What Is Bike Insurance: Meaning, Types & Coverage
Undoubtedly, bikes or any other kind of two-wheelers are the most affordable choice for Indian commuters, but it also comes with its own set of risks as they are highly prone to road accidents
With the increase of two-wheelers on the road and the soaring chances of accidents, it has become extremely crucial to have good bike insurance which not only helps you in overcoming any financial loss resulting from bike accidental damage but also protects the other person who has been hurt in any way with an involvement of your bike.
Here’s a detailed and comprehensive guide on bike insurance, kinds of bike insurance policies, its features and benefits, which one you should consider as per your needs and requirements and much more
What Is Bike Insurance?
Bike insurance is a contract between the bike owner and the insurance company, where the latter covers any damage caused to the bike due to an accident, theft, or collision. The bike insurance plays a pivotal role in safeguarding financial and legal obligations, which might arise in case of any unfortunate accident, natural disaster such as fire, landslide or man-made causes such as theft, riots, vandalism and so on.
Bike insurance policies cover all sorts of two-wheelers, such as motorcycles, scooters, moped bikes and electric bikes as well. As per the Indian Motor Tariff, 2002, it is mandatory for every bike owner to have at least a third-party bike insurance policy.
Why Is Bike Insurance Necessary?
It can prove to be extremely fatal and risky, if you own a bike and you do not have an insurance policy for it. By just paying a nominal amount for an insurance policy, one can claim quite a reasonable amount of money in the hour of need. Below are the reasons which states clearly that why it is necessary for any vehicle owner to have a bike insurance policy:
Safeguards you from Legal Fines: In India, it is illegal to drive any bike without having a valid third-party bike insurance policy. Therefore, it is mandatory to have a proper bike insurance in place which saves you from paying hefty legal fines.
Coverage for Natural and Man-Made Disasters: Insurance policies cover damage to the bike caused by natural calamities such as landslides, floods, earthquake, fire and so on. With proper insurance in place, one can easily make a claim under these unforeseen situations.
Coverage Against Theft: Theft of your bike can cause a major concern and the financial implications of losing the bike can be worse. But if your bike is insured, then you don’t have to worry much, as immediately when you report the theft of your bike, the insurance company is bound to cover the cost of replacing your vehicle.
Coverage Against Third-Party Liabilities: A third-party bike insurance which is mandatory, provides financial protection to your bike against any damages or injuries caused to a third party, with an involvement of your vehicle in an accident.
Coverage Against Own Damages: One of the most important reasons to have a bike insurance policy, is that it aids financial help to the insured bike owner for any cost incurred on repair work of damaged bikes due to accidents or any man-made or natural calamities
Key Features And Benefits Of Bike Insurance
360-Degree Protection: A bike insurance policy provides 360-degree financial and legal protection to you, your vehicle and third-party person or property, in case of the occurrence of any accident or mishap. Having a bike insurance also covers you against loss and damage arising due to theft, strike or war. While third-party insurance is mandatory, one can opt for comprehensive coverage policy to get coverage for own damages caused to your bike also.
Cashless Claim: This is one of the main benefits of a bike insurance policy. An insured bike owner can easily apply for a cashless claim, in case of any damage caused to their bike due to an accident or any mishap. All they need to get their damaged vehicle at any of the network garages, where the bill will be directly settled between the garage owner and the insurance company.
No Claim Bonus: No-claim bonus is a kind of discount which insurance companies provide for making no claim in the preceding years. Bike insurance companies provide up to 50% NCB benefit on the insurance premium which is indeed a great benefit for insured. The NCB discount can be even carried further at the time of renewal of your policy.
Personal Accident Cover: Personal accidental coverage is one of the benefits which the insured receives as soon as they insure themselves under a bike insurance policy. This cover provides coverage to the bike rider against any bodily injuries or death arising due to an accident. It is crucial to have a personal accident cover especially when you drive, but if you do not have a separate PA cover, you can definitely get it along at the time of buying a bike insurance for you.
Coverage for Long-term: Bike insurance companies have launched several long-term insurance policies which can cover your bike up to a maximum of three years. The benefit of being covered in a long-term policy is that the premium is fixed for the next three years and there will be no hassle of yearly renewal of policy. Many insurance companies also provide discounts on premium for option these long tenure bike insurance policies.
Different Types Of Bike Insurance Policies?
While buying a bike insurance, you can select from the various kinds of insurance policies based on your coverage requirement. The bike insurance in India is broadly categorized into three major kinds, which are:
Third-Party Insurance
In India, as per The Motor Vehicles Act, 1988, it is mandatory to own a third-party insurance to ride a bike on Indian roads. Third-party insurance covers all injuries, disabilities or death caused to the third-party due to an accident from the insured’s bike. However, the insured’s bike damages or theft is not covered under this plan. The third-party premiums have been already decided by the insurance regulator of India, IRDAI, which are as follows for FY 2022-2023
Comprehensive Insurance
This kind of insurance policy provides an all-rounder protection to the bike owner. It covers you, your bike and also third-party person or property from any financial damages caused. It also includes a personal accident cover for the owner-driver. One must go for comprehensive insurance to ensure full safety for your bike.
However, due to extensive coverage, this kind of insurance is more expensive than the third-party bike insurance policy. At the same time, in comprehensive insurance, the insured has the full liberty of adding optional riders such as zero depreciation cover, engine protection, key replacement and so on at an extra premium cost.
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