Types of Bike Insurance in India

How Does Bike Insurance Work?

A bike insurance policy provides coverage against specified risks in exchange for a certain premium. If an insured event occurs during the policy period, you can raise a claim with the insurer, subject to the policy terms, bike insurance deductibles, exclusions and applicable limits.

For example, if you have comprehensive bike insurance and your bike is damaged in an accident, the insurer may pay the admissible repair costs after applying applicable deductibles and exclusions.

Similarly, if your bike causes covered third-party injury or property damage, the policy's third-party component can cover the applicable legal liability under the policy and applicable law.

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.

Comparison of Types of Bike Insurance

The comparison table below will help you understand the different types of bike insurance and the protection offered by each type of two-wheeler insurance policy:

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 bike insurance policy.
   • Loss arising out of the contractual liabilities.
   • Damages caused by regular wear and tear.

Non-Electrical Accessories in Bike Insurance

Some bike insurance policies may cover specified accessories, subject to the policy terms and the applicable IDV or additional premium. Non-electrical accessories in bike insurance can include certain accessories fitted to the bike that are not electrically operated. Their coverage, if available, depends on the policy and insurer. Therefore, if you have accessories fitted to your bike, check whether they are covered under the policy and whether they need to be separately declared.

What are the Benefits of a Bike Insurance Policy?

There are several bike insurance benefits associated with having appropriate two-wheeler insurance coverage. If you are searching for the benefits of bike insurance, here are the most important ones:

1. Financial Protection

   Own-damage or comprehensive bike insurance can help reduce your out-of-pocket expenses for covered damage or loss to your bike.

2. Third-Party Liability Protection

   Third-party bike insurance protects against specified legal liabilities arising from injury, death or property damage caused to another person.

3. Protection Against Theft

   Comprehensive or standalone own-damage bike insurance policies can provide compensation if the insured bike is stolen, subject to the policy terms.

4. Protection Against Natural Calamities

   Eligible own-damage and comprehensive bike policies can cover specified damage caused by natural events such as floods, earthquakes and cyclones.

5. Bike Insurance Add-Ons

   You can enhance your policy coverage with eligible add-ons such as:

   • Zero depreciation cover
   • Roadside assistance cover
   • Engine Protection Cover
   • Return to Invoice Cover
   • Consumables Cover
   • NCB Protection Cover

6. No Claim Bonus

   No Claim Bonus (NCB) is a discount on the own-damage bike insurance premium that may be available for claim-free policy periods, subject to applicable terms.

7. Legal Compliance

   Having valid third-party bike insurance helps you comply with the mandatory bike insurance requirement for vehicles used on public roads in India.

Does Bike Type Affect Insurance Coverage?

The bike insurance 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.

How is Bike Insurance Premium Calculated?

The bike insurance premium depends on the type of policy and several vehicle and policy-related factors. Third-party bike insurance premiums are determined by IRDAI, while own-damage bike insurance premiums are priced based on the following factors:

• Bike make and model
• Age of the bike
• Engine capacity
• IDV
• Location
• Previous claims
• NCB
• Deductible
• Selected bike insurance add-ons

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

Knowing the types of bike insurance is only the first step. What matters when you actually need to use your policy is understanding what your bike insurance 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 in bike insurance, 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.

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 Buying Bike Insurance

Before buying a bike 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.
• Bike insurance 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.
• Bike insurance claim process: Check how to report a claim, the documents required, the inspection process and other bike insurance 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 bike insurance, bike insurance 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 insurance plans online and select a policy based on your vehicle and protection needs.

FAQs – Types of Bike Insurance Policies