Atwo wheeler insurance policyprovides you with the financial shield against the losses or damages incurred on or by your two wheeler. If you do not have a valid two wheeler insurance policy, the cost of all the financial losses, which may incur on or by your bike, would have to be borne by you. So, it is advised to stay legally and financially protected with the shield of good two wheeler insurance policy at all times.

Is Two Wheeler Insurance Mandatory in India For Two Wheeler Owners?

All the motor vehicles plying on the Indian roads must have a valid motor insurance policy as per the Indian Motor Vehicles Act, 1988. It is illegal to ride your two wheeler, bike, scotty, scooter, or moped on Indian roads without having a mandatory third-party liability cover.

It is mandatory to have a valid bike insurance policy as it provides financial protection against unfortunate accidents, which may damage to third-party property, and/or cause bodily injuries to the third-party driver or rider, pillion rider, and/or pedestrians. In such cases, having a liability cover provides financial coverage, the insurance company pays compensation on behalf of the bike owner.

Types of Two Wheeler Insurance Policies in India

There are two types of two wheeler insurance policies:

1. Third-party Liability Cover Only
2. Comprehensive Policy or Package Policy or First-party

Two Wheeler Insurance Third-Party (TP) Liability Cover

Third-party liability bike insurance policy is mandatory in India as per the Indian Motor Vehicles Act, 1988.

Third-party two wheeler insurance policy covers only the damages or loss caused by the insured bike to the third-party either bodily injuries or property. In addition to that, a third-party bike insurance policy also provides a personal accident death cover of amount up to Rs.15 lakh for the policyholder.

However, you need to keep in mind that a TP policy offered by any of the insurance company will not cover any loss or damages incurred to own bike, or theft of the insured bike.

Two Wheeler TP Liability Insurance Coverage:

Third party Liability Coverage: In case of third party bodily injury or death due to the insured two wheeler, the insurance company provides liability cover.

Third party property Damage Coverage: In case of any loss or damage to a third party property, the policy provides coverage up to an amount of Rs. 7.5 lakh.

Personal Accident Coverage: A third-party two wheeler insurance policy covers an owner-driver and optional pillion rider cover.

1. Owner-Driver Personal Accident Cover: In case of a permanent total disability or an accidental death, the policyholder is covered with a sum insured of up to Rs.15 lakh on an additional premium.

2. Pillion Rider Accident Cover: Add a pillion rider personal accident cover, which provides coverage up to the sum insured of Rs.1 lakh on an additional premium.

Personal Accident Cover Table:

Accidental Event	% of Sum Insured
Death	100%
Dismemberment of both the limbs or loss of vision in both eyes or one limb and one eye	100%
Dismemberment of one limb or loss of vision in one eye	50%
Permanent Total Disability	100%

• Own Damage of your two wheeler is not covered. Any damage incurred to the insured bike due to an accident is not covered. The policyholder will have to bear the repair cost himself or herself.
• Accidental damage/ liability/loss happened outside the specified geographical area.
• Damage, liability, loss happened due to invasion, war and other warlike operations.

What is not covered in Liability Cover Only

Comprehensive Two Wheeler Insurance Policy

To protect your two wheeler completely, you will require a comprehensive two wheeler insurance policy. Because it provides a complete financial protection against own bike damages and also any third party loss or damages caused due to the insured vehicle.

You don’t have to worry, if your two wheeler gets stolen, as a comprehensive policy also covers bike theft to the limit of the IDV (Insured Declared Value) in the insurance policy. Moreover, the damage caused to your two wheeler, bike, scooter, or moped, in an accident will be borne by the insurance company.

Two Wheeler Comprehensive Insurance Policy

Coverage and Exclusions of Two Wheeler Comprehensive Cover
1) Own Damage
2) Third-party cover
a) Third-party liability cover
b) Third-party property damage cover
c) Personal Accident Cover:
i. Personal Accidental Cover for the owner-rider
ii. Optional (add-on) Pillion Rider Cover

Coverage of Two Wheeler Comprehensive Policy are:

Own Damage: A comprehensive two-wheeler insurance policy provides financial protection against any damage that may incur due to any man-made or natural calamities.

For instance, if your bike gets burned due to malicious act or gets stolen, you will be compensated under a comprehensive bike insurance policy.

A comprehensive bike insurance policy not only covers bike own damage repair costs but also protects you against  third party liability. With a comprehensive two wheeler insurance you are compensated for both own damage and third party losses.

Inclusions of Two Wheeler Comprehensive Insurance Cover

Under a comprehensive two wheeler insurance policy, your bike is protected, in case if there is any loss or damage as a result of:

• Fire, , self-ignition, explosion or lightning
•  Earthquake, storm ,typhoon, hurricane, flood, tempest, inundation
•  Cyclone, hailstorm, frost, landslide, rockslide
•  Burglary, theft, riot, strike, malicious act
•  Accident by external means, terrorist activity
•  Any damage or loss due to transit by rail, road or inland waterway, lift, elevator or air
•  Extra Coverage if an add-on is attached to the base comprehensive insurance policy

Exclusions of Two Wheeler Comprehensive Insurance Cover

While a comprehensive two wheeler insurance policy covers  damages/losses due to any man-made and natural perils to your vehicle, but there are certain exclusions:

• Any damages incurred when the policy is expired or not active
•  Wear and tear of the two-wheeler due to aging
•  Any electrical or mechanical fault breakdown
•  Riding without valid or proper license
•  Riding under the influence of alcohol, drugs or any intoxicants
•  Accident due to involvement in a criminal or illegal activity
•  Using private two-wheeler for commercial purposes is not covered

Coverage	Third Party Policy only	Comprehensive Policy
Third Party Liability	✓  Covered	✓ Covered
Third Party Property      Damage	✓  Covered	✓ Covered
Personal Accident Cover	✓  Covered	✓ Covered
Own Damage	X   Not Covered	✓  Covered
Vehicle Theft	X   Not Covered	✓  Covered
Add-on Covers    (Extra Protection Shield)	X Cannot be added	✓ Can be added