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What are the different types of covers for two wheeler insurance policy?

You do so much research when you plan to buy a two-wheeler vehicle. A two-wheeler vehicle is one of the most favoured type of vehicles in India, which is best known for running smoothly on crowded streets. But at the same time, these two-wheelers are prone to collisions, accidents, and other unfortunate events that can damage the vehicle. Hence, to save yourself from bearing the expenses of repairing your vehicle, it is important to invest in a good two-wheeler insurance plan. To do so, you must know the different options available in scooter and bike insurance policy.

Two-wheeler insurance companies offer various insurance policies to cover risks related to two-wheelers. The risks faced by a vehicle vary based on its type, its location, its utility, and many other factors. Hence, to fit the different requirements of different people, insurance companies offer special two-wheeler plans.

Let’s see the different options available in two-wheeler insurance policies so that you can choose what’s best for you.

A basic two wheeler insurance policy can be categorized into one of these three types:

  1. Third-party insurance plan– A third-party insurance plan for two-wheelers is the basic responsibility of every Indian citizen owning a two-wheeler. This is a basic insurance policy that provides cover against third-party liabilities. For example, if there is an accident of the policyholder’s vehicle that damages the vehicle, life, or property of any third party, then it can be covered by a third-party insurance policy. No other risk is covered under this insurance plan.
  1. Direct compensation-property damage (DCPD) – A direct compensation-property damage (DCPD) or own-damage insurance is a policy that covers the policyholder against the damage caused to his/her vehicle. This bike insurance policy only covers the cost of repairing the insured vehicle’s damage and does not cover the driver’s health or condition. Damages caused to the vehicle due to incidents like road accidents, natural calamities, or theft are covered specifically under this policy.
  1. Comprehensive plan – A comprehensive policy is a package that provides cover for third party, own-damage of the insured vehicle as well as the rider. It is like a wholesome bike insurance policy that covers all possible risks related to two-wheelers.

Apart from the risks covered under a basic comprehensive two wheeler insurance policy, there are more risks based on various factors faced by the vehicle. Comprehensive insurance policies offer riders that are add-ons to cover such special risks. You can opt for a specific add-on by paying extra bucks on premium. Here are some popular add-ons preferred by people.

  • Roadside assistance cover – This add-on comes handy in case you are stranded on the road due to the breakdown of your vehicle. In such a scenario, this add-on will cover for the roadside assistance needed.
  • Zero depreciation cover – Typically, an insurance plan pays you the coverage amount after deducting the depreciation amount. Opting for zero depreciation add-on will help you eliminate depreciation. Thus, you will receive the entire coverage. However, this cover can be purchased only for vehicles that are not older than three years.
  • Cover for loss or theft of key – People often face problems of getting their keys lost or stolen, and then the keys need to be replaced. With this add-on, a policyholder can get cover in order to replace the key.

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