Motorcycle Insurance - Things to know
Motorcycle insurance can be defined as the insurance of bike and any liabilities that would arise out of its use. It can be considered as a way of sharing the risk of riding with your insurance company. It is compulsory to insure your motorcycle against third party liabilities, however, this does not in any way, mitigates the need to insure your motorcycle itself.
According to the Road Transport Act 1987, insurance of cars and motorcycles is mandatory, and it needs to be renewed annually. It provides the owner with the financial protection in the event of loss, damage or accidents of the motorcycle including protection against any third party injury or damage to the vehicle.
Motorcycle insurance covers -
- Any physical damage or death to a third party in the event of an accident
- Any damage caused to the third party’s vehicle due to an accident
- Any damage caused to the motorcycle in the event of fire, lightning or explosion
- Damages to the motorcycle caused due to housebreaking or theft of the vehicle
However, it is worth noting that motorcycle insurance largely depends on the type of insurance chosen at the time of purchase. Alongside standard coverage to the two-wheeler, companies also provide utilitarian add-ons that can be hooked with the basic coverage policy for extra protection.
The add-ons include -
- Any damages to the motorcycle caused by the natural disaster
- Any damage to the vehicle caused in the event of riots, strike or civil commotion
- Any damage caused to the accessories of the motorcycle
- Any liability claim by the pillion passenger in the event of an accident
Not all motorcycle insurance coverage allows the owner to have the following add-ons. On the other hand, some of the insurance companies provide more add-ons to the insurance package. It is vital for the owner to choose the right motorcycle company that would provide customisations as per the requirement of the owner.
Notably, there are three primary motorcycle insurances discussed below -
Third Party: This is the most basic policy, which covers loss of life or physical damage caused in an accident. However, this protection plan does provide self-protection but to the third party only.
Third party, Fire or Theft insurance: This type of insurance covers claims against the owner by a third party in the event of an accident, which results in physical damage, death, etc. caused by the vehicle. Besides, it also covers the loss or theft of the vehicle or damage caused by fire.
Comprehensive Insurance: This type of insurance covers a wider field compared to the other types of policies. It covers third party, fire, theft plus any damage caused to own motorcycle as well. It covers accidents, fire, theft of the vehicle, etc.
No Claim Discount (NCD)
In addition to every insurance, this discount will be entitled to the owners of the motorcycle who have not claimed their insurance during the preceding period. This discount increases over the year but with the claim of the insurance, the discount will be abandoned.