Why is Own Damage Bike Insurance Cover Useful?
Own damage bike insurance policy protect the insured vehicle in case of accidental damage. As you know, the mandatory third-party bike insurance only covers the liabilities of a third party arising out of accidental death, damage, or injury. In such a case, no coverage will be offered if your vehicle is damaged. However, if you have your damage bike insurance policy, you can also claim for the damages sustained by your bike.
Features of Own Damage Coverage in Bike Insurance
- The policy offers financial coverage to repair parts of the insured bike due to accidental damages.
- Unlike third-party insurance, the own-damage cover is complimentary.
- Own damage insurance is extensive, and one can opt for add-on covers to boost the policy coverage.
- Since it offers wider coverage, the premiums are significantly higher than the third-party bike insurance.
- The policy covers the insured vehicle from the loss or damage caused due to man-made and natural calamities.
Own Damage Cover- Inclusions
This policy covers the cost of damages caused to your two-wheeler from:
- Natural calamities like fire, earthquake, explosion, floods, storms, and more
- Man-made disasters like vandalism, riots, theft, burglary, malicious activities, and terror attacks
- Accidental damages
- Theft, burglary, and housebreaking
- Damages beyond repair (Total Loss).
Own Damage Cover- Exclusions
When this policy covers the insured vehicle to a certain extent, there are some situations where providing coverage cannot be feasible. In such a case, own damage cover remains inactive. Below are some common exclusions of the own damage bike insurance policy:
- Normal wear and tear
- Mechanical or electrical break-down
- If a vehicle is being used outside the geographical limitation mentioned in the policy document.
- Consequential loss
- Damage to tyres & tubes unless the vehicle is damaged simultaneously. However, the company's liability is limited to 50% of the total repair cost.
- If the vehicle is driven under the influence of alcohol, drugs, or other intoxicated substance
- If the driver is not carrying a valid license at the time of the accident
- In case, the bike insurance policy is not active at the time of the claim.
How is the Own Damage Premium Decided in Two-Wheeler Insurance?
While the Insurance Regulatory and Development Authority (IRDA) decides third-party insurance premiums for a fixed tenure, the premium calculation for own damage insurance plan depends upon several factors, such as:
- Age of the insured
- Age of the vehicle
- Vehicle registration location
- Bike's make and model
- Anti-theft installed in the vehicle
- Two-wheeler owners with AIAA membership
- Voluntary deductibles
Two-wheeler insurers consider all these factors when deciding the premium rates for bike insurance. You can calculate it yourself by using the bike insurance premium calculator online available at Policybazaar.com and get the premiums suggestions.
How Much Protection Can be Availed in OD Cover?
The amount of protection to be availed in case of a damage claim is based on the insured's declared value of your two-wheeler. Usually, bike insurance coverage depends on the IDV of the vehicle, where the insurance company pays up to the IDV only in case of an eventuality. The amount you will receive will be based on the current market value of your vehicle.
How to Claim Bike Insurance for Own Damage?
Claiming own damages in your bike insurance is simple. To initiate the claim process, follow the below steps-
- Step 1: Immediately inform the insurance provider about the incident. Register your claim by calling their toll-free number or writing an email. Ask for the claim form or download it from the insurer's official website.
- Step 2: Try providing as much as possible evidence of the accident. It is better to click pictures of the damages sustained by the vehicle. Fill out the claim form and submit it along with the relevant documents.
- Step 3: A surveyor from the insurance company will examine the vehicle and the damages. Later, the surveyor will send the assessment report and bills to the insurer.
- Step 4: Once you get approval from the insurer, take your damaged vehicle to the nearby network garage. If you repair your damaged bike from the network garage, you can file a cashless claim, where the insurer will settle expenses directly. If you avail the services from a non-network garage, you must pay the bill first and receive the compensation later.
You may like to Read: How to File a Bike Insurance Claim
What are the Documents Required for Filing an Own Damage Claim?
In case a claim arises for your own damage, you will have to provide the following documents to the insurer:
- Valid and active two-wheeler insurance policy
- FIR in case of an accident/theft (may vary from insurer to insurer)
- Registration Certificate of the vehicle
- Photos (as evidence)
- Other documents (may vary from insurer to insurer)
The bottom line!
An extensive bike insurance policy means you must have OD insurance for bike. That is why buying a comprehensive bike insurance policy is suggested, as it ensures that your prized possession gets optimum protection in case an emergency strikes.
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#Savings are based on the comparison between highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.
*TP price for less than 75 CC two-wheelers. All savings are provided by insurers as per IRDAI-approved insurance plan. Standard T&C apply.
*Rs 538/- per annum is the price for third party motor insurance for two wheelers of not more than 75cc (non-commercial and non-electric)
#Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.
*₹ 1.5 is the Comprehensive premium for a 2015 TVS XL Super 70cc, MH02(Mumbai) RTO with an IDV of ₹5,895 and NCB at 50%.
*Rs 457/- per annum (1.3/day) is the price for the third-party motor insurance for private electric two-wheelers of not more than 3KW (non-commercial). Premium is payable on an annual basis