Any bike rider purchasing a bike insurance should also opt for Comprehensive Bike Insurance for themselves. A Comprehensive Bike Insurance policy is a combination of Own Damage (protecting your vehicle) and a Third Party Liability cover.
When you buy two wheeler insurance for your bike, Third Party Liability cover is mandatory as per The Motor Vehicles Act, 1988. This cover includes any damage caused to the third person/ property and personal Accident Cover in case of death or disability of the owner-driver. The owner of the insured bike also has the option to purchase an additional personal Accident Cover for himself as well as the pillion rider.
An Accident Cover is nothing but an add-on. This add-on assures certain compensation to the owner/pillion rider of the insured two-wheeler, if the person was injured, leading to disablement, or suffered a loss of life during a road accident.
- Why Should I Get an Accident Cover?
- How Do I Benefit From A Personal Accident Cover?
- Can I Buy Accident Cover For Someone Else?
- Types Of Accident Covers – A Recap
- What Kinds Of Liabilities Do Accident Covers Compensate For?
- What Is Excluded in the Accident Cover
- What Is the Claim Procedure for Bike Insurance Policy?
Why Should I Get an Accident Cover?
You should buy an accident cover to be able to treat your injuries even if you are facing financial crises or as a compensation for your family in case of death.
Riding a two-wheeler is risky in terms of your safety on the road. On an average, it is estimated that in India we lose one life every four minutes due to road accidents. 25% of such deaths are associated with two-wheelers.
You need an Accident Cover for yourself and the pillion rider, not only to get your bike repaired but also in case of death/injuries to you/pillion rider.
Accident Cover For A Third-Party
Your insurance company will pay for the cost of treatments of the third party person in case he/she was injured in an accident involving your bike. In case of death of the third-party, due to the insured bike, his/her family will be given a compensation by your insurer.
The limit of compensation for Third-party property damage is Rs. 7.5 lakhs. Whereas, the compensation for physical injuries, which includes disability and death of a third-party person, is unlimited.
Accident Cover for Own Damage
If you buy a Comprehensive Bike Insurance policy, you will automatically get an Accident cover for yourself, as it is a part of your policy. If you have a basic bike insurance policy i.e. Third-Party Liability Bike Insurance policy, you will not be covered for Own Damage. In this case, you need to buy a Personal Accident cover to financially safeguard yourself in the event of an accident.
Below are the conditions to consider before buying a personal accident plan:
- You are the registered owner of the bike.
- Your name appears as the insured on your bike insurance policy.
- You have a valid driving license.
How Do I Benefit From A Personal Accident Cover?
A personal Accident Cover can be your saviour during an accident. Let us understand this with an example:.
Your friend just started his married life. His wife is a home-maker. In a tragic accident, his bike slips on a hilly road. He loses his life.
What happens to the family?His wife has no emotional support. But, thankfully, she has financial support.
How? Years ago, while buying his two-wheeler policy, your friend made a wise decision. He chose a Comprehensive two-wheeler policy. The personal Accident Cover component of the policy paid compensation to his wife. The lump-sum amount that the insurer paid now takes care of her financial needs.
Can I Buy Accident Cover For Someone Else?
You can buy a separate Accident Cover for the pillion rider i.e.the person sitting behind you on a bike. However, for this, you will have to buy a Personal Accident ‘Add-on’ cover. This means, to cover the co-passenger, you need to pay an additional premium.
Additionally, you can also cover a paid rider. For example, you can buy such covers for your delivery boys. The Workman Compensation Act requires you to compensate your employees for any injuries suffered while working. Thus, to have a financial cover during such times, you can buy a Personal Accident Add-on cover for your employees.
Types Of Accident Covers – A Recap
|What||Who Is Covered||Which Policy||Compensation Limit|
|Accident Cover||Third-party individual or people||Third-party Bike Insurance policy||No limit|
|Personal Accident Cover||Owner-driver||Comprehensive Bike Insurance policy or Third Party Liability cover||Rs. 1 lakh|
|Personal Accident Cover for the pillion||Person sitting behind the rider||Optional in both Comprehensive Bike Insurance policy and Third Party Liability cover||As per sum insured|
|Personal Accident Cover for paid rider||Paid riders||Optional in both Comprehensive Bike Insurance policy and Third Party Liability cover||As per Workmen Compensation Act|
What Kinds Of Liabilities Do Accident Covers Compensate For?
Accident Covers compensate the following kind of liabilities:
- Accidental Death
- Permanent Total Disability
Let’s understand the above point in detail:
This cover is useful in case of injuries suffered in an accident or if it leads to death. The insurer pays a lump-sum amount to the family of the deceased. The Motor Accident Claims Tribunal (MACT) decides this amount.
Permanent Total Disability
If the accident causes permanent total disability, the insurer pays the entire sum assured. In case of third-party two-wheeler insurance, the Motor Accident Claims Tribunal (MACT) fixes the compensation.
The compensation paid varies as per the extent of an injury. The following table lists these details:
|Particulars||Scale of Compensation|
Sight of two eyes
One limb and sight of one eye
Sight of one eye
|Permanent total disablement from injuries other than named above.||100%|
What Is Excluded in the Accident Cover
The Accident Cover does not cover injuries caused due to the following:
- Riding under the influence of alcohol, drugs or any intoxicants
- Self-inflicted injuries or suicide
- Pre-existing injuries or disabilities
- Participation in any hazardous sports or activities
- Any criminal act
- Mental disorders
What Is the Claim Procedure for Bike Insurance Policy?
There is no separate process for making an Accident Cover claim. The process varies as per your policy type i.e. Third-party or Comprehensive.
The common stages include:
- Informing the insurance company
- Informing the police
- Survey of the bike
- Claim Settlement
The following documents and details are required while making a claim:
- Name and contact details of the owner
- Policy details
- Date, time, and location of the accident
- A description and explanation of the accident
- An estimate of the loss
In the case of death and disablement claims, copies of the police report, death and post-mortem certificate, and medical reports and bills are a must.
Once these documents are furnished, the insurer proceeds towards processing the claim. After a thorough inspection of the incident, the insurance company can either approve or reject the claim.