Having a two-wheeler insurance policy is critical for dual reasons – first, to comply with the law and second, to safeguard your vehicle. But it is often noticed that new buyers tend to ignore the importance of a two-wheeler insurance. Thus, to ensure legal compliance, many buyers purchase a third-party coverage only. While this may save premium during the initial purchase, the necessity to have own-damage cover is soon realised.
Own-damage cover in two-wheeler insurance – Explained
Own-damage coverprotects your two-wheeler from damages in the event of an accident. This cover specifically aims to cover the damages that are caused to the insured vehicle unlike liability only plans that are constricted in its scope. Apart from accident related damages, thefts, fires, natural calamities and man-made perils are also are included in the scope of own-damage cover.
Why was the need to introduce a separate own-damage plan?
From September 2019, the regulator introduced the availability of the separate insurance cover called as the standalone own-damage cover wherein the coverage which was available under a comprehensive plan could now be purchased separately. The reason for introducing a separate plan was to give an opportunity to those with a third-party policy to upgrade and avail such additional coverage.
For whom is such standalone cover ideal?
This type of bike insurance coverage is ideal in two scenarios –
- If you want to enhance your bike insurance coverage from a liability only policy to cover own damages too, a standalone coverage is the right choice.
- At the initial purchase of your bike insurance online, you have bought a third-party policy from a different insurance company, you can purchase a standalone own-damage cover at a later date.
What forms part of standalone coverage?
The scope of a standalone own-damage plan cover the following types of events –
Damages due to accidents: Accidents can result in hefty damages, to your as well as third person’s vehicle. With an own-damage cover, the repairs and replacement cost for your vehicle can be reimbursed whereas third-party damages are covered by liability only coverage.
Theft of vehicle:Other than accidents, thefts are pretty common with the increasing congestion in urban areas. With an own-damage cover alongside a thirdparty twowheeler insurance policy can help to avoid financial loss due to such theft.
Damages due to fire: Fires are uncertain. Just like accidents are unpredictable, engine can light up in flames due to various factors. With an own-damage cover, you no longer need to worry about these unpredictable damages.
Natural calamities damaging your bike: Lastly, an own-damage policy includes natural calamities as part of its scope. Using this coverage, it can assure to reimburse any repair costs damaging your vehicle.
These are some of reasons why you should opt for an own-damage cover. If you already do not have a comprehensive policy, this coverage can also be purchase during bike insurance renewal. Keeping in mind these above benefits of using an own-damage policy, make sure to secure the coverage of the two-wheeler insurance policy for your bike. 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.