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Undoubtedly, bikes or other types of two-wheelers are the most economical option for Indian commuters, but they also come with their own set of concerns due to their high risk of road accidents.
With the increased number of two-wheelers on the road and the increased risk of accidents, it has become critical to have good bike insurance that not only assists you in overcoming any financial loss resulting from bike accidental damage but also protects the other person who has been injured in any way as a result of your bike's involvement.
Here's a complete and comprehensive overview on bike insurance, including types of bike insurance policies, features and benefits, which one to choose based on your needs and requirements, and much more.
What Is Bike Insurance?
Bike insurance is a contract between the bike owner and the insurance provider that covers any damage to the bike that occurs as a result of an accident, theft, or collision. Bike insurance is critical in protecting financial and legal duties that may occur as a result of an unfortunate accident, natural catastrophe such as fire or landslide, or man-made reasons such as theft, rioting, vandalism, and so on.
Bike insurance coverage cover all types of two-wheelers, including motorcycles, scooters, mopeds, and electric bikes. According to the Indian Motor Tariff, 2002, every bike owner is required to obtain at least a third-party bike insurance coverage.
Why Is Bike Insurance Necessary?
If you possess a bike and do not have an insurance coverage for it, it may be exceedingly dangerous and unsafe. By paying a little fee for an insurance policy, one can obtain a sizable sum of money in an emergency. The following are the reasons why it is essential for any vehicle owner to have a bike insurance policy:
Safeguards you from Legal Fines:It is prohibited in India to ride a bike without a valid third-party bike insurance coverage. As a result, it is important to have comprehensive bike insurance in place to avoid incurring high legal fees.
Coverage for Natural and Man-Made Disasters: Insurance coverage cover damage to the bike caused by natural disasters such as landslides, floods, earthquakes, and fires, among others. With adequate insurance in place, one may quickly file a claim in these unanticipated scenarios.
Coverage Against Theft: Theft of your bike can be a serious issue, and the financial consequences might be severe. However, if your bike is insured, you won't have to worry too much because the insurance company will cover the cost of replacing your vehicle as soon as you report the theft.
Coverage Against Third-Party Liabilities: Third-party bike insurance, which is required, protects your bike financially against any damages or injuries caused to a third party as a result of your vehicle's involvement in an accident.
Coverage for Own Damages: One of the most essential reasons to have a bike insurance policy is that it provides financial assistance to the insured bike owner for any costs expended on repair work of damaged motorcycles as a result of accidents or any man-made or natural calamity.
Key Features And Benefits Of Bike Insurance
360-Degree Protection: A bike insurance coverage offers you, your vehicle, and any third-party person or property with 360-degree financial and legal protection in the event of an accident or disaster. Having bike insurance protects you against loss and damage caused by theft, strike, or conflict. While third-party insurance is required, you can choose a complete coverage package to cover your personal damages to your bike.
Cashless Claim: This is one of the primary advantages of having a bike insurance coverage. An insured bike owner may simply submit for a cashless claim if their bike is damaged in an accident or disaster. All customers have to do is drop their damaged vehicle off at any of the network garages, and the bill will be handled directly between the garage owner and the insurance company.
No Claim Bonus: A no-claim bonus is a type of discount offered by insurance companies for not filing a claim in the previous year. Bike insurance firms provide up to 50% NCB on insurance premiums, which is a significant advantage for insured. The NCB discount can be carried forward even further when you renew your coverage.
Personal Accident Coverage: Personal accidental coverage is one of the benefits that the insured receives when they purchase a bike insurance policy. This insurance protects the bike rider against physical harm or death as a result of an accident. It is critical to have a personal accident protection, especially if you drive, but if you do not have a separate PA cover, you may absolutely obtain it along with your bike insurance.
Long-term coverage: Bike insurance firms have developed various long-term insurance packages that can cover your bike for up to three years. The advantage of being insured by a long-term insurance is that the premium is fixed for the following three years, eliminating the trouble of yearly policy renewal. Many insurance firms also offer premium savings for choosing these long-term bike insurance packages.
Different Types Of Bike Insurance Policies?
When purchasing bike insurance, you may choose from a variety of insurance products based on your coverage needs. In India, bike insurance is roughly classified into three basic types:
Third-Party Insurance
To ride a bike on Indian highways, you must have third-party insurance, according to the Motor Vehicles Act of 1988. Third-party insurance covers any injuries, impairments, or death caused to a third person as a result of an accident involving the insured's motorbike. However, this plan does not cover the insured's bike damages or theft. The insurance regulator of India, IRDAI, has already decided on third-party premiums for FY 2022-2023, which are as follows:
Comprehensive Insurance
This type of insurance coverage offers the bike owner all-around protection. It protects you, your bike, and any third-party person or property from any financial losses. It also offers personal injury protection for the owner-driver. To ensure your bike's complete safety, you should get comprehensive insurance.
However, because of the wide coverage, this type of insurance is more expensive than third-party bike insurance. At the same time, with comprehensive insurance, the insured has the option of paying an additional premium for optional riders such as zero depreciation cover, engine protection, key replacement, and so on.
Standalone Own-Damage (OD)
This type of bike insurance covers damages to your own vehicle in the case of an accident or disaster. The insured obtains financial protection for their own insured bike under this plan. This coverage does not cover any third-party person or property harm.
The insured may purchase a third-party policy and an own-damage coverage from the same or other insurance companies. By acquiring add-on covers, an insured can expand the extent of coverage of an own-damage insurance policy.
Add-On Covers For Bike Insurance Policy
If a bike owner obtains this cover along with the policy, they will not have to pay for the cost of depreciation of your vehicle, allowing you to claim for a larger sum.
Road Assistance:
This add-on is excellent for giving any type of emergency assistance that a bike owner would require if their bike breaks down in the middle of the road. With this coverage, one receives services such as on-the-spot bike repair, free drop-off to your destination, reimbursement for the cost of transporting the bike to the garage, and so on.
Consumables Coverage:
When it comes to submitting claims, the cost of damaged nuts, bolts, and other consumables is frequently not covered by the typical insurance policy. This add-on, on the other hand, supports you in paying the expenses of consumables damaged in an accident.
Engine Protection Or Gear Box Protection Cover:
We all know that changing key bike parts like the engine and gearbox may be expensive, but when you apply for its protective add-on cover, the same item can be replaced for free. However, the engine and gearbox would only be paid if they were damaged in an accident or other horrible disaster.
Return to Invoice Coverage:
This coverage allows the bike owner to get the entire invoice amount of their bike if it is completely destroyed or stolen.
Tyre Protection Cover:
A tyre is an essential component of any motorcycle or two-wheeler. If the bike owner has chosen tyre protection cover, all tyre wear and tear caused by unintentional damage is covered.
Bike Insurance Claim Settlement Process
The bike owner has the option of filing a cashless claim or a reimbursement claim. The claim settlement method differs between cashless and reimbursement claims. Let's go over the claim settlement procedure for filing claims under both alternatives one by one.
Steps to File Cashless Claims
Step 1: Contact your insurance company directly to notify them. You can call their toll-free number or go to their website.
Step 2: Now, register your claim and keep the claim reference number for future reference.
Step 3: The insurance company appoints a surveyor or a claim inspector to analyse the damage done to your car. The surveyor will then submit this evaluation to the insurance company.
Step 4: Once the insurance company has approved the claim paperwork, your bike will be delivered to the nearest network garage for repairs.
Step 5: After reviewing the documentation you supplied, the insurance company will clear the cost directly with the garage, resulting in a cashless settlement of the claim.
Step To File Reimbursement Claims:
Step 1: Contact your insurance company directly to notify them. You can call their toll-free number or go to their website.
Step 2: Now, register your claim and keep the claim reference number for future reference.
Step 3: Take your broken bike to a nearby mechanic and get it fixed. Set the total bill and pay the garage immediately.
Step 4: Submit the original bills, relevant documentation, and claim settlement form to the insurance company to begin the claim procedure.
Step 5: Once the claim is granted, the insurance provider will refund you and reimburse you for the claim amount.
Documents Required to File A Bike Insurance Claim
Claim settlement form has been signed and completed.
A duplicate of an insurance policy.
Obtain a licence copy.
A copy of your bike's registration certificate.
In the event of a major accident or theft, a copy of the FIR is necessary.
Original repair invoices/bills
How To Choose The Right Bike Insurance Policy?
Keep the following considerations in mind while selecting the best bike insurance coverage for your car.
Examine your coverage needs and choose the insurance that best matches your budget.
Determine the cubic volume of your bike before selecting an insurance.
Understand each add-on or rider available before extending your insurance coverage.
Know your bike's current insured stated value (IDV). The IDV is the maximum sum covered that is set when purchasing a bike insurance policy. The insurance company will pay this amount if your bike is totaled or stolen.
Investigate the insurance business online and choose a reputable insurer.
Online, you may compare premium prices and study the insurance terms and conditions at your leisure.
Consider reviewing online consumer comments and reviews.
How To Calculate Bike Insurance Premium?
A premium calculator online application may be used to simply calculate a bike insurance premium. This calculator assists policyholders in obtaining premium quotations in seconds by simply entering facts such as the bike's model and manufacture, registration location, year of purchase, regional transport office (RTO) location, and policy type.
Calculating premium before purchasing a bike insurance policy provides you with a good concept of different premium estimates from different insurers, which aids in making the proper option.
However, the information required to compute the premium for used and new motorcycles is vastly different. Let's see what information is necessary for both new and old motorcycles.
Details Needed For Calculating Premium For A New Bike:
- Name and year of manufacturer
- Model of bike
- Variant of bike
- Registered Location
Factors Affecting Bike Insurance Premium
- Selected Insurance Policy Type: In general, every insurance provider offers two types of coverage: third-party and comprehensive bike insurance policies. Because it solely covers third-party liabilities, the third-party bike insurance price is quite low. However, the cost for a comprehensive policy is more since the bike owner receives additional benefits and wide coverage when compared to a simple and basic third-party insurance policy.Engine Capacity and Other Such Factors: Because different two-wheelers have varied characteristics, the premium cost varies according to the kind and condition of the bike. For example, the bigger the cubic capacity of the engine, the higher the insurance premium amount. Aside from engine size, the premium amount is affected by the bike's age, model, location, and fuel type.Bike Insured Declared Value (IDV): This is one of the most important criteria that influences the price of the bike insurance premium. The IDV of a two-wheeler refers to its current price or worth depending on its brand, usage, and other capabilities. If the car is old, the IDV will be lower; if the IDV is lower, the premium paid will be lower as well.Add-on Covers: While add-on covers serve to improve coverage, they can raise your premium. Because each add-on you select comes at a modest additional cost. So choose your add-ons wisely and prudently, because they do not come cheap!
Documents Required To Buy a Bike Insurance Online
Passport, driver's licence, and PAN card are acceptable forms of identification.
Voter ID, Passport, and Aadhar Card are acceptable forms of address proof.
A copy of your bike's registration certificate.
Your bike's registration number.
A current passport-sized image of yourself.
If you have an old policy number, enter it here.
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