Differentiating Bike Warranty & Bike Insurance

Purchasing a bike is dream come true for many. When you purchase a new bike then insuring it with third-party insurance is mandatory. However, purchasing comprehensive insurance plan is up to you. Whereas bike warranty is a type of feature that is provided to you buy your dealer. Under bike warranty you get free replacement of the faulty bike parts. Bike insurance and bike warranty both works to protect you from financial burden but the way they work is different.

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How Does Insurance Protect Your Pocket?

A bike insurance plan protects the policyholder from the third-party liabilities as well as own damages that took place in a road accident. Since purchasing a third-party insurance is mandatory as per the Government of India whereas purchasing a comprehensive insurance plan depends on the bike owner.

However, it is recommended to purchase a comprehensive plan because it provides cover for own damages. The own damage cover provides financial aid for the damages caused to you or your bike in a road accident, fire incident, etc.

You can purchase comprehensive insurance plan, renew it and raise claims online because it is better and a hassle-free process. You won’t even have to pay for the insurance agent’s fee because it would be an online purchase. There are insurers available that can design the two-wheeler insurance plan as per your requirement that meets your budget as well.

How Does Warranty Keep Your Savings Intact?

A bike warranty is provided by the manufacturer of the bike. When you purchase a bike the manufacturer offers warranty for a specific period of time. Under the warranty, the manufacturer commits to replace the defective part of the bike within the specified warranty period.

What Is Covered Under Bike Warranty?

Bike warranty provided by the manufacturer provides cover for a period of time specified by the bike company. Here are the things that are covered under the bike warranty:

  • Mechanical parts such as gearbox, engine, etc.
  • Safety equipment such as ABS, ride by wire, etc.
  • Electrical parts such as CDI unit, ignition coil, etc.

What Is Not Covered Under Bike Warranty?

There are several things that are not covered under the bike warranty. They are as follows:

  • Labour Cost is not covered
  • Regular wear and tear is not covered
  • Modifications are not covered
  • Illegal racing led to damages is not covered
  • Negligent riding led to damages is not covered

Difference Between Bike Warranty & Bike Insurance

The difference between the bike warranty and bike insurance is mentioned in the table below:

Coverage

Insurance

Warranty

Third-party liability

Insurance covers third-party liability such as vehicle damage or injury resulted in an accident.

Does not provide cover for third-party damages.

Damage to insured bike

Accidental damage is covered to the bike insured.

Does not provide cover for damage caused in an accident.

Faulty bike parts

Does not cover or pay for faulty bike parts.

Does provide cover for the faulty bike parts and the company replaces it.

Customization

Add-on cover can be purchased by the policyholder to get this coverage.

Does not provide cover for customization.

Is it mandatory?

Third-party liability is mandatory whereas own damage cover is optional.

Warranty is provided by the bike company on the purchase of bike. You can extend the warranty if you want.

Bike theft

Bike theft is cover under comprehensive insurance plan.

Bike theft is not covered.

Total loss

Comprehensive plan covers total loss. Total loss means if the bike gets damage that cannot be repaired.

Does not provide cover for total loss.

Personal accident cover

It is a mandatory cover that the bike owner must purchase separately.

There is no option to buy this cover.

Wear & Tear

Not covered

Not covered

Electrical/Mechanical failure

Not covered

Covers electrical/mechanical failure within warranty period provided by the company.

Natural disaster cover/Manmade disaster cover

Provides cover for manmade and natural calamity damage.

Does not provide cover for manmade or natural disaster damages.

Fire/Explosion

It is covered under insurance plan.

No coverage is provided.

The bike warranty comes along with the purchase of the bike whereas third-party bike insurance is mandatory to purchase. However, it is recommended to purchase the comprehensive insurance plan to get cover for own damages as well as purchase personal accident cover separately.

Types Of Bike Warranty

When you purchase a bike, the bike company provides warranty for a specified period of time. There are two types of warranty provided by the bike company:

New Warranty

Generally, the bike company provides warranty for a period of 3 to 5 years. It varies from one bike company to another.

Extended Warranty

Once your new warranty expires, you can purchase extended warranty. However, the coverage may differ from the new warranty.

Pros & Cons of Bike Warranty

Here are the pros and cons of bike warranty:

Pros

  • No need to worry about faulty parts of your bike.
  • You can include extended warranty.
  • No additional cost is require for new bike warranty.

Cons

  • No coverage is provided for accidental damage.
  • No coverage for the tyres and brake pads.
  • You cannot include any add-on cover.
  • No coverage is provided for third-party liabilities.
  • You cannot include personal accident coverage.
  • You cannot customize bike warranty.

Conclusion

Bike warranty is provided by the bike company whereas bike insurance is provided by several insurance companies in India. Bike warranty is utilized to replace the faulty bike parts whereas bike insurance provides cover for damages caused to the bike in unforeseen accidents. You can extend the bike warranty by paying an extra amount similarly you can purchase a two-wheeler insurance plan. It is recommended to purchase the insurance plan online because they are cost-effective and comes with several benefits. Also, you can renew as well as raise the claim online.

Written By: PolicyBazaar - Updated: 08 September 2021
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Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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