Why Are Riders Choosing Comprehensive Bike Insurance Over Basic Third-Party Cover?

Third-Party Bike Insurance vs. Comprehensive Bike Insurance

Motor insurance companies offer two-wheeler insurance to safeguard bikes, scooters, e-bikes, etc. Insurers mainly offer third-party and comprehensive bike insurance. Have a look at the table below to understand the major differences between the two:

Reasons Behind the Switch Towards Comprehensive Bike Insurance

There are several factors that have contributed to the shift from standard third-party bike insurance to comprehensive ones. These are some of the prominent reasons:

Rising Number of High-End Two-Wheelers

The two-wheeler segment in India has seen a notable shift in the last few years, with more riders preferring a premium motorcycle over 100cc commuters. These bikes include advanced technologies, such as Antilock Braking System (ABS), Fuel Injection (FI), and digital screens. Since these high-end systems are expensive and more prone to several risk factors, comprehensive bike insurance provides a wider financial coverage.

Furthermore, the sale of Electric Vehicles (EVs) is also on the rise. The battery for an EV accounts for about 40% to 50% of its cost. Hence, owners need an E-bike insurance that protects the battery against damage from accidents, power surges, and more.

The Option to Include Add-ons

One of the biggest advantages of buying a comprehensive two-wheeler insurance policy is the availability of bike insurance add-ons. You can opt for several add-ons to get a wider coverage at an additional cost. Here are some examples:

• Zero Depreciation Cover: With the zero-dep bike insurance, the insurance company does not deduct the depreciation amount from the parts repaired or replaced during an accidental claim. However, the detailed coverage depends on the terms and conditions of your policy.
• Engine Protection Cover: It provides coverage for the engine and gearbox of a two-wheeler in case of damage caused by water ingress and oil leakage. The engine protection add-on for bikes is specifically very important for flood-prone areas.
• Return to Invoice (RTI) Cover: This add-on provides the original invoice amount of your two-wheeler, in case it is declared a total loss. Comprehensive bike insurance only reimburses a depreciated amount or the IDV of your bike, whereas the RTI add-on helps to get a higher claim payout.
• Consumables Cover: It provides coverage for consumables, like engine oil, grease, brake fluid, nuts and bolts, and more. These are not covered in a standard two-wheeler insurance policy.

Enhanced Financial Coverage

A comprehensive bike insurance cover offers broader coverage against several unpredictable circumstances, including:

• Theft
• Total loss
• Natural calamities
• Fire
• Man-made disasters, etc.

This coverage ensures you get a higher claim amount in times of need.

Cashless Repair Network

Most bike insurance companies provide a wide range of workshops for cashless repairs. These garages are situated across different Indian cities for a hassle-free claim settlement process. Riders can visit these garages to avail a claim without having to pay any expenses upfront. Insurers provide a detailed list of their garage network either through their official website or the policy documents.

No Claim Bonus (NCB)

Insurance providers ensure that bikers with good driving history and no claims in a policy year are rewarded with a discount. This is known as the No Claim Bonus in bike insurance and can be availed when renewing your policy. Here is a table to understand how to calculate NCB :

Let us also understand the same using an example:

For example, the own damage premium for your 1st year bike insurance is Rs. 12,000 and you do not raise any claims, your two-wheeler insurance renewal premium for the 2nd year will be as follows:

FAQs - Why Are Riders Choosing Comprehensive Bike Insurance Over Basic Third-Party Cover?