Given the frequency of accidents on Indian roads, bike insurance is critical. Standard policies cover third-party liability for injury and death claims resulting from crashes involving your two-wheeler. Additionally, its damage cover handles bike theft, accidental damage and other losses.
Comprehensive plans offer extensive protection, including both third-party liability and own damage covers. On the other hand, essential third parties only cover injury and fatality claims for third parties in an accident. Though standard covers protect against accident, theft and third-party losses, normal wear and tear of bike parts is excluded.
Comprehending what is included and excluded in your policy is essential to getting complete financial and legal protection for your bike.
Table of Contents
Types of bike insurance
There are primarily three kinds of bike insurance that provide different levels of coverage:
1. Third-party bike insurance coverage
This fundamental policy pays for injury or death claims to a third party when your bike is responsible for an accident. Crucial points covered:
- Compensates third parties for loss of life, disabilities or hospitalisation costs
- Legally mandatory cover under the Motor Vehicles Act, 1988
- No protection for damage to your bike
While third-party insurance is compulsory, more comprehensive coverage is advisable, given rising claims.
2. Comprehensive bike insurance plan
The most popular option, this policy offers extensive protection, including:
- Third-party liability for deaths, disabilities and medical expenses
- Covers accidental damage, theft and other losses for your bike
- Provides claims for natural and human-made disasters
- Option to add bonuses like zero depreciation and personal accident cover
Comprehensive insurance gives end-to-end coverage and peace of mind.
3. Standalone own damage (OD) bike insurance
As the name suggests, standalone own damage plans cover only their damage without third-party liability.
- Insures bike damage due to accidents, theft, fire, floods and other causes
- Lower premiums than comprehensive insurance
- Useful for old bikes where third-party liability is not necessary
What should your bike insurance coverage include?
While standard bike plans provide baseline protection, getting the right add-ons per your requirements is critical. Carefully evaluate the following extra covers:
1. Natural calamities
Nature’s destructive events, such as floods, storms, earthquakes, etc., can damage your parked bike. This provides financial aid against such calamities beyond one’s control. It is beneficial for bikes left on the street or in flood-prone localities during monsoons.
Protection against acts of God gives you the peace of mind to park your bike safely outdoors without worrying about weather damage.
2. Man-made disasters
Riots, strikes, malicious activities, and other artificial crises pose bike loss risks like natural disasters. Choosing this rider ensures you get a claim settlement even for damage caused by human-created disturbances, not just accidents.
With covered risks, including human-led events, you get protection against natural and artificial bike threats.
3. Enhanced third-party cover
Beyond the primary third-party liability for injury and death claims, you can expand protection as per legal requirements for third-party property damage.
For instance, if your bike crashes into someone’s house, causing significant structural harm. This add-on gives a wider public liability shield. Having enhanced third-party cover also protects you from more comprehensive legal liabilities.
4. Personal accident insurance
Two-wheeler accidents can result in significant lifestyle disruptions and income losses if the rider faces disabilities or death. In such cases, personal accident cover for bike insurance provides financial assistance.
You can secure protection for disability, loss of income, children’s education, etc., in case of unfortunate incidents. This rider is strongly recommended to safeguard yourself and your family against accident adversities.
What bike insurance does not cover?
While bike policies offer wide-ranging protection, some exclusions apply:
- Normal wear and tear of bike parts
- Mechanical or electrical breakdowns
- Damages occurring outside the policy period
- Losses arising from nuclear causes
- Consequential financial losses
- Depreciation due to ageing
- Injuries to uninsured riders, pillions
- Accidents caused by intoxication
- Thefts arising due to negligence
- Damage from terrorism, pollution, pandemics
Benefits of bike insurance
The significant advantages of securing comprehensive bike insurance coverage include:
- Financial protection for asset damage and third-party liability claims
- Cashless repairs at authorised garages
- Fast-track claim processing for quick settlement
- Savings on more accessible renewals without medical checks
- Complete peace of mind against uncertainties
- Careful riding and proper insurance ensure the utmost safety
- Comprehensive plans guard bikes from damage, theft and legal problems
- Full coverage for you and your two-wheeler’s safety
Key things to consider while selecting a bike insurance
Choosing good bike insurance means assessing various aspects for maximum safety. Some key points:
1. Coverage needs
Judge your protection needs based on bike use, parking spot, risk of accidents, etc. If you use your bike often, choose broader comprehensive policies instead of basic third-party policies.
Add-ons like personal accident cover, zero depreciation, etc., also provide better protection.
2. IDV value
Ensure your bike’s Insured Declared Value (IDV) is accurate during policy purchase. IDV is the maximum amount insured and will be paid if your motorcycle is stolen or damaged beyond repair. Check depreciation schedules to set the right IDV.
3. Company reputation
Always opt for policies from leading nationalised, private, and standalone bike insurance providers. Before purchasing, check claim settlement ratios, customer reviews, and grievance redressal records online. Avoid insurers with whom you are not familiar.
Conclusion
With a growing number of bikes and mishaps on Indian roads, bike insurance coverage is critical. But before picking the appropriate policy, properly assess your protection needs, extra covers required, and limitations.
Apart from that, if you want to know about How Tow Truck Financing Helps in Expanding a Towing Business Fleet then please visit our Automobile Category.
