Bike insurance is compulsory, and no owner can escape this requirement. The Motor Vehicles Act of 1988 lays down this requirement thereby ensuring all two-wheeler owners have insurance coverage. When buying a bike insurance policy, there are two options to choose from—a third-party cover or a comprehensive cover.
A third-party bike insurance plan is also known as liability-only policy for the coverage it offers against third-party legal liabilities. Accidents resulting in damage to third-party property or even injury to such third person is covered under this policy. Also, a third-party cover is the bare minimum insurance cover that one needs to buy. However, due to its limited scope, people often choose to buy the comprehensive policy. A comprehensive plan provides protection for the repairs required in the event of damages to your car. Accidents do not only cause damages to third parties, but also your car.
However, if you are someone who has a third-party plan and wish to upgrade to a comprehensive plan, there is some good news for you. You now no longer need to wait till the two wheeler insurance renewal to upgrade your policy coverage. Standalone own-damage plans can be opted in addition to your existing third-party coverage. This standalone policy, unlike a comprehensive plan, does not include both, third-party and own-damage cover bundled into one. But it only provides the own-damage cover. Thus, without availing a bundled service of comprehensive coverage, you can now purchase a standalone own damage (OD) cover to supplement your third-party policy therefore enhancing your policy scope. * Standard T&C Apply
Why were standalone covers introduced?
From 1st September 2019, own damage cover can be purchased without the need to buy a comprehensive bike insurance policy. The primary reason for introduction of a standalone plan was to make available an insurance cover for the damages sustained by policyholders. Since a third-party plan is the minimum requirement, the buyers do not need to undergo the entire purchase process all over again but instead just buy an own-damage policy.
Who should consider buying a standalone own-damage plan?
- Standalone plans are great value addition for those policyholders that have an existing third-party bike insurance policy and now wish to buy added protection for own damages. However, you must keep in mind that such standalone OD plan increase the overall bike insurance price since it offers a 360-degree protection, not only from third-party liabilities, but also damages to your bike.
- Next, if you have recently purchased a bike with the mandatory third-party coverage, you can also purchase the standalone own-damage policy from a different insurance company. This enables you to avail the best policy features according to your preference of insurance company.
A standalone policy, apart from increasing the insurance scope, also offers the facility to customise your insurance plan. This is possible using the varied add-ons that can be loaded on to your insurance coverage. While the list of add-ons is long, selecting useful add-ons helps to enhance the policy’s scope even further.
Hence, if you feel that you need the benefits offered by a third-party plan are limited, it is always an option to purchase a standalone OD cover. Also, keep in mind that insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.