What is Bike Insurance?
Need help understanding bike insurance? In this article, we have put together everything you need to know about the basics of bike insurance.
Bike insurance, technically called a two-wheeler insurance, is an ideal tool to safeguard yourself against the financial losses which may arise due to an unfortunate event like a road accident involving the two-wheeler. According to the Indian Motor Tariff, 2002 it is mandatory for every bike owner to have at least a third party bike insurance cover.
What Are The Types of Bike Insurance
On the basis of coverage, there are 3 types of bike insurance plans as explained below:
1. Third Party Bike Insurance Plan: A third party bike insurance plan also known as liability only bike insurance plan is the most basic of all bike insurance covers. It insures a policyholder against only but all third party liabilities be it bodily injuries/death of a third party or property damage incurred by a third party. Thus, it provides no insurance cover for damages incurred by the insured’s bike.
2. Comprehensive Bike Insurance Plan: A comprehensive bike insurance cover provides for all the shortcomings of a third party bike insurance cover. Also known as a package bike insurance policy, a comprehensive bike insurance plan provides coverage for all types of damages incurred by the insured’s bike in an unfortunate event. Thus, it provides coverage for both third party liabilities as well as own damages suffered by the insured’s bike.
3. Standalone Own Damage (OD) Bike Insurance Plan: As the name suggests, a standalone own damage bike insurance plan provides insurance cover only for own damages incurred by the insured’s bike in a mishap. Thus, it does not provide coverage for third party liabilities. Thus, if you purchase a standalone own-damage cover, you need to purchase a third party cover as well to meet the legal requirements established by the Indian Motor Tariff, 2002.
Coverage Provided by Different Bike Insurance Policies
|Type of Loss||Third Party Plan||Comprehensive Plan||Standalone OD Plan|
|Bodily injuries of third party||✔️||✔️||❌|
|Death of third party||✔️||✔️||❌|
|Property damage of third party||✔️||✔️||❌|
|Own Damage of Insured’s Bike||❌||✔️||✔️|
|Theft of Insured’s Bike||❌||✔️||✔️|
What does Own-Damage in Bike Insurance Provide Coverage For?
Following is the list of events in which an insurance company provides coverage for the own damage incurred by the insured’s car under a comprehensive and standalone own damage covers:
- Road Accident
- Natural Calamities – Floods, Earthquakes, Cyclones, etc.
- Riots, Strikes
- Terrorist Activities
- Damage During Travel By Air, Rail, Road, Water.
What are Add-On Covers?
Add-Covers are available with standalone own-damage covers and comprehensive plans. They are additional purchases that you can make to further strengthen your standard insurance plan. The add-on covers come at an extra cost that is added to your overall premium and can come in handy in moments of crisis. Moreover, as they are not compulsory, it allows you to pick and choose, giving the insurance policy the flexibility to fit individual needs. Here are some useful add-on covers and their functions:
- Zero Depreciation Cover: With this type of cover, when the policyholder makes a claim, the insurance company will not factor in the depreciation rate of the car when deciding the claim amount for the car. Though a zero depreciation cover is a bit expensive, it proves extremely useful in moments of crisis.
- Roadside Assistance Cover: This cover provides the policyholder with assistance while on road. In case of breakdown, it provides towing services, and taxi service, they can even make a booking for you at the nearest hotel. They can also organise for a mechanic to go to your location and take a look at your car if needed. This is especially recommended for those who have long daily commutes or travel long distances for road trips etc. Click here to know more.
- Passenger Cover: When an accident occurs the rider of the two-wheeler is automatically protected by the personal accident cover that is compulsory. However, it does not compensate the pillion rider, who is the owner-driver’s responsibility in case of a mishap. With this cover, you can ensure the pillion rider is also protected. Click here to know more about Passenger Cover.
- Consumables Cover: There are certain two-wheeler parts or components that can be used only a single time, such as nuts, bolts, coolant, etc. Though small, at times, replacing them can add up to high costs. With a consumables cover, this cost would be taken care of.
- Engine Protect Cover: With a standard insurance policy the damage to the engine of a two-wheeler is not compensated for. However, with the engine protected cover you can also claim for such damages. This comes especially handy for those who live in flood-prone areas.
Return to Invoice Cover: In cases of total damage, the usual practice of insurance companies is to compensate according to the IDV taking into consideration the depreciation rate. However, if you have the return to invoice cover, the compensation paid is the same as the cost of the two-wheeler on its invoice.
Which Bike Insurance Plan Should I Buy?
The answer to this question entirely depends upon the requirements and budget of the bike owner. While a third party bike insurance cover is a mandatory requirement, a comprehensive bike insurance cover is a recommended plan as it provides complete insurance coverage for your much-loved bike.
Here are some factors which are crucial to consider while choosing the right bike insurance policy:
- Policy Coverage
It is vital to confirm the coverage of a policy before opting it to buy. Based on the coverage, you can pick different three types of bike insurance policies such as third party bike insurance policy, standalone own-damage bike insurance policy and comprehensive bike insurance policy. Hence, select the type of policy based on your budget and requirement as the price of the policy also varies with its coverage.
- Add-on Cover
The bike insurance add-on covers are the additional benefits which you can opt for by paying additional charges to extend your policy. Some of the popular bike insurance add-on covers include zero-depreciation cover, personal accident cover, passenger cover, roadside assistance cover, and so on. It is quite significant for the policyholders to check the add-on covers which are offered by the insurance company which can help you in different scenarios.
- Premium Amount
When it comes to comparing and selecting the bike insurance plan, the most important thing comes out to be its amount of premium. A lower amount premium is not always beneficial but sometimes it could be false as well. Hence, a bike insurance seeker must go for the coverage to finalise a premium amount. The premium amount should be affordable and as per the policy coverage.
- Available Discounts
Most of the bike insurance companies offer discounts and similar offers on their bike insurance plans. It is quite important to have a look at how many discounts and offers the company is providing. The more discounts will be there, the more beneficial it will be for you. Hence, you must not forget to opt for such options at the time of buying insurance policy, otherwise, you may have to wait for a policy year to add them in your plan.
- Terms and Conditions
The majority of points are conveyed to the bike insurance policyholders in the policy agreement. As a wise customer, it is your duty to check the terms and conditions to understand what all is provided under the bike insurance policy by your insurance company. It is also required to check the exclusions in the policy to avoid any kind of disappointment at the time of application of claim settlement.
Where to get Bike Insurance
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.