Motor Vehicle Act of 1998 makes it mandatory for all owners of two-wheelers in India to purchase a bike insurance policy. According to this act, the barest minimum bike insurance that all owners of two-wheelers should buy is a third-party bike insurance cover.
However, a third-party two-wheeler insurance cover has coverage limitations, be it from providers like Acko two wheeler insurance. Because of these constraints, a comprehensive bike insurance plan is the best you should get.
This write-up will explain what comprehensive insurance covers and why you should buy it for your motorbike over other types of insurance.
Third-party bike insurance limitations
Before we begin with why you should purchase a comprehensive bike insurance policy, it is worth mentioning the limitations inherent in a third-party two-wheeler plan.
The most obvious limitation is that this plan only caters for third-party liability and expenses arising from an accident caused by your insured two-wheeler to a third party. The policy does not cover your personal injuries or any damage to your insured motorbike. If a policyholder dies in an accident, the insurance policy does not cover any expenses resulting from their death.
What is a comprehensive motorbike insurance cover?
Unlike a third-party bike insurance plan, comprehensive bike insurance offers you a much wider range of coverage. Typically, this plan will include third-party liability coverage and protection from damage caused by either natural events like storms, floods, and fires or man-made reasons, such as; theft, vandalism, and accidents. A comprehensive motorbike insurance plan can provide coverage for your bike, personal health and wellbeing.
Why buy a comprehensive bike insurance cover?
There are many reasons why you should buy comprehensive two-wheeler insurance. Below are five significant reasons to consider:
#1. Best insurance option for luxury bikes
If you own a high-end, luxury motorbike, you should purchase a comprehensive two-wheeler insurance plan. This way, you are protected from both personal and third-party expenses in the event of an accident.
Also, you are protected from natural and man-made catastrophic events, such as fire, flood, storms, theft, riots, and vandalism. If you intend to ride your luxurious motorbike frequently, purchasing a comprehensive insurance plan rather than a third-party insurance cover would be wise.
#2. Greater coverage
Comprehensive two-wheeler insurance offers you much greater coverage than a third-party insurance plan. Apart from protecting you from third-party liability, the policy protects you from personal injuries, death and damage to your bike.
#3. Availability of a multi-year plan with all its benefits
You can buy a multi-year comprehensive bike insurance plan, such as a 3-year motorbike insurance policy. It saves you the hassle of having to renew your cover every year. Also, a multi-year plan can lock in a specific premium payment for the cover duration. It ensures that you are protected from any premium payments hike during your two-wheeler insurance plan.
In addition, insurance companies offer premium discounts on multi-year plans, lowering your insurance costs in the long term.
#4. No-Claim Bonus (NCB)
If you do not file any claim on your insurance cover in a financial year, your insurer can offer you a no-claim bonus the following year. With a multi-year comprehensive two-wheeler insurance policy, you can earn a much greater NCB than a single-year comprehensive motorbike insurance plan.
Also, if you choose to terminate your current insurance plan, the NCB is transferable to any new comprehensive two-wheeler insurance cover you wish to buy.
#5. Opportunity to enjoy added perks
Another reason you should buy comprehensive bike insurance is the opportunity to benefit from added perks like riders or add-ons, such as Engine Protection cover, Zero Depreciation cover, Return to Invoice, Consumables cover, and many more.
Many insurance companies offer their policyholders value-added services like pick-up, drop-off, vehicle towing, lodging, and entertainment. However, these value-added services are often contingent on prompt premium payments on a multi-year bike insurance plan.
It is essential to ask yourself this simple question – ‘what bike insurance policy would be best for me?’ If you own a run-of-mill, cheap bike, then a third-party two-wheeler insurance plan may suffice. Also, if you intend to sell off your bike at some point, you can settle for a mandatory third-party insurance cover.
However, you should consider buying comprehensive bike insurance if your bike is expensive and you are looking for a holistic one-shot cover.
Nothing beats the benefits and added perks you will gain from buying a comprehensive motorbike insurance plan. You can enjoy low insurance costs and premium payments over time. You can also benefit from premium discounts and value-added services like pickup, drop-off, bike towing, lodging, and entertainment. Comprehensive bike insurance also offers you NCB, Zero Depreciation, Engine Protection and Consumables covers, amongst other tasty perks.
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