Types of Bike Insurance Coverage
Before you dive into bike insurance coverage, you must have the correct knowledge about the types of bike insurance policies in India. Usually, there are two types of plans offered by motor insurance companies:
This policy is also known as a liability-only policy and offers the minimum mandatory coverage. As a two-wheeler owner, you must have at least this third-party bike insurance cover. This policy provides coverage against all types of third-party liabilities. Suppose your insured bike causes an accident that results in the injury/death of a third party or damages to a 3rd party property. In that case, this policy provides financial and legal coverage for it.
This policy covers damages caused to your own vehicle and third-party liabilities both. It financially assists the insured bike for any cost incurred for repairing or replacing the damaged bike due to accidents or other insured perils. Moreover, with a comprehensive bike insurance policy, you can purchase various add-ons to enhance the coverage.
What Should Your Bike Insurance Cover?
If you wish to buy only mandatory third-party bike insurance coverage, you only have financial coverage for third-party liabilities. However, if you want to obtain a comprehensive bike policy, you will have coverage against the following instances:
- Natural Calamities Coverage
A comprehensive bike insurance policy covers the damages/losses incurred due to floods, earthquakes, fire & lightning, storms, cyclones, typhoons, landslides, explosions & self-ignition, etc. However, you must check the list of inclusions in your policy under this category.
- Man-made Disasters Coverage
Man-made disasters include the losses/damages caused to your insured bike due to human activities. These damages could be due to an accident. In addition, it provides coverage for mishaps due to malicious activities like thefts, vandalism, strikes, riots, etc. The policy also covers the transit damage when your two-wheeler is transferred via road, rail, water, or airways.
- Third-party Liabilities Coverage
As third-party liability is a mandatory cover in India, a comprehensive bike insurance policy offers coverage for it.
- Personal Accident Coverage
During a road accident, some chances might cause temporary or permanent disabilities to the bike owners. Hence, Personal Accident coverage provides compensation for such injuries/deaths of the insured if they are riding the bike.
What is Not Covered in Bike Insurance Policy?
Mentioned above is bike insurance coverage. Now, here are the exclusions of a bike insurance plan:
- Loss of accessories
- Any legal liability on the part of a paid driver
- Personal accident coverage for the pillion riders
- Any damages caused due to the negligence of the driver
- Normal wear & tear of the automobile
- Driving under the influence of intoxicants such as alcohol, sedatives or drugs.
10 Tips to Reduce Motorcycle Insurance Premiums
You should try to get all the necessary features that you need in a bike insurance plan, even if it comes with an additional premium. However, if the premium is your top concern read on and find the tips to reduce bike insurance premiums:
- Select a base model to get an insurance plan that falls within your budget. Moreover, the spare parts replacement cost and bike repair cost will be reasonable.
- Avoid opting for modified or unusual bikes, as there spare parts replacement or repairing cost is quite expensive.
- The less your two-wheeler is plying on the road, the more it is exposed to risk. Your insurance provider considers this factor and offers you a cheaper insurance premium.
- It would be less expensive if you paid your insurance premium in full when you bought an insurance plan. If you want to pay monthly instalments, it will be costlier.
- If you’ve not filed any claims for a specific time period, you can enjoy the NCB benefits during policy renewal.
- At the time of renewal, ensure you do not settle for your existing insurance provider. Look out for other insurance providers willing to offer you better benefits for a competitive premium. You can visit Policybazaar.com that will help you compare different two-wheeler insurance plans and find one within your budget.
- Always keep your two-wheeler safe and secure. It is best to park it at an authorized parking zone instead of leaving it unattended on the streets.
- The more riding experience you have, the less risky you appear in front of your insurance provider. It means that you will have to pay the minimum premium. As insurance provider might check your driving record.
- Try to buy your home, car, health, etc., insurance from a single general insurance company so that there is a scope for a discount.
Wrapping it up!
If you don’t want to buy comprehensive two-wheeler insurance, it is alright. However, you need to purchase third-party insurance to fulfil your legal obligations. Otherwise, you can be penalized. Be a responsible citizen of the country by ensuring you have an active bike insurance policy.
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^The renewal of insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for a transaction may vary subject to additional data requirements and operational processes.
^The buying of Insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for transaction may vary subject to additional data requirements and operational processes.
#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