How Urban Riders Prioritise Coverage Choices
- Home
- How Urban Riders Prioritise Coverage Choices
Riding on Indian roads is full of unexpected incidents, making it dangerous to operate a two-wheeler. According to the Road Accidents in India 2023 report by MoRTH, two-wheelers account for the highest share of road accident fatalities in the country.Urban riders face even greater exposure due to dense traffic, frequent stop-and-go riding conditions, and limited reaction time. This rising figure is making riders prioritize their two-wheeler insurance coverage choices. As a result, many urban commuters are shifting from basic third-party insurance to comprehensive bike insurance plans that offer wider financial protection. Read ahead to understand how urban riders can prioritise their coverage choices more effectively.
Why is a Comprehensive Two-wheeler Insurance Required?
While there are several reasons necessitating a comprehensive two-wheeler insurance policy, here are some of the prominent ones:
- Rising Traffic Congestion: With increasing traffic congestion across Indian cities, urban riders face frequent braking, lane filtering, and low-speed collisions, increasing the likelihood of own-damage claims.
- Bad Road Conditions: Ongoing urban infrastructure projects often leave roads with potholes, diversions, and uneven surfaces, which significantly increase the risk of skidding and suspension damage for two-wheelers.
- Financial Assistance: A comprehensive bike insurance provides overall financial protection for your two-wheeler from damages against fire, natural calamities, man-made disasters, etc.
- Value-added Options: A comprehensive bike insurance policy offers multiple add-on options, such as 24x7-roadside assistance cover, engine protection coverage, consumables cover, etc., making it suitable for daily urban commuting.
- Technology Advances: Multiple technological developments in the automobile sector, such as a TFT display, sensor-based systems, ECU damage risk, and higher spare costs. These components are expensive to repair and often require specialised servicing, making comprehensive two wheeler insurance coverage essential.
Differences Between Third Party and Comprehensive Bike Insurance
A comprehensive two-wheeler insurance plan offers a wider coverage than a basic third-party bike insurance plan. Here are some of the significant differences between the two:
| Features | Third-Party Bike Insurance | Comprehensive Bike Insurance |
| Legal Requirement | Required | Not Required |
| Coverage Scope | Coverage for expenses related to third party liabilities. | Coverage for both own damages and third party liabilities . |
| Own Damage (OD) | Not covered | Covered. Provides protection against fire, natural disasters, man-made calamities, and more. |
| Add-on Covers | Not available (except PA cover mandatory add-on cover). | Available, including zero depreciation cover, engine protection cover, roadside assistance cover, and more. |
| Premium Cost | Set by the IRDAI, depending on the capacity of a vehicle’s engine. | Depends on the location, the Insured Declared Value (IDV) selected, age, etc. |
| No Claim Bonus (NCB) | Not available | NCB discounts and entitlements are available at the time of renewal. |
| Ideal For | Old bikes with limited use and low market value. | Daily commuters, expensive two-wheelers, and EVs. |
What is Covered in Comprehensive Bike Insurance?
A comprehensive two-wheeler insurance provides coverage in the following cases:
- Fire: Any damage arising from fire, whether it is partial or complete damage.
- Accidents: Accidental damage repairs are covered for both major and minor damages.
- Theft: Your insurance company provides the IDV value of your bike if it is stolen.
- Natural Calamities: It provides coverage for damages caused by events like earthquakes, floods, etc.
Add-Ons Available with Comprehensive Bike Insurance
The option to choose the required add-ons also provides riders with enhanced coverage. These are some of the most common bike insurance add-on covers:
- Zero Depreciation Cover: The insurance company does not deduct the depreciation component from the parts mentioned in your policy, in case of accidental damage.
- Engine Protection Cover: Provides compensation for damages to the engine and gearbox of your bike, due to water ingress and oil leakage.
- RTI Cover: Your insurer provides the actual invoice amount of a motorcycle in case of its total loss.
- Consumables Cover: It covers the costs related to engine oil, brake fluid, grease, and other consumables.
- Roadside Assistance: It includes roadside assistance services like battery jumpstart, spot repairs, fuel delivery, and more.
FAQs - How Urban Riders Prioritise Coverage Choices?
-
What is the difference between third party and comprehensive bike insurance?
While a third party bike insurance plan only covers the costs related to third party liabilities, a comprehensive bike insurance policy provides wider coverage. A comprehensive two-wheeler insurance plan covers third party liabilities and damages from fire, theft, natural calamities, and more. -
Which insurance is best for a two-wheeler?
You should choose a comprehensive bike insurance plan for coverage against both third party liabilities and own damage. -
What are the advantages of a zero-depreciation cover?
A zero-depreciation add-on cover ensures the factor of depreciation is not eliminated from the parts replaced during an accidental repair. However, the coverage for different parts is as per the terms of your policy. -
Which add-on covers are available with a comprehensive bike insurance plan?
Add-on covers available with a comprehensive bike insurance plan include zero depreciation cover, consumables cover, engine protection cover, and more. -
Is a bike insurance plan mandatory in India?
A third party bike insurance plan is compulsory for all two-wheeler owners in India. A penalty is charged for riders riding without a valid bike insurance policy.
