In India, if you are a bike owner, as per the Motor Vehicles Act, you must hold valid car bike insurance. Driving without insurance can attract a heavy penalty. It is mandatory to have at least a third-party insurance cover as per the law. However, it is better to purchase comprehensive bike insurance as it provides extensive coverage.
What does bike insurance cover?
The coverage scope of your policy depends on the type of bike insurance you have and the plan you have purchased. Broadly, there are two types of bike insurance: third–party and comprehensive insurance.
Third-Party Bike Insurance
It is the most basic form of two-wheeler insurance. In the event of an unfortunate accident, if you cause damage to the third party’s bike or other assets, the insurance company will cover the repair cost. Also, if the third party suffers from an injury, the insurance company will pay for their treatment expenses. Lastly, it pays for losses in the event of the death of a third party.
Comprehensive Bike Insurance
Unlike third-party insurance, which doesn’t provide extensive financial protection, comprehensive insurance offers coverage against third-party liabilities and own damage. Comprehensive insurance covers:
- Cover Against Theft
If your bike gets stolen, the insurer will compensate for your loss. The maximum compensation you get is equal to the IDV (Insured Declared Value).
- Cover Against Natural Calamities
Natural calamities like floods, storms, and earthquakes generally cause grave damage to life and properties. If your bike gets damaged in any natural disaster, the insurer will cover the repair cost.
- Cover Against Man-Made Calamities
The insurance company offers cover against man-made calamities like theft, burglary, riot, etc.
Is Bike Insurance Expensive?
No, bike insurance is not expensive. There are many plans that are affordable to all. The cost or premium of bike insurance depends on several factors, which are discussed below:
- Type of Policy
The premium of comprehensive insurance will be higher compared to third-party insurance. This is because comprehensive insurance covers third-party liabilities as well as own damage.
The deductible is the percentage of the claim amount that you voluntarily agree to pay from your pocket for repairs when you raise a claim. Therefore, if you opt for a higher deductible, your premium will be lower, and vice versa.
- Security Devices
Installing security devices in a bike can ensure its protection from theft. Therefore, it lowers the risk for the insurance company. Hence, the insurer might reduce the premium amount if you have installed an anti-theft alarm or other devices.
Add-ons provide enhanced financial protection to the policyholder. Some of the most common add-ons are personal accident cover, zero depreciation cover, etc. However, to purchase add-ons, you must pay an extra premium.
- Online Purchase
Buying bike insurance online is not only easy but also cost-effective. Many insurance companies offer exclusive discounts to online bike insurance buyers. Also, when you purchase a policy online, you directly deal with the insurer, and you need not pay any additional charges or fees to the agents, which automatically lowers the insurance cost.
Get Bike Insurance for Financial Protection
Now that you know what your bike insurance covers and how much it costs, do your due diligence, and purchase a policy that best suits your needs.