With thousands of on-road deaths taking place every year as reported by the Ministry of Road Transport and Highways, and innumerable number of people injured temporarily or permanently following an accident, it is important to take precaution. Though a third-party two-wheeler insurance policy is mandatory as per the Motor Vehicles Act, 1988, it might not be sufficient. For those new to motor insurance and looking to avail one, a third-party motor insurance policy covers the cost of the damages caused to the third-party involved in an accident. For a third-party insurance policyholder, the policy does not cover the damages met to his/her own vehicle, nor does it offer coverage for personal or medical expenses. In such a case, the policyholder will have to cover the expenses from his/her own pocket. On the other hand, a comprehensive two-wheeler insurance policy covers damages caused to both parties (first and third), and offers compensation in case of death as well as coverage for medical expenses. In addition, a comprehensive motor insurance policy is not limited to on-road accidents, in fact, a comprehensive two-wheeler insurance policy also offers coverage for a two-wheeler that is damaged as a result of a natural disaster or under various other circumstances. Let’s look into the advantages of a comprehensive two-wheeler insurance policy.
If you’ve been riding around with a third-party two-wheeler insurance policy, listed below are some reasons why you should upgrade to a comprehensive two-wheeler insurance policy:
Repairing your vehicle after an accident is certainly a costly affair. If you do meet with an accident and have a third-party two-wheeler insurance policy, then you would need to repair your vehicle at your own cost. However, a comprehensive two-wheeler insurance policy will cover the damages caused to your vehicle depending on the insured declared value (IDV) or the depreciation factor of your vehicle. The IDV is determined by the age, model, condition of the vehicle, etc. In short, coverage for repairs of your vehicle following an accident is only possible if you have a two-wheeler comprehensive insurance policy.
If the policyholder is injured following an accident, the two-wheeler comprehensive insurance policy will kick in to cover the medical costs for a specific time. This too will reduce the financial burden of the policyholder if one meets with an accident.
If an accident leads to disability - temporary or permanent - then the comprehensive insurance policy will kick in to cover the medical cost up to a certain point.
As already mentioned, a comprehensive two-wheeler insurance policy will offer coverage to the third party involved in the accident as well. A comprehensive insurance policy will cover the damages caused to the vehicle of the third-party and in addition, it offers coverage for medical expenses if the accident leads to injury or disability of the third party.
If in case the bike is damaged as a result of a natural calamity, a flood for example, a comprehensive insurance policy will cover the damages caused to the vehicle up to the insured declared value (IDV) of the two-wheeler.
If your bike is stolen or cannot be repaired as it is deemed as a total loss, then the comprehensive insurance policy will cover the cost based on the insured declared value (IDV) of the two-wheeler at that point.
While a third-party insurance policy is inexpensive, it surely will not come to your aid in a precarious situation involving an accident. As highlighted above, a comprehensive insurance policy aims to give the policyholder and the two-wheeler vehicle owner as well as the third-party complete coverage following an accident or a natural calamity. Two-wheeler insurance companies now offer multi-year insurance policies for two-wheelers at a discounted premium, to avoid the hassle of policyholders having to renew their insurance policy every year.
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