In India, three types of two-wheeler insurance policies are offered by all the general insurance companies.

1. Third – Party Insurance

As per the Motor Vehicles Act, it is mandatory for every two-wheeler owner to have a third party insurance. This coverage pays for any damage to third party property, vehicle, or person.

Not just legally but on humanitarian grounds, it becomes your responsibility to bear the damages caused to the person you are involved in an accident with. When you opt for a third-party two-wheeler insurance then your insurer will cover the costs and damages to the Third-party insurance is mandatory in India. It is a statutory requirement for all Indian two-wheelers to have at least a third-party two-wheeler insurance policy to be able to legally drive on Indian roads.

If you meet with an accident, then it becomes your responsibility to bear the damages caused to the two-wheeler and the injuries caused to the person you are involved in the accident with. When third-party two-wheeler insurance is taken then the insurer will cover the costs and damages to the third-party.

But Third-Party Bike Insurance does not cover your own damage and consequently an own damage bike insurance should be taken to insure your own damage.

2. Own Damage Two-wheeler Insurance:

When you are involved in an accident then the compensation for your own injuries and your own two-wheeler damages are also necessary. Thus, Own Damage Two-wheeler Insurance is optional but it is extremely valuable.

An own damage two-wheeler insurance policy covers the cost of damages to your two-wheeler on account of:

1. Natural calamities like floods, earthquakes, hailstorms, fire, cyclone, tempest, lightening, landslide, hurricane, typhoon, etc.
2. Man-made calamities like vandalism, riots & strikes, terrorist attacks, etc.
3. Damage to the belongings in the two-wheeler
4. Theft or malevolent acts.

3. Add-on Insurance Cover

1. Zero depreciation

Zero depreciation is a two-wheeler insurance add-on. At the time of claims, this add-on puts the liability of paying for depreciated parts of your two-wheeler on the insurance company, instead of you.

2. 24/7 Roadside Assistance and Towing

This add-on makes sure that the insurance company makes an arrangement for the policyholder’s two-wheeler to be towed and help him reach his desired destination, in the case of a vehicle breakdown.

3. Engine Protect Cover

Monsoon season is the season where an engine is at risk the most. In waterlogged areas, the water enters the engine and damages it resulting in engine breakdown.

Engine is not usually covered in the normal two-wheeler insurance policy but this add-on helps you to bear the expenses for the replacement of the engine through the insurance company.

Why protect the engine?

• Most expensive part
• Repairing it can be a real costly affair
• Significant labor and material charges

The add-on shields against engine damage due to:

• Leakage of lubricating oil
• Damage to gear box
• Water ingression
• Hydrostatic lock – When you repeatedly try to start a moist engine, it can cause an engine failure

4. Consumables Cover

Consumables are the parts of the two-wheeler that are entirely consumed and cannot be repurposed. Lubricants like engine oil, air conditioner gas, brake oil, etc and nuts, bolts, washers, screws, etc are considered as consumables. They are subject to constant wear and tear.

In fact, this consumable add-on policy covers every consumable item except fuel.

5. No Claim Bonus Protection

This feature protects the amount of sum insured increased through No Claim Bonus (NCB) when there is a claim in the coming years. This helps in keeping the bonus intact.

6. Tyre Protection Cover

Tyre protection covers the tyre of the two-wheeler in all situations. It is essential because tyres these days are not cheap and go through a lot of wear and tear on the unforgiving India roads.

7. Return to Invoice

This add-on in your policy helps you to get the actual value without registration charges, road tax and depreciation when a claim is made and your two-wheeler is totally damaged. In case of theft or total damage you will get full reimbursement on the invoice amount of the two-wheeler.

Normally, for a new vehicle insured for the first time, the Private vehicle is insured at 95% of its Manufacturer's List Price. This clause will enable you to insure your new vehicle for the full 100% of the List Price. In case of a Total Loss or Theft of the vehicle, the full invoice value of the vehicle, that was insured, will be considered while assessing the loss.