All motorized two wheelers in India are required by law to be insured before they can hit the roads. A strict fine is being imposed on owners who do not own 2 wheeler insurance by the traffic control authority. Many people despise the implementation of this law but it is for the common good of both the owner of the vehicle as well as the driver, which are not same most of the time. It protects the rider in case an accident occurs where the rider or a third party is injured. Two wheeler insurance policy takes care of the compensation to be paid to the damages of the third party while at the same time compensate the owner of the vehicle in tandem with the damage and losses that were sustained in the accident.
Two wheeler insurance thus can be seen as a community good wherein every affected being is been taken care of in some way when disaster strikes.
There are 2 types of vehicle insurance policy available commonly known as comprehensive policy and third party liability policy. The sole difference between the two, as the name suggest is, the latter provides relief towards damages occurring for a third party (property damage/injury/death); whereas the former provides wholesome coverage which will include the replacement of body parts of the vehicle that are damages or complete replacement of the vehicle if necessary, towing charges as well as everything covered by the third party insurance.
Regular premium in lieu of 2 wheeler insurance coverage needs to be paid. The amount of premium depends upon four factors; namely: cubic capacity of the bike, total value of the bike, age of the bike and the geographic zone in which it is registered. Therefore the rate of premium to be paid for each 2 wheeler is different from the others.