Typical Exclusions in Two-Wheeler Insurance Policy
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Home / Two-wheeler Insurance / Typical Exclusions in Two-Wheeler Insurance Policy
It must be quite comforting for you to know that you have bought an insurance policy along with your high-end motorcycle. And this policy promises you financial coverage during unpleasant occurrences. But did you know certain things are not covered under insurance policies?
Having a clear understanding of what insurance covers and what it does not is a necessary factor. This will help you during claim settlement. In this blog, let us delve into typical exclusions in a two-wheeler insurance policy.
Things to Know About Inclusions and Exclusions of a Bike Insurance Plan
Here is what you must know about two-wheeler insurance inclusions and exclusions:
Type of Policy Matters
Inclusions of an insurance plan depend a lot on the type of policy you choose. For example, if you choose a third-party insurance plan, it will only offer coverage for third-party liabilities. However, choosing a comprehensive plan will allow you to get coverage for physical damages caused by accidents, theft, natural or man-made calamities, fire, explosions, and so on.
There is a Limit to the Provided Coverage
All types of insurance coverage come with a limit. Like, the maximum limit of third-party insurance claims for property damage is up to Rs. 7.5 Lakhs. But, in case of an unfortunate death of a third party, there is no limit. The claim amount in that context depends on the decision of the Motor Accident Claim Tribunal.
Common Exclusions in Different Two-Wheeler Insurance Policies
Two-wheeler policy exclusions depend on the policy type you own. The following are some exclusions that are policy-specific:
Insurance policy type | Exclusions |
|---|---|
Standalone Own Damage |
|
Third Party Insurance cover |
|
Comprehensive Insurance |
|
Inclusions in a Two-Wheeler Insurance Policy
Your bike insurance policy inclusions vary according to the type of your policy. Here are the details:
Third-Party Bike Insurance | Standalone Own Damage bike insurance | Comprehensive Bike Insurance |
|---|---|---|
Mandatory | Not Mandatory | Not Mandatory |
Financial protection against third-party damage | Financial protection for damage to the insured bike | Financial protection for both third-party damage and the insured car |
Inbuilt Personal Accident cover | Personal accident cover is not provided | Inbuilt personal accident cover available |
Only covers third-party self, property, and vehicle damage | Covers events such as calamities, accidents, and theft | Covers events such as calamities, accidents, and theft |
Follows a standard premium price | Premium varies from one insurer to another | Premium varies from one insurer to another |
Add-ons not allowed | Add-ons not allowed | Add-ons allowed |
Why do you Need Two-Wheeler Insurance?
Check out the reasons why bike owners need two-wheeler insurance:
Legal Mandate
The Motor Vehicles Act of 1988 mandates that all bike owners in India have a bike insurance policy. If someone is caught without it, they may end up paying a hefty fine.
Financial Coverage
Repairing or replacing bikes has become expensive in recent times. In case of substantial damage due to an accident or natural calamity, the cost of repair could put a hole in your pocket. Insurance policies provide financial coverage so that you can be prepared for unforeseen events.
No Claim Bonus Benefits
Policyholders receive no claim bonus benefits at the end of a policy year if they have not made any claims. This particular benefit fosters responsible driving habits among riders. No claim benefit or NCB is a discount policyholders enjoy as a form of discount at the time of renewing their bike insurance.
Personal Accident Cover and Third Party
Personal Accident cover, along with Third party insurance cover, is compulsory for bike owners. Whereas the first one offers financial protection of up to Rs. 15 Lakhs to the bike owner in case of an unprecedented event, the latter compensates for third-party damage caused by the insured car.
Final Words
Understanding the typical exclusions in a two-wheeler insurance policy is just as important as knowing its inclusions. While your policy offers essential financial protection, it does not cover everything. Being aware of exclusions, such as damages from negligence, mechanical failures, or unauthorized use, helps avoid surprises during claim settlements.
Moreover, the type of policy you choose significantly impacts the scope of coverage. Always read the fine print and consult with your insurer to clarify doubts. This knowledge not only ensures better financial planning but also empowers you to make informed decisions about your bike insurance coverage.
Frequently Asked Questions
1.What could lead to a claim rejection?
If a policyholder does not follow traffic rules and does not maintain the recommended speed limit while driving, the claim might get rejected. It also approves any claim if the accident took place while an unauthorised person was driving the car.
2.What are the typical exclusions in a two-wheeler insurance policy?
Exclusions like driving without a license, drunk driving, driving outside of permitted locations and so on are similar across all insurers.
3.Can I claim insurance coverage for a lost bike?
Yes, if you have lost a bike and want to make a claim, you can do so utilising the Comprehensive bike insurance plan. At first, the insurer will determine the IDV of your bike, and during claim settlement, it will reimburse the amount.
4.Which insurance plan is better, comprehensive or own damage?
According to insurance experts, a comprehensive plan is better because of its wide coverage and immense flexibility. A comprehensive plan covers damages and losses for both the policyholder and the third party.
5.Can I ride a bike without insurance?
No, as per the Motor Vehicles Act 1988, you cannot ride a bike without an insurance policy in India. This stringent law has been quite impactful in controlling road accidents.
Written by
Nikhila PS
Senior Content Editor
Nikhila is a content creator with 6+ years in EdTech and motor insurance, turning complex policies into clear, engaging content. She enjoys exploring digital trends, social media, and art while planning her next short escape.
Reviewed by
Rekhit Singh Kaushal
Senior Director - Motor Underwriting
Rekhit Singh Kaushal is Senior Director at ACKO, a leading digital motor insurance provider in India. With deep expertise in insurance strategy and innovation, he brings trusted insights on car and bike insurance to help drivers stay protected.
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