The insurance products on offer for two wheelers are quite straightforward and, in fact, offer more flexibility over the insurance products available for cars.
By Ankur Agarwal
Insurance is designed to cover your risks and give you peace of mind. Of course, it is not possible to cover all risks in one’s life. However, it may be possible to insure many of those with the wide spectrum of products designed by various insurance companies. Remember that insurance can make your quality of life better as it covers the risks you may face. While it is not a product that you physically see, the fact that you will get covered for a risk you may face or an eventuality that may happen to you makes life easier for you and your family.
Last time, in an article, I had covered the importance of covering the risks that all of us face in our daily lives and how it is important to cover them through various available insurances. Specifically, for car owners, we had talked about the available insurances that make the life of a car owner tension free. This time, we will talk about the insurances that are recommended for a two wheeler owner.
To reiterate, insurance is not a complex concept but to clear out the confusion amongst the few hundred products on offer from the insurance companies, we will talk about them in a simplified manner.
The insurance products on offer for two wheelers are quite straightforward and, in fact, offer more flexibility over the insurance products available for cars. This has been done to make purchasing two wheeler insurance as easy as possible for the customer. Here are some types of insurance plans that a two wheeler owner must have in order to be tension free.
1. Multi Year Third Party Liability: The nature of the third party liability policy for a two wheeler is the same as that of a four wheeler. It comes handy in case of an unfortunate event where there arises a liability for a third party by your vehicle. You must note that it is compulsory to take a third party liability insurance for your vehicle as per law. While a car insurance is typically for one year and is renewable annually, third party liability insurance for a two wheeler can be bought for multiple years.
2. Multi Year Comprehensive Insurance: Also known as package policy, the premium for comprehensive policy is separate and is specifically paid for covering the Owner Damage (OD). This covers the expense you may incur on getting the vehicle repaired or in case of theft. This premium varies for different insurance companies depending upon your vehicle’s make-model, age, history of claims and a few other factors. Similar to third party liability insurance, the comprehensive package policy for a two wheeler can also be purchased for multiple years. This is a great way to save on cost as you may get discounts on the premium depending upon the insurer and also takes away the hassle of renewing the policy every year, should you forget it.
3. Personal Accident Cover: The need for a personal accident cover becomes even more important in case of the two wheeler given the exposure to risk of a two wheeler rider. Even with all precautions like wearing a helmet and following all traffic rules, the risk of accident is all pervasive. Taking a personal accident cover becomes a good way to cover that risk. You must ensure that the cover taken should also be for the pillion rider.
4. Health Insurance / Mediclaim: Again, having a basic health / mediclaim cover ensures that you are protected against any unknown health risk which may not be covered under the above described insurance plans. While the spectrum of coverage can always be expanded as you progress in your life, you must take a basic mediclaim policy. This is available for individuals in the form of individual covers and also in the form of family floater policies that cover a defined number of family members. The coverages are quite wide and one must take the insurance as per the need of the family. Do keep in mind that the needs of the family keep changing as you progress in life. The health insurance should be in line with those needs.
5. Term Life Insurance: This insurance is one of those insurance plans which are relatively low cost and give a high coverage at the same time. Term life insurance gives a death benefit coverage at a relatively low cost. While this is a death benefit policy, there are also add on coverages available that take care of critical illness, or disability depending upon the policy that the insurance company is offering. To protect your family from unforeseen financial issues, this type of insurance can be explored.
Once again, I would advise you to read and check the details of your policy – like your name, address, details of your two wheeler (Registration Number, Cubic Capacity, engine and chassis number etc.) and the Terms and Conditions of the policy carefully. These details become important at the time of making a claim and at the time of renewal. Any exclusions must also be known to the policy holder as they become critical to manage at the time of claim.
A two wheeler can be utilitarian, carrying you to office from home, or be your ride for a cross-country trip. Do remember that you must fulfil your responsibility of having the correct set of insurance plans that make your journey hassle and tension-free. And, as always, ride safe.
-The writer is Director, Girnar Insurance Brokers Pvt Ltd. The views expressed here are personal