What to Look for When Buying Bike Insurance?


What to Look for When Buying Bike Insurance?

As per Section 146 of the Motor Vehicles Act 1988, you cannot drive a vehicle without proper two-wheeler insurance. The clause, “Necessity for insurance against third party risk” states that no person shall drive a motor vehicle in a public place unless there is an insurance policy complying with the Motor Vehicle Act for the same.

Besides its legality, bike insurance is a rational decision as well. Nowadays, with goal-based investment becoming crucial in all financial decisions, comprehensive bike insurance becomes a strategic decision.

Bike Insurance is important in all aspects, whether you consider the risk of accidents causing damage to the bike, the rider or loss to a third party. It is also essential in cases of theft when you face a total loss. Getting bike insurance is a sound financial decision and must be considered while buying a two-wheeler.

Why do you need bike insurance?

  • Mandatory as per law: According to the Motor Vehicles Act 1988, a bike owner must have an insurance policy from an authorized insurance provider to ride or drive the vehicle on Indian roads. If you do not have a valid insurance policy, you can get charged with a penalty.                                                                           
  • Risk of accidents: Bikes are very prone to accidents in India. Even if you are a well-experienced and safe rider, you can sometimes be exposed to more risk due to weather or road conditions.                                    
  • Higher theft ratio: As per the Crimes Statistics of India report 2019, there were 201370 motorcycle theft reports. The higher rate of theft increases the vulnerability of bike owners. This requires you to have a comprehensive insurance policy that has you covered.                                                                                 
  • Chance of damage due to calamities: Whether man-made or natural, disasters like earthquakes, floods, or fires can damage your motorbike. For such events, you require a policy to cover for such a mishap.

What is Bike Insurance?
Bike insurance is a financial cover for any loss that may arise in the event of covered clauses of the Insurance. The range of coverage and the amount of financial protection are pre-decided while taking such a policy. Let us take a look at the bike insurance policies available in the market.

Types of bike insurance plans:

There are two types of bike insurance policy prevalent in India:  

 Particulars       Third-party bike insurance     Comprehensive bike insurance

Basic policy that covers loss/damages incurred to the third party property

           (Vehicle or Property)

Comprehensive policy in addition to third-party insurance cover, also adds protection for you & your vehicle
Inclusions Third-Party cover and Personal Accident cover Third-party cover, own damage cover, and other risks like natural and man-made disasters
Advantages Financial protection in case of accidents for personal injuries and third party damage claims Financial protection for your vehicle, personal injuries, and third party damages
Disadvantages It does not cover personal vehicles This policy has a higher premium than that in third-party policy
Customization No customization available Customization available through add-on covers


Add-on Facilities on Bike Insurance

  1. Zero depreciation cover: Depreciation refers to the loss in the value of your asset (bike in this case). The insurance policy provider provides a zero depreciation cover to policyholders under this add-on. Leaving a few, most of the providers offer this facility.
  2. Roadside assistance cover: While traveling, you are constantly exposed to a risk of sudden breakdown where you need emergency roadside assistance. This add-on feature helps you stay protected against such an event.
  3. Return to invoice cover: Under this add-on, the policyholder is entitled to get the full value of purchase invoice cover for protection against the total loss of your vehicle.
  4. Consumables cover: A bike comprises many consumables, such as oil filters, grease, screws, etc., which are covered under this type of add-on.
  5. Personal belongings cover: In case of accidents, there are chances of loss of personal belongings. This add-on protects against such an occurrence to a prescribed limit.
  6. Key replacement cover: Provision for a replacement key is under this add-on scheme.

With the variety of bikes in the market and the social standing of bike owners, everyone has a unique set of requirements with the type of protection they require. A policy should be chosen after comparing the available options and their inclusion and possibility of customization to arrive at the desired protection profile.

What Should We Look for while Deciding on Bike Insurance?

Trusted authorized insurer: A bike insurance policy is a financial investment decision and requires ample research before making a decision. Ideally, a bike insurance provider should be a trusted insurance partner, with a team of experienced industry professionals and a large existing customer base.

Claim settlement process: A smooth and hassle-free claim settlement process should be one of the most important pre-requisites of the policy to ensure that no further damage happens. A variety of reviews and industry critics keep on analyzing the service provider to bring clarity to customers.

Renewal process: In today’s world, an online and easy-to-do renewal policy is necessary. As renewal is done with an existing insurance provider, the process should be done in a matter of minutes.

Customer support: Customer service of the insurance provider plays a vital role. It should be checked before selecting the service provider.

Required plan option: Before deciding on the insurance plan, you should categorize your needs or talk to an expert and ascertain if a customized insurance policy is available.

Easy documentation: A hassle-free and systematic documentation system makes bike insurance policy more lucrative.                      

Wrapping Up
With the rising fuel prices and increasing traffic, bikes are an efficient way for daily travel. With the increasing number of vehicles in India, there is a need for a specialized insurance scheme that caters to the specific requirements of a bike owner. Bikes today come in different price ranges, from basic to high-end bikes available in the country. Therefore, a customized insurance solution is essential for customer satisfaction.


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