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Bike insurance, also known as two-wheeler insurance, is a policy designed to provide financial protection against damages to your two-wheeler caused by accidents, theft, fire, or natural and man-made disasters. In addition to covering your vehicle, the policy also includes mandatory third-party liability coverage as required by the Motor Vehicles Act, 1988. This ensures compensation for damage to another person's vehicle or property, or for injury/death of a third party caused by the insured two-wheeler. For all two-wheeler owners, having at least third-party bike insurance is legally compulsory.
Bike insurance policies in India typically cover a wide range of two-wheelers. The types of two-wheelers covered under bike insurance policies can include:
Standard motorcycles, including commuter bikes, sports bikes, and premium motorcycles, are covered under bike insurance policies.
Scooters or scooties, with a step-through design and automatic transmission, are smaller and lighter compared to motorcycles. Their compact size and fuel efficiency make them ideal for city commuting.
Electric two-wheelers, including electric bikes and scooters, are powered by rechargeable batteries and electric motors. They are becoming increasingly popular due to their eco-friendly nature.
Mopeds are lightweight motorized bikes with engine capacities ranging from 50-100 CC. They are affordable and primarily used for short-distance travel.
Bike insurance provides comprehensive financial protection and legal compliance, ensuring peace of mind and security against unexpected events on the road. Here are some key benefits of bike insurance:
Here are the different types of bike insurance policies, designed to provide tailored protection for your specific needs and ensure comprehensive financial and legal security.
Third-party bike insurance is the most basic form of coverage and is mandatory by law. This policy covers the legal liabilities that arise if your bike causes damage or injury to another person, their vehicle, or property. For example, if you're involved in an accident and damage someone else’s property or injure a third party, this insurance will cover the expenses. However, it does not cover any damages to your own bike or injuries to yourself. Third-party insurance is an affordable option for those who only need to meet the minimum legal requirements without opting for extensive coverage. It's a good choice for budget-conscious riders who don't mind taking on the risks associated with their own bike's damage.
Comprehensive bike insurance provides the most extensive coverage, combining third-party liability with protection for your own bike. This policy covers damages to your bike caused by accidents, theft, fire, natural disasters, or vandalism. In addition to covering third-party damages, it also includes personal accident cover for the rider, ensuring financial support in case of injuries or death due to an accident. Comprehensive insurance is ideal for riders who want complete peace of mind, knowing that both their vehicle and their personal safety are fully protected. While it’s more expensive than third-party coverage, it provides greater financial protection in case of unforeseen events
Standalone own-damage insurance is designed for those who already have third-party insurance but want additional coverage for their own bike. This policy covers damages to your motorcycle from accidents, theft, fire, or natural disasters. However, it does not provide coverage for third-party liabilities, so it’s only suitable for individuals who already have a separate third-party policy. Standalone own-damage insurance is a good choice for people looking for extra protection for their bike without the need for full comprehensive coverage. It offers more affordable protection for your bike’s damages while keeping third-party coverage separate
| Coverage | Third-Party Insurance | Own Damage Insurance | Comprehensive Insurance |
|---|---|---|---|
| Damages to Third-Party Vehicle | |||
| Damages to Third-Party property | |||
| Personal Accident | |||
| Theft of Car | |||
| Customize your IDV | |||
| Damage or loss due to fire | |||
| Injury or death of a third party | |||
| Mandatory | |||
| Damage or loss due to accident | |||
| Damage or loss due to natural calamity |
Several factors influence the premium you pay for your bike insurance. Understanding these can help you make informed decisions and manage costs effectively. Here's a breakdown:
The IDV is essentially the current market value of your bike. It represents the maximum amount you’ll receive if your bike is stolen or damaged beyond repair. The premium you pay for your motorcycle insurance is directly linked to the IDV. Comprehensive insurance policies include IDV, and the higher your IDV, the higher your premium will be. Essentially, a higher IDV means greater coverage but at a higher cost.
The type, brand, and model of your bike significantly impact the premium. High-end or luxury bikes, as well as powerful motorcycles or superbikes, typically have higher premiums due to their higher repair and replacement costs.
Bikes with larger engine capacities generally have higher premiums because they are considered riskier to insure due to their increased speed and potential for causing more damage in case of an accident.
A third-party insurance policy is cheaper because it covers only third-party damages. However, comprehensive insurance, which covers both third-party and own-damage, is more expensive as it offers more extensive protection.
The area where you live and ride your bike plays a key role in determining your insurance premium. For example, if you're in a large city with heavy traffic, the chances of accidents or theft are higher, so your premium is likely to be on the higher side. In contrast, if you're in a quieter, less congested area, the risk is lower, which could result in a more affordable premium.
NCB (No Claim Bonus) is a reward for not making any claims during your policy term. If you don't file any claims, you become eligible for a discount when renewing your bike insurance. The discount percentage increases with each claim-free year, which helps reduce your premium for the next policy term.
Here are some key reasons why you should buy bike insurance:
In many countries, including India, third-party bike insurance is mandatory by law. According to the Motor Vehicles Act, every bike owner must have at least third-party insurance to legally ride on the roads. Failing to comply with this requirement can lead to fines, penalties, or even the suspension of your vehicle's registration.
Bike insurance helps protect you from significant financial losses in case of accidents, theft, or damage. If your bike is involved in an accident and causes damage to a third party or their property, third-party insurance will cover the expenses, saving you from hefty out-of-pocket costs. Comprehensive insurance, on the other hand, covers both third-party liabilities and damages to your own bike, ensuring you don’t face financial hardship in case of unfortunate events.
Bike insurance provides coverage if your bike is stolen or damaged due to natural disasters like floods, earthquakes, or fire. Without insurance, you could face a significant financial burden replacing your bike, but with the right coverage, your insurer will help you recover the costs.
If you don’t make any claims during your policy period, you can earn a No-Claim Bonus (NCB) when you renew your policy. This bonus reduces your premium for the next year, offering you a financial reward for being a safe rider. Over time, the NCB can lead to significant savings on your bike insurance premiums.
Bike insurance policies can be customized with add-ons like zero depreciation cover, engine protection, or roadside assistance to enhance coverage and provide more specific protection. These add-ons are especially useful if you want extra coverage for parts or services that are not included in a standard policy.
In case of the rider’s death or permanent disability due to an accident, bike insurance, especially personal accident cover, provides financial assistance to the rider’s family. This can help cover medical expenses, daily living expenses, and loss of income, offering much-needed support during challenging times.
You have to provide the following documents as proof of identity and proof of address:
Add-ons are additional covers that you can include in your bike insurance policy to enhance its coverage and provide greater financial protection. Here are some popular add-ons available for bike insurance policies:
Zero Depreciation Cover is an essential add-on for bike owners who want to ensure they are fully compensated during a claim without any deductions for depreciation. Normally, when you make a claim, the insurer will reduce the payout based on the depreciation of the bike’s parts. However, with Zero Depreciation Cover, you receive the full replacement cost of the damaged parts, without any depreciation being applied. This is particularly valuable for new bikes or expensive models, as it guarantees that you won’t lose out financially due to depreciation. By opting for this add-on, you ensure that your bike repairs or replacements are fully covered, saving you from unexpected costs and making your insurance more comprehensive.ng much-needed support during challenging times.
Roadside Assistance Cover is an incredibly useful add-on for riders who frequently embark on long journeys or ride through unfamiliar routes. This service ensures you’re never left stranded by offering 24/7 emergency support for a variety of issues, including breakdowns, flat tires, battery failures, or running out of fuel. It typically includes services such as towing, emergency repairs, fuel delivery, and assistance with tire changes. With this cover, you can travel with confidence, knowing that help is always just a phone call away. It’s an essential add-on for riders who regularly travel on highways or through remote areas, as it makes your rides safer, more convenient, and free of stress.
Engine Protection Cover is a valuable add-on for riders who navigate through areas prone to floods, rough roads, or challenging terrains. This cover safeguards your bike’s engine from damages caused by issues like water entering the engine, oil leakage, or other non-accidental incidents that are often excluded from standard bike insurance policies. Since engine repairs can be expensive, this add-on provides peace of mind by covering those costs, helping you avoid the financial strain that can come from engine-related damages. With this cover, your bike’s engine and vital components are protected, ensuring that any unforeseen engine issues are handled efficiently and cost-effectively.
Consumables like engine oil, lubricants, brake fluid, and other small but essential parts are typically not covered under a standard bike insurance policy. Yet, these items play a crucial role in keeping your bike running smoothly. The Consumables Cover add-on ensures that you are protected against the costs of replacing or repairing these consumables if they are damaged in an accident. This add-on helps avoid unexpected out-of-pocket expenses, providing extra peace of mind knowing that even the smaller parts of your bike are covered.
In case of total loss or theft, the insurer usually pays the Insured Declared Value (IDV) of the bike, which is often lower than the original purchase price. However, with the Return to Invoice Cover, this gap is bridged. The add-on ensures that you receive the full purchase price of the bike, including registration fees, taxes, and any other charges, instead of just the depreciated IDV. This way, you’re compensated with the actual amount you paid when you bought the bike, providing complete financial protection.
Ensure you have the following documents when filing a Two-wheeler insurance claims:
Notify your insurer immediately about the incident.
File an FIR in case of theft, accident, or third-party damage.
Submit required documents like the policy copy, FIR, repair bills, and claim form.
Get your bike inspected for damages (if applicable).
The insurer will process the claim and settle the amount based on the policy terms.
Type of coverage (third-party or comprehensive).
Insured Declared Value (IDV).
Engine capacity (CC) of the bike.
Age of the bike.
Rider’s location and claims history.
Selected add-ons like zero depreciation, roadside assistance, etc.