Accident Cover – Bike Insurance

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 third party liability cover.

When you buy a two wheeler insurance for your bike, Third Party Liability cover is mandatory as per the Motor Vehicle Act, 1988. This cover includes any damage caused to the third person or property and personal accident cover in case of death or disability of the owner driver. Insured has the option to purchase an additional personal accident cover for pillion rider.

An accident cover is nothing but a policy that assures a certain compensation to the insured individual, in case the person was injured to disablement or suffered loss of life during a road accident.

Why Accident Cover?

The only time when an accident doesn’t affect you is when you are not involved in it.

There are about 1,214 cases of road crashes every day.

Road accidents cause one death every four minutes in India.

25% of such deaths is associated with two-wheelers.

You don’t just need a motor insurance policy for your bike’s repairs; you also need it for safety.

This is because accidents do much more than damaging your bike. They cause injuries to you, the person riding behind you and the other lives involved.

You can protect yourself financially against such injuries by adding an accident cover to your bike insurance.

Accident Cover For A Third-Party

If your bike causes injuries to a third party, your insurer compensates to such individual or individuals.

These compensation have no limit. In addition to physical injuries, it includes disability and death of a third-party.

An accident cover for third-party is mandatory. It is part of a third-party bike insurance policy.

 So, What About The Injuries To The Rider?  

The third-party comprehensive insurance covers the rider who owns the insurance as it is a mandatory. You need to purchase this for safeguarding yourself in the event of an accident. At a nominal fee, you protect yourself from disabilities or death.

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 licence.

How Do I Benefit From A Personal Accident Cover?

A personal accident cover can be your saviour during a crisis. Let us understand this better.

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 then?

His wife has no emotional support. But, thankfully, she has a financial support.

How so?

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 a 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 cover for the pillion – the person sitting behind you while riding. 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

WhatWho Is CoveredWhich PolicyCompensation Limit
Accident CoverThird-party individual or peopleThird-party bike insurance policyNo limit
Personal Accident CoverOwner-driverComprehensive bike insurance policy or third party liability coverRs. 1 lakh
Personal accident cover for the pillionPerson sitting behind the riderOptional in both Comprehensive bike insurance policy and third party liability coverAs per sum insured
Personal accident cover for paid riderPaid ridersOptional in both Comprehensive bike insurance policy and third party liability coverAs per Workmen Compensation Act

What Kinds Of Liabilities Do Accident Covers Compensate For?

Here are a few of them:

  • Accidental Death

This cover is useful in case of injuries suffered in an accident, and 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 the case of a third-party two-wheeler insurance, the MACT fixes the compensation.

The compensation paid varies as per the extent of injury:

ParticularsScale of Compensation
Death100%
Loss of:
Two limbs
Sight of two eyes
One limb and sight of one eye
100%
Loss of:
One limb
Sight of one eye
50%
Permanent total disablement from injuries other than named above.100%

What Is Excluded In The Bike Insurance Policy?

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 – Third-party or Comprehensive.

The common stages include:

  • Informing the insurance company
  • Informing the police
  • Settling the claim

The following documents and details are required while making a claim:

  • Name and contact details of the insurer
  • 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, it approves or rejects the claim.

  • Sasidharan Mrithunjayan

    Still I have the following two Doubts:
    1) Is add in PA RIDER covers any expense related hospitalization?
    2)suppose my private car/bike drives my friend or my brother, is he covered under any of the Rider?
    M. Sasidharan

    • Roocha

      Hi M. Sasidharan, the answers to your questions are: 1) Yes, under a Personal Accident Rider, the hospitalization bills are paid by your bike insurance company, depending on the terms and conditions of the insurance policy. 2) No, if the policyholder holder himself is injured, only he will be covered depending upon the respective rider. You can opt for a Pillion rider to cover the person riding along with you. Hope this solved your doubt. Feel free to comment if you have any more!

%d bloggers like this: