Rental Bike Insurance in India

What Is Rental Bike Insurance?

Rental bike insurance is a type of two wheeler insurance policy designed for bikes that are rented out for commercial purposes. Unlike regular bike insurance that covers private use, rental bike insurance offers protection against own-damages and third-party liabilities to the rental two-wheelers. Additionally, it gives you an option to enhance the policy coverage with the help of add-ons.

Therefore, a rental bike insurance ensures that both the bike owner and renter are financially secure in case of unfortunate events, such as a road accident.

Why Do You Need Bike Insurance for Rental Bikes?

Here are the various reasons why insurance for rental bikes in India is important:

Legal Requirement

As per the Motor Vehicles Act, 1988, every bike used on Indian roads must have at least a third-party bike insurance policy.

• Higher Risk Usage: These bikes are used by multiple riders, often in unfamiliar conditions. The risk of accidents or mishandling is higher compared to privately owned bikes.
• Financial Protection: Any damages due to an accident can lead to heavy repair costs. A comprehensive rental bike insurance policy helps cover these expenses.
• Fleet Operators' Safety Net: Since bike rental companies let out their bikes to multiple users, there is a high need of adequate insurance to safeguard their assets & reduce losses.

Key Inclusions of Rental Bike Insurance

A basic comprehensive rental bike insurance policy covers the following instances:

• Accidental damage to the rented bike.
• Third-party injury/death or property damage.
• Theft or total loss of the bike.
• Damages to the motorcycle due to a fire outbreak.
• Damages due to natural calamities or man-made disasters. 

Exclusions in Rental Bike Insurance

Here are the common exclusions of a rental bike insurance policy, where the insurer will not compensate:

• Damage during professional racing or illegal activities.
• Riding without a valid license or under the influence of alcohol/drugs.
• Wear and tear or regular maintenance issues.
• Using the bike outside the geographical limits mentioned in the policy. 

How to Buy Insurance for Rental Bikes in India?

If you own rental bikes or are a fleet operator, you can insure them by following the steps below:

• Step 1: Visit the official website of Policybazaar Insurance Brokers Private Limited.
• Step 2: Head to the 'Two Wheeler Insurance' or 'Bike Insurance' button.
• Step 3: Enter your bike number for renewal. In case you have a new bike, choose 'Bought a New Bike?'.
• Step 4: Now, compare various quotes online and decide on the type of plan (third-party bike insurance or comprehensive bike insurance)
• Step 5: You can buy add-on covers as per your needs and preferences.
• Step 6: Now fill in your personal details and nominee details.
• Step 7: Pay the premium online and receive your policy copy instantly via email.

Do E-bikes Need Rental Insurance?

Yes, rental electric bikes (e-bikes) also need insurance to operate on the Indian roads. However, e-bike insurance requirements depend on their power output and speed. Let's break it down for better understanding:

• E-bikes below 250 watts and speed less than 25 km/h: Do not require insurance under the law.
• E-bikes above 250 watts or speed exceeding 25 km/h: Must be insured with at least a Third-party e-bike insurance policy. 

  For fleet owners operating rental e-bikes, a comprehensive e-bike insurance policy is recommended along with a right set of add-ons.

Key Points to Consider Before Buying Rental Bike Insurance

When choosing a rental bike insurance policy, you need to keep these factors in mind:

1. Insured Declared Value (IDV)

   IDV is the current market value of your bike, and it directly impacts both the premium and claim amount. Ensure you choose the right IDV to get adequate compensation in case of theft or when your bike is damaged more than 75% (total loss).

2. Scope of Coverage

   Decide whether you only need mandatory third-party cover or a comprehensive two wheeler insurance plan that also includes own damage and add-ons.

3. Customisation with Add-Ons

   Add-ons like zero dep cover, roadside assistance cover, personal accident cover, pillion rider cover, and engine protection cover are some popular bike insurance add-ons which help in enhancing the overall protection for your fleet. Evaluate your risk profile and include add-ons accordingly.

4. Compare and Buy Bike Insurance Plan Online

   At Policybazaar.com, you can compare multiple plans as insurers offer different pricing and benefits.