Getting a bike insurance policy is a legal necessity for two-wheeler owners. Some might think getting insurance for a bike is expensive, but there are many affordable or cheap bike insurance plans made available by insurance companies these days.
Besides, insurance seekers can also compare and calculate their bike insurance prices through a two-wheeler insurance premium calculator online.
There are several aspects to a new bike insurance policy. If you are a two-wheeler owner and looking for some insights on bike insurance policies, continue reading the article below.
Table of Contents
What is a Two-Wheeler Insurance Policy?
A bike insurance policy covers the damages that may be caused to your two-wheeler in the case of accidents, theft, natural and man-made disasters, fire, etc. It also protects your two-wheeler against third party liabilities in case of road accidents.
This coverage provides financial stability to policyholders as it covers the expenses of any damages that may be caused to your two-wheeler.
Also in India, as per the Motor Act, it is mandatory to have at least third-party insurance for a bike. Note that the coverage and cost of third-party bike insurance are different from a comprehensive bike policy. Therefore, it is necessary to understand the coverage of various bike insurance policies.
What are the Types of Bike Insurance Policies Available?
There are different types of bike insurance policies made available by insurance companies. You can get comprehensive bike insurance, third-party bike insurance, and own damage bike insurance. Each of them has different coverage and premium costs.
Own Damage Bike Insurance:
This bike insurance is also often called a stand-alone own damage insurance. This insurance protects your bike against accidents, loss of vehicle, fire, etc. It is still not as extensive as a Comprehensive bike insurance policy.
This policy is advisable for people who already have third-party bike insurance and want coverage for their own vehicle and themselves.
Third-Party Bike Insurance:
This bike insurance policy protects your bike against third party liabilities. It provides financial coverage for accidental damages caused to third parties like another vehicle, property, or person.
The cost of this bike policy is relatively lower than other bike policies due to its limited coverage. Moreover, the premium of this policy is determined by the IRDAI. However, the coverage of this insurance plan is limited only to third-party liabilities and it does not cover your own bike.
This policy also covers the legal mandate of having third-party bike insurance in India. Since this policy provides quite a narrow coverage for low cost, it is advisable for older bikes with lesser market value.
Comprehensive Bike Insurance:
This policy protects your bike against any own damage to your two-wheeler as well as third-party liability. Among all the types of insurance policies, a comprehensive bike insurance policy offers the most extensive coverage. Due to its wide coverage, the premium for this plan is relatively higher than other bike policies.
Moreover, you can enhance the coverage of this bike policy with the help of insurance riders or add-ons offered by leading insurers like Tata AIG.
Things to Keep in Mind about Insurance Policy for Bike
Add-on Cover:
While buying comprehensive bike insurance, you get the option of add-on covers to enhance your policy coverage. You can choose between different add-on cover options like zero depreciation cover, engine protection cover, NCB protection cover, etc. Note that these add-ons increase the premium amount.
Types of bike Insurance Claims:
There are two types of insurance claims in bike insurance policy i.e. Reimbursement Claim and Cashless Claim. In Reimbursement Claims, repairs are done outside network garages which means you have to pay for the repair out of your pocket and then be reimbursed by the insurer later.
On the other hand, under cashless claims, you can get your bike repaired at a network garage of the insurer and the covered expenses will be directly settled between the insurer and garage.
Deductible in Bike Insurance:
A deductible amount is a percentage that policyholders have to pay in case of any damages to your two-wheeler. The higher the deductible amount the lower the bike insurance premium. Factor in the make and model of the two-wheeler before settling the deductible amount with your insurance company.
Impacts of Insured Declared Value (IDV):
IDV refers to the market value declared of the two-wheeler at the time of buying a bike insurance policy. If the IDV is high so will be the insurance premium.
KYC Documents :
To buy or renew an insurance policy, there are certain required documents by the insurance company. They include address proof, ID proof, income proof etc. Make sure you have these documents before going to buy bike insurance online.
No Claim Bonus (NCB):
NCB refers to the discount offered to the policyholders at the time of policy renewal if no claims have been raised during the previous bike insurance policy period. You should add no claim bonus add-on cover to protect your NCB bonus.
How to Buy Bike Policy Online
- Browse through different insurance company websites for two-wheeler insurance policies and choose an insurer.
- Click on the “Bike Insurance” tab.
- Enter your bike registration number.
- Choose a bike insurance plan according to your preference.
- Select add-on covers if required.
- After this, you will receive an insurance premium quote.
- If the quote suits you, make the final payment.
- Once the payment is successful, you will receive your policy documents.
Wrapping up
A bike insurance policy is essential for a two-wheeler owner. It protects your bike against any damage to your bike in case of any accidents and reduces the financial burdens of a bike owner.
Also, when you get motorcycle insurance, it gives you peace of mind knowing your bike is well protected.