When you buy a bike you treat it like your own baby. You take care of it, wash it weekly, take your loved ones for a ride. It is one of the most important parts of your life. However, it is important to keep your two wheeler safe and secured. A two-wheeler insurance policy provides a financial security to your bike or scooter against any physical damage due to an accident or against any perils such as - fire, storm, flood, theft, or against third party liability.

Let us understand what is generally covered under a motor insurance policy:

A comprehensive motor insurance policy is divided into 3 sections:

Section 1 - own damage

An own damage cover is an extensive policy which offers the insured against loss or damage to the vehicle insured along with a third party cover for the below perils:-

Following perils are covered under a comprehensive policy:

• Accidental damages caused by external means
• Fire, explosion, implosions, self-ignition, lightning
• Natural calamities: flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost.
• Whilst in transit by road, rail, inland waterway, air, lift or elevator.
• Act of terrorism
• Riot and strike, malicious damage
• Burglary, theft, housebreaking
• Earthquakes (fire & shock damage)
• Landslide & rockslide
• In this section, additional protection on payment of extra premium is available against:

A. Extra fittings like tape recorders, air-conditioners, fans etc.

B. Personal accident benefits of passengers.

C. Wider legal liability under common law for employees engaged in Operation of vehicles such as paid driver and cleaner as also six Coolies/ bonafide employees carried in/on good trucks.

Section 2: third party liability

Third party liability covers all the damages and injuries caused by your vehicle with you at the deficiency. It pays for the loss and damage caused to a life or property and thus spares you from the huge compensation which you would have been obligated to pay otherwise. In india, this cover is legally mandatory under the motor vehicles act.

Benefits & features of third party insurance policy for your vehicles:

1. Death or bodily injury to a third party
2. Damage to a third party property
3. Accidental death of the vehicles owner or driver
4. Permanent total disability suffered by the vehicle owner or driver.

A. Third party injury & property damage: a third party liability cover is as per the requirements of the motor vehicle act, 1988. The insurer will indemnify the insurance against all claims which he may become legally liable to pay to the third parties for injury, death or property damage. The insurer shall be reimbursed the legal cost and expenses incurred by such third parties and recoverable from the insured. In addition, the expenses related to defence cost incurred by the insured are also reimbursed.

• Liability for death or injury to third parties- this means that you are insured against death or injury (caused by your vehicle) to pedestrians, Occupant of other vehicles, and outsiders other than passengers, for unlimited amounts. Passengers of private vehicles and pillion riders are also deemed covered.
• Liability to employees connected with operation of the vehicle- this means you are insured against death or injury (caused by your vehicle) to the vehicle's drivers, cleaners, conductors, Coolies etc. , employees used in the operation of the vehicle.
• Liability to passengers carried in the vehicle for hire or reward - this means that as an owner of a taxi, bus or auto - rickshaw, you are insured against death or injury (caused by your vehicle) to the passengers

Section 3:Personal accident cover for owner/ driver

The company will pay a compensation for bodily injury/ death as mentioned below:-

1. Personal accident cover for driver/owner which is compulsory in case of cars owned by individuals and where the owner is duly licensed to drive the vehicle.
2. Personal accident cover for occupants
3. Loss of accessories.
4. Cover for paid driver.

Pa coverage:

• Personal accident owner driver cover (two wheeler) compulsory - rs. 1lacs

Coverage

1. Death-------------------------------------- 100% csi
2. Loss of 2 limbs --------------------------100% csi
3. Loss of 1 limb---------------------------- 50% csi
4. Permanent total disablement ------ 100% csi

Exclusions under a motor insurance policy

The following contingencies will not be covered under the motor insurance policy:

• Wear and tear and depreciation
• Not having a valid driving license
• Accident taking place beyond the geographical limits. However, the limit can be extended to bangladesh, bhutan, nepal, pakistan, sri lanka & maldives on payment of extra premium.
• Mechanical or electrical breakdowns, failures or breakages
• Theft of accessories if the vehicle itself is not stolen and
• Consequential loss
• Contractual liability
• Damage to tyres and tubes unless the vehicle is damaged at the same time when the liability of the company is limited to 50% of the cost of replacement
• Any accidental loss or damage suffered whilst the insured or any person driving with the knowledge and consent of the insured is under the influence of intoxicating liquor or drugs
• Compulsory deductibles under a private car policy (at the time of claim): a compulsory deductibles amount is a fixed amount which is charged to the customer whenever a claim arises. As per irda, the amount charged for a private car & 2 wheeler is as below:-

  up to 1500 cc ------- rs. 1,000/-

  above 1500 cc------- rs. 2,000/-

  two wheeler -------- rs. 100/-

Subject to deduction for depreciation at the rates mentioned below in respect of the parts replaced:

1. For all rubber/ nylon/ plastic parts/ tyres and tubes, batteries and air bags - 50% depreciation
2. For fibre glass components - 30% depreciation
3. For all parts made of glass - nil depreciation

Rate of depreciation for all other parts including wooden parts will be as per the age of the vehicle:

Towing charges:

In the event, if the vehicle is disabled as a result of damage covered under the policy, the insurer will bear the cost of protecting the vehicle and removing it the nearest garage. A reasonable cost is paid to the insured which is limited to a maximum of rs. 300 (two-wheeler).