In India, having a
motor insurance is mandatory. However, today, almost everyone who buys a motor insurance does so more by choice than by coercion. And why not, after all the right kind of motor insurance provides protection I the event of an unforeseen accident or loss/damage of the vehicle. But, what does your motor insurance policy offers, if your vehicle is stolen?
Insurance will pay out an amount equal to the cash value of a motorcycle if it is stolen and not recovered. Your comprehensive coverage is the portion of the policy that applies in this situation. Without comprehensive coverage your insurer will not pay a dime.
Any day, the probability of a two wheeler being stolen is more than that of a car. Studies suggest that compared to stolen cars, very few stolen two wheelers are recovered. May be because, it is easier to hide and dismantle two wheelers. Thus, it is important to have a comprehensive two wheeler insurance
If your two wheeler is not covered under comprehensive motorcycle insurance, then your policy won’t cover theft of your vehicle. A tw -wheeler insurance without comprehensive plan covers only third party damage/loss. Such a policy won’t pay you anything towards damage and/or loss of your vehicle.
Whereas, a comprehensive motor insurance covers damage and/or loss of your vehicle, in addition to third party liability.
In specific case like theft of your two wheeler, a comprehensive motor insurance will pay you an amount equivalent to the value of your vehicle’s current market value (the price you would get, if you were to sell your vehicle today).
However, if your two wheeler is recovered, you won’t get any claim amount from your scooter insurance company. In case you vehicle was under loan, your motor insurance company will reimburse the payout amount to the financer of your vehicle and the difference amount shall be paid by you.