Types of Bike Insurance in India

How Many Types of Bike Insurance Are There?

There are three commonly available types of bike insurance in India:

• Third-party bike insurance
• Standalone own-damage bike insurance
• Comprehensive bike insurance

1. Third-Party Bike Insurance

   Third-party bike insurance is the minimum and mandatory cover required for all two-wheelers used on public roads in India. It covers specified legal liabilities arising from the insured bike in a road accident to a third party. The following circumstances are covered under a 3rd party bike insurance policy:

   • Death or bodily injury to a third party
   • Damage to third-party property, subject to applicable limits
   • Other covered third-party liabilities

   However, it does not cover damage to your own bike.

2. Standalone Own-Damage Bike Insurance

   Standalone own-damage bike insurance covers specified loss or damage to your own bike. It can be purchased separately when you already have a valid third-party bike insurance policy. Depending on the policy, own-damage insurance can cover losses caused by the following:

   • Accidents
   • Theft
   • Fire and explosion
   • Natural calamities
   • Certain man-made events

3. Comprehensive Bike Insurance

   Comprehensive bike insurance combines third-party liability and own-damage coverage in a single policy. It can provide protection against specified risks such as accidental damage, theft, fire & explosion, natural calamities, certain man-made events, and third-party liabilities. It also allows you to purchase eligible add-ons for additional protection.

What is Covered Under a Two-Wheeler Insurance Policy?

It is essential to check your requirements before buying a two-wheeler insurance policy. The type of policy you choose will determine the coverage associated with it. Below are some of the inclusions and exclusions of a comprehensive bike insurance policy:

1. Inclusions of a Bike Insurance Policy

   Here is a list of circumstances covered under a comprehensive bike insurance policy:

   • Damages due to natural calamities like floods, landslides, earthquakes, etc.
   • Damages from manmade disasters like fire, strikes, terrorism, riots, vandalism, etc.
   • Losses are covered if the insured bike is stolen or is a total loss.
   • Coverage for third-party liabilities such as death, disability, or property damage.
   • Damages covered to the insured bike in case of an accident.
   • Loss of the insured two-wheeler in case of housebreaking or fire explosion.

2. Exclusions of a Bike Insurance Policy

   Here is the list of exclusions where you won't receive any compensation under your comprehensive bike insurance policy:

   • Damages caused due to electrical or mechanical breakdown.
   • Damages sustained when the rider was under the influence of any intoxicating substances or alcohol.
   • Damages sustained when the rider was not holding any of the valid documents, including the DL, RC, PUC for bike, and a valid policy.
   • Loss arising out of the contractual liabilities.
   • Damages caused by regular wear and tear.

Why Understanding the Types of Two-Wheeler Insurance is Not Enough?

Knowing the types of policy is only the first step. What matters when you actually need to use your policy is understanding what your policy covers, what it excludes, and how its terms apply to different situations.

Let’s understand this with the help of different circumstances:

• If your bike is stolen, a third-party bike insurance policy will not cover the loss. Theft protection is generally available under eligible own-damage or comprehensive bike insurance, subject to the policy terms.
• If your bike is damaged in an accident, the loss may be covered under standalone own-damage or comprehensive bike insurance, after applying applicable deductibles and exclusions.
• If your bike's engine is damaged due to water ingression, an engine protection add-on is required to provide coverage for specified engine-related losses, subject to its terms and conditions.
• If a friend or family member rides your bike and meets with an accident, the claim can depend on factors such as the type of policy, whether the rider has a valid driving licence, permitted use of the bike and the specific policy conditions.
• If you only have third-party bike insurance, damage to your own bike will generally not be covered, even if the accident was not your fault.
• If you choose a higher voluntary deductible, you may have to bear a larger portion of an admissible claim yourself, although the premium may be affected.
• If your bike has accessories, their coverage may depend on whether they are covered or declared under the policy and the applicable terms and limits.
• If you sell your bike, the RC and two-wheeler insurance details need to be updated appropriately. Failing to complete the transfer of bike ownership and bike insurance policy formalities can create issues during a claim.
• If you make a claim after a claim-free period, your No Claim Bonus (NCB) may be affected depending on the claim and applicable policy terms.
• If your policy has exclusions, an incident may not be covered even when you have comprehensive bike insurance.

Does Bike Type Affect Insurance Coverage?

The policy coverage does not become a completely different category simply because you own a scooter, commuter bike, sports bike or cruiser. However, factors related to your bike can influence the premium and applicable policy terms. These may include:

• Bike make and model
• Engine capacity
• Age of the bike
• Insured Declared Value (IDV)
• Location
• Previous claims
• Selected add-ons
• Applicable discounts

For example, a higher-value bike may have a higher own-damage bike insurance premium because the potential claim amount can be higher. Therefore, when comparing two-wheeler insurance coverage, consider both the bike's characteristics and the policy's features.

Which Type of Bike Insurance is Best for You?

• If you only want legal compliance, choose third-party bike insurance.
• If you want complete real-world protection, choose a comprehensive bike insurance policy.

For Indian conditions such as traffic, theft, monsoon flooding, and costly repairs, comprehensive insurance proves to be the most reliable type of two-wheeler insurance.

Things to Check Before Choosing a Policy Type

Before buying a two-wheeler insurance policy, look beyond the premium and check whether the policy provides the coverage you actually need. Comparing the following factors can help you understand the policy better and avoid surprises during a claim:

• Type of two-wheeler insurance policy: Choose between third-party, standalone own-damage and comprehensive bike insurance based on the protection you need.
• Policy coverage: Check the risks covered, such as accidents, theft, fire, natural calamities and third-party liabilities.
• Inclusions and exclusions: Read what is covered and what is not covered under the policy, including specific exclusions that may affect your claim.
• IDV: Check the Insured Declared Value in bike insurance, as it represents the applicable maximum amount payable for the insured bike in cases such as total loss or theft, subject to policy terms.
• Deductible: Understand the bike insurance deductible (both compulsory and voluntary), you may have to pay towards an admissible claim.
• Bike insurance add-ons: Consider bike insurance add-ons such as zero depreciation cover, engine protection cover, roadside assistance cover, or NCB protection cover if they are relevant to your needs.
• NCB: Check your No Claim Bonus eligibility and understand how a claim may affect the applicable discount.
• Claim process: Check how to report a claim, the documents required, the inspection process and other claim-related requirements.
• Garage network: If cashless bike insurance repairs are important to you, check the insurer's available network garages in your area.
• Policy terms and conditions: Read the policy wording carefully for coverage limits, conditions, exclusions and other applicable terms.

What's Next?

Understanding types of policy, coverage, inclusions, exclusions and benefits can help you make a more informed decision about your two-wheeler insurance. Before buying or renewing a policy, compare the coverage, IDV, deductibles, exclusions and available add-ons along with the premium. Once you understand your coverage requirements, you can compare bike plans online and select a policy based on your vehicle and protection needs.

FAQs – Types of Bike Insurance Policies