What are the Advantages of Buying a Comprehensive Two-Wheeler Insurance Policy?
With the increasing traffic situation riding a bike without safety precautions is like throwing caution to the wind. Be it safety gear like or helmet or an insurance cover for your bike, and both are equally important and mandatory by the law. Once you have shortlisted your new bike, the next step is to buy an insurance cover for your bike. There are two types of insurance policies that you can buy – third-party and comprehensive plans.
The Motor Vehicles Act of 1988 makes it mandatory to have at least a third-party two wheeler insurance policy, whereas a comprehensive plan is an optional upgrade. The new regulations make it mandatory for new vehicles to have only one year of comprehensive policy. For the balance duration, it is a choice between a third-party plan and a comprehensive plan.
Comprehensive policies are also known as ‘package’ policies wherein it provides complete coverage for any losses or damages to your bike. Since third-party or liability only plan offer limited coverage, it is advisable to purchase a comprehensive plan. Here are some of the benefits of a comprehensive policy –
Advantages of comprehensive two-wheeler insurance plan
No insurance plan gives mental peace unless it encompasses all possible situations that your bike can face. A comprehensive plan does that exactly without you having to worry about damages or accidents. Here are some of the perks of buying a comprehensive insurance cover –
A package policy offers coverage for human-made perils like theft, burglary, riots, and more.
Any damage to your vehicle due to natural calamities like floods, earthquakes, hurricanes, etc., that are beyond your control is also included in the policy coverage.
Damages to your bike:
Comprehensive policy coverage extends to protect damages to your vehicle too. Unlike third-party plans, comprehensive coverage does not limit the extent of its coverage to third-party liabilities but instead extends to own damages too. If your bike is irreparable, the insurance company pays the IDV or insured declared value which is the approximate market valuation of your vehicle.
Personal accident cover:
A package insurance coverage not only covers damages to your bike but also any injuries faced by you or any other rider of the vehicle. This coverage does not require the rider to be the policyholder but must have a valid driving license. Any medical assistance in case of injuries sustained in an accident is covered under this cover.
Coverage for death or disability:
Using a comprehensive cover, the policy also includes death and disability benefits. Comprehensive plans prove beneficial by providing financial assistance to dependents if the rider meets with an accident leading to the demise or even disability. This coverage is beneficial if the rider of the vehicle is the sole breadwinner of the family.
Lastly, your policy coverage can be customized using the various additional riders. Although these add-ons increase the two wheeler insurance price, it benefits the long run by providing coverage that even your comprehensive plan is limited to.
Thus, select a comprehensive cover for the above-mentioned benefits. If you are confused between the various comprehensive plans, a two wheeler insurance premium calculator can help arrive at a cost-benefit analysis, i.e., compare the policy benefits with the premiums charged.