Explaining Motorcycle Insurance

Motorcycle insurance, as most people are aware, protects you and your motorcycle in the event of an accident or theft. Many people are unaware that motorcycle insurance is necessary by law—even if they have automobile insurance!

Motorcycle insurance is divided into several categories.

In most cases, there are four primary forms of motorcycle insurance on the market:

1. Compulsory Third Party (CTP)

2. Property of a Third Party

3. Third Party, Fire and Theft

4. Comprehensive

1. Compulsory Third Party (CTP)

CTP insurance is required by law before you may register your motorcycle. All other types of insurance are optional.

What it covers: CTP protects drivers and riders in at-fault accidents from personal injuries caused by their motorcycles, as well as those injured in the collision. The particular terms and conditions of this form of insurance vary by state.

What it does not include: CTP does not cover the cost of damage to your motorcycle or property, or the vehicles or property of others.

2. Third Party Property

This is the most fundamental type of optional insurance protection. The insurance protects you against legal liability for damage to other people's property, which may save you from going bankrupt if you hit your neighbor's costly car by accident!

What it covers: Third Party Property covers the expense of repairing damage to other people's property caused by your motorcycle. It will also cover your legal fees if they decide to sue you for damages caused by your motorcycle.

What it does not include: The cost of any repairs or replacements to your own motorcycle is not covered by third-party property.

3. Third-Party, Fire, and Theft

This policy protects your motorcycle from damage caused by fire or theft, as well as harm to other people's property.

It includes the following topics: Damage to other people's property, as well as loss or damage to your own motorcycle due to fire or theft, will be covered. Some insurance policies provide only a limited amount of coverage. For example, an insurer may only cover your motorcycle up to its market value or an agreed-upon amount.

What it does not include: If your motorcycle is involved in a traffic collision, this insurance does not cover the cost of repairs.

4. Comprehensive

Comprehensive motorcycle insurance provides the most comprehensive coverage and the most peace of mind. However, when compared to other levels of coverage, the extensive coverage supplied is often more expensive.

It includes the following topics: Accidental damage, both at-fault and not-at-fault, theft, third-party property damage, damage caused by uninsured drivers, vandalism, earthquakes, hail, storms, and floods are all covered by comprehensive insurance. Your insurer will replace your motorcycle if it is written off within a specific amount of time after it was first registered. Furthermore, the same provisions apply in the event of an accident involving a motorcycle whose rider is not a nominated rider. 

What it does not include: Exclusions from coverage include, but are not limited to, occurrences that occur when the motorcycle is being ridden by or is in charge of someone who is under the influence of alcohol, drugs, or medication; if the motorcycle is not roadworthy; and if it is used for business.

What Is the Importance of Motorcycle Insurance?

With the 2019 modification to the Motor Vehicle Act, it is even more important to understand the many components that influence you as a vehicle owner. Motor insurance is an important topic to be aware of. Apart from the fact that vehicle insurance is required by law, it is critical to recognise that two-wheeler insurance is also essential for a variety of reasons. However, protecting oneself from third-party liability costs is one of the key reasons for having car insurance.