Riding a bike can be an exciting experience, but it is not without danger. Accidents can happen with any vehicle, and if you own a motorbike, you know the consequences can be serious. This is why it is important to have adequate bike insurance coverage.
Consider this: You just bought your ideal bike and can’t wait to get it on the road. It’s your pride and joy, and you’ve invested a lot of money in it. Unfortunately, one day while riding, you are involved in a collision, and your bike is seriously damaged.
You will be responsible for the full cost of the repairs if you do not have insurance, which can be a major financial hardship. This is where bike insurance comes in handy. It aims to protect you financially in the event of a motorbike accident, theft or damage.
But before moving ahead, let us know about bike insurance, what it is and why it is important.
What is bike insurance and why is it important?
Bike insurance is a type of insurance that protects your motorcycle or scooter against multiple perils such as accidents, theft and natural calamity damages. If your bike is damaged or stolen, the insurance company will cover the cost of repair or replacement in exchange for the premium paid.
Bike insurance is important as it protects you financially in the event of an accident, theft, or other unforeseen events that damage your motorcycle. In some countries, at least a basic level of third-party insurance coverage for your motorbike is required by law to protect other road users in the event of an accident.
Without insurance, if your bike is damaged or stolen, you will be solely responsible for meeting the cost of repair or replacement, which can be extremely expensive. Bike insurance not only keeps you financially secure, but it also gives you peace of mind in case of an unforeseen calamity.
Here are some of the different types of bike insurance plans that one must keep in mind while selecting one.
Different types of bike insurance plans
There are three types of bike insurance policies available:
Third-party insurance: This is the most basic type of bike insurance plan, and it completely covers the damages caused to a third party in an accident. In many countries, it is required by law to have at least third-party insurance coverage for your motorbike.
Third-party, fire and theft insurance: This type of insurance policy covers third-party damages as well as theft and fire damage to your bike.
Comprehensive insurance: This is the most complete type of bike insurance plan, covering damages caused to third parties involved in the accident as well as damages caused to your bike due to accidents, theft, fire, natural calamities and other unforeseen events.
Below are some commonly accessible bike insurance benefits.
Benefits of bike insurance
There are many benefits to having bike insurance, which include:
Financial protection: Bike insurance protects you financially in case of an accident, theft or damage caused to your bike. The insurance provider will cover the cost of repairing or replacing the bike, which can be quite expensive.
Legal compliance: To ride a bike on public roads in most countries, you must obtain at least third-party liability insurance. Bike insurance helps you meet legal requirements and avoid fines.
Personal accident cover: Many motorbike insurance packages provide personal accident coverage for the policyholder. This coverage provides financial assistance in the event of accident-related injury or disability.
Protection against natural disasters: Some bike insurance policies also cover natural calamities like floods, earthquakes and cyclones. This can be useful if you live in a disaster-prone area.
No-Claim Bonus (NCB): You are eligible for No-Claim Bonus if you do not make any claim during the policy term (NCB). NCB is the reduction in the premium payable for the next policy term.
Third-party liability cover: If you cause an accident that causes injury or death to a third party, you are legally bound to pay for the damages. A bike insurance policy will protect you against such claims by providing third-party liability coverage.
Some of the key features and benefits are almost the same, but their functions are different in choosing bike insurance.
key features of bike insurance
Third-Party Liability Cover: This is the most basic and essential coverage in bike insurance. It covers the policyholder against any legal liability arising out of injury, death, or damage to a third-party property of the insured bike.
Comprehensive Cover: This is an optional coverage that gives a more comprehensive protection package, which includes coverage for theft, natural calamity damages and personal injury coverage for the rider.
Add-On Covers: Insurance companies offer a variety of add-on covers that can be purchased to increase the extent of coverage. These may include engine protection insurance, pillion rider insurance, zero depreciation insurance, roadside assistance insurance, etc.
No-Claim Bonus (NCB): It is a bonus given by the insurance company to those policyholders who do not file any claims during the term of the policy. NCB is the reduction in the premium payable for the next policy term.
IDV (Insured Declared Value): IDV is the maximum amount that the insurance provider will pay in case of theft or total loss of the bike. It is calculated by deducting the current market value of the bike from its depreciation.
Renewal: Bike insurance policies need to be renewed regularly to maintain coverage. Many insurance companies allow you to renew your policy online.
Exclusions: Bike insurance policies include exclusions, which are conditions or events that are not covered by the policy. It is important to read the policy statement carefully to understand the exclusions.
While getting bike insurance it is important to understand the key components of the policy to make an informed selection.
Add-ons available for bike insurance
Depending on your demands and budget, you can choose from a variety of bike insurance add-ons. Some examples of popular add-ons are:
Zero depreciation cover: This add-on covers the depreciation of the parts of your bike and allows you to file a bigger claim.
Roadside assistance: This add-on helps you if your bike breaks down in the middle of the road or you run out of gas.
Personal accident cover: This add-on pays you if you suffer permanent disability or death as a result of an accident.
Engine protection cover: This add-on covers any engine damage caused due to water-logging, oil leakage or other related concerns.
Return to invoice cover: This add-on ensures that you get the full invoice value of your bike in case of total loss or theft.
No-claim bonus protection: This add-on ensures that you will not lose your no-claim bonus if you make a claim.
Following are the bike insurance inclusions and exclusions.
What does bike insurance cover and what is not covered?
Bike insurance generally includes the following coverages:
Third-party liability: It covers third-party damages caused due to an accident caused by your bike. This includes bodily injury, death and property damage.
Own damage: It covers damages caused to your bike due to accidents, natural calamities, fire, theft etc.
Personal accident cover: It pays for the medical expenses incurred by the policyholder as a result of bodily injury or death in a motorbike accident.
Bike insurance does not cover the following:
Wear and tear: Routine damage to bike parts is not covered by insurance.
Mechanical or electrical breakdown: Any mechanical or electrical fault due to which the bike breaks down is not covered.
Riding without a valid license: Insurance will not cover any damages or liabilities if you ride your bike without a valid license.
Intoxication: If you are under the influence of alcohol or drugs while driving, your insurance will not cover any damages or liabilities.
Illegal activities: The insurance does not cover any damage caused if the bike is used for unauthorized purposes.
While buying a bike insurance policy, read the policy material thoroughly to understand the coverage and exclusions.
Best bike Insurance Companies in India
|Insurance Company||Coverage Offered||Premium Rates||Claim Settlement Ratio||Add-on Covers|
|ICICI Lombard||Third-party, comprehensive, and standalone own-damage||Competitive||96.87%||Zero depreciation, roadside assistance, and personal accident cover|
|HDFC ERGO||Third-party, comprehensive, and standalone own-damage||Affordable||91.32%||Zero depreciation, roadside assistance, and personal accident cover|
|Bajaj Allianz||Third-party, comprehensive, and standalone own-damage||Competitive||91.23%||Zero depreciation, personal accident cover, and pillion rider cover|
|Bharti AXA||Third-party, comprehensive, and standalone own-damage||Affordable||94.50%||Zero depreciation, roadside assistance, and personal accident cover|
|National Insurance||Third-party and Comprehensive||Affordable||87.14%||Nil|
|Oriental Insurance||Third-party and comprehensive||Affordable||91.53%||Nil|
|Reliance General||Third-party, comprehensive, and standalone own-damage||Competitive||93.71%||Zero depreciation, roadside assistance, and personal accident cover|
|TATA AIG||Third-party, comprehensive, and standalone own-damage||Affordable||93.35%||Zero depreciation, roadside assistance, and personal accident cover|
Here are some general steps to claim bike insurance in case of an accident or damage.
Steps to claim bike insurance in case of an accident or damage
Here are the general steps to follow:
Contact your insurance company: Contact your insurance company as soon as possible after an accident or incident that requires a claim. You can either call the customer care number of the company or submit a claim online through their website.
Provide necessary details: Provide your insurance carrier with all relevant information about the accident or incident. These facts may include the location, time and date of the incident, as well as the identity of any other people involved and any applicable police reports or witness statements.
Submit supporting documents: Your insurance company may request that you submit supporting documents to support your claim. A copy of the police report, photos of the damage to your bike, and any medical bills or receipts related to the incident are all acceptable.
Get your bike assessed: A bike appraisal may be required by your insurance company to determine the extent of damage and the cost of repairs. You can either take your bike to an authorized workshop or an authorized representative can come to your home to inspect it.
Wait for the claim to be processed: Once you have provided all the required documents and your bike has been appraised, your insurance company will process the claim. Given the complexity of the matter, this may take some time.
Receive payment: If your claim is accepted, your insurance provider will either pay you or pay directly for the workshop. In case your bike is declared a total loss, the insurance provider will pay you the current market value of your bike at the time of the incident.
Required documents for claim settlement
The documents required to settle the claim may vary depending on the type of insurance policy and the circumstances of the claim. Nonetheless, the following is a comprehensive list of documents you need to submit to your insurance carrier while filing a claim:
- A copy of your insurance policy
- An FIR (First Information Report) or police report, if applicable
- A duly filled claim form, which you can obtain from your insurance company
- Original bills and receipts for the repairs or replacement of your bike
- Proof of ownership, such as registration certificate, bike invoice, or sale deed
- Identity proof, such as a PAN card or an Aadhaar card
- Any other relevant documents, such as medical bills or reports, if you were injured in the accident
To avoid delay in the claim settlement process, ensure that your insurance provider has all the relevant documents. Additionally, retain copies of all documents submitted to the insurance company for your records.
Steps to renew bike insurance online
Online bike insurance renewal is a simple method. The general process is as follows:
Choose your insurance provider: Review the insurance policies offered by various insurance providers and choose the one that best meets your needs.
Visit the insurer’s website: Visit the bike insurance renewal page on the website of the insurance company.
Enter your policy details: Provide your current policy number along with other information like registration number, make and model of your bike.
Review your policy details: Check specific policies to confirm that all information is correct.
Choose your policy options: Choose the insurance options you want to include in your policy, such as add-ons or deductibles.
Make payment: Choose an acceptable mode of payment, such as credit card, debit card or net banking, to pay the premium. You can also pay through digital wallets or UPI.
Download the policy: You can get the new policy paperwork from the insurance provider’s website once your payment has been finalised.
Print the policy: If necessary, print a hard copy of the policy paper for your own keeping.
To avoid coverage gaps, it is important to renew your bike insurance policy before it expires. Renewing your insurance online is a simple and quick process that can be completed in a matter of minutes.
The renewal process for an expired policy
If your bike insurance coverage has expired, you will need to renew it in a slightly different way. The general process is as follows:
Contact your insurance company: Notify your insurance company via phone or online that your policy has expired and you wish to renew it.
Provide necessary details: Provide your insurance company with all relevant information about your bike, such as its make, model and registration number. In addition, if you have prior policy specifications, please send them.
Get your bike inspected: To establish the condition of your bike, your insurance company may require the bike to be inspected. You can either take your bike to an authorized workshop or an authorized representative can come to your home to inspect it.
Choose your policy options: Choose the insurance options like add-ons or deductibles that you want to buy with your policy.
Make payment: Choose an acceptable payment method, such as a credit card, debit card or net banking, to pay the premium. You can also pay through digital wallets or UPI.
Download the policy: You can obtain the new policy paperwork from the insurance provider’s website after your payment is finalised.
If your policy has expired for an extended period, your insurance company may request additional inspections and documents before renewing it. Also, if you renew your policy after its term has expired, you may have to pay higher premiums.
Factors to consider when comparing bike insurance plans
Here are some important variables to consider while comparing bike insurance policies:
Coverage: One of the most important variables to examine is the policy’s coverage. Check whether the policy protects you against damages caused to your bike in case of an accident, theft or other unforeseen situations. Consider insurance that offers add-on coverage options such as personal accident coverage, pillion rider coverage, and more.
Premiums: Premium is the amount that you pay for the policy. Compare premiums for comparable coverage from different insurers. Consider any discounts or perks the insurance company may offer.
Claim settlement ratio: The claim settlement ratio is the percentage of claims that an insurer settles in a given year. To ensure a smooth and fast claim settlement process, choose an insurer with a high claim settlement ratio.
Network garages: Check with the network garages of the insurer to see if you can get cashless repairs. This can be a useful option in the event of a breakdown or accident.
Add-ons: Discover policies that include extras like 0% depreciation, roadside assistance and more. These add-ons can provide additional protection and security.
Customer support: Check that the insurance provider has a dependable and prompt customer service team to assist you with any questions or difficulties.
Exclusions: Read the policy document carefully to understand the policy’s exclusions and limitations, such as the maximum amount of coverage and any deductibles you may be forced to pay.
Keeping these aspects in mind, you can choose a bike insurance policy that offers adequate coverage at a reasonable cost.
Knowing these things will help you calculate the premium while selecting bike insurance for you, which is as follows.
The formula for calculating bike insurance premium
The premium for a bike insurance policy is determined by many criteria, which include:
IDV (Insured Declared Value): This is the maximum amount that your insurer will pay if your bike is completely stolen or stolen. The premium is in proportion to the IDV. The higher the IDV, the higher will be the premium.
Bike’s age: The age of the bike also affects the price. In general, a new bike costs more than an old one.
Cubic capacity of the bike: The engine cubic capacity (cc) of the motorcycle is also taken into account while calculating the premium. Higher cc bikes often command a higher premium.
Geographical location: The premium is also affected by the place of your residence. The premium will be higher if you live in an area prone to damages due to accidents, theft, or natural calamities.
The formula for calculating the premium of a bike insurance policy
Premium = Own Damage Premium + Third-Party Liability Premium + Add-ons (if any) – Discounts (if any)
The Own Damage Premium is calculated as per the below formula:
Own Damage Premium = (IDV x Age Depreciation factor) + (Add-ons – Discounts)
The Insurance Regulatory and Development Authority of India (IRDAI) sets the third-party liability premium, which is calculated based on the cubic capacity of the bike.
It is important to note that the actual formula and method of calculation may differ between insurance providers.
Here are some tips to save money on bike insurance.
Some tips to save money on bike insurance
- Compare quotes from different insurers, to find out the most affordable policy.
- To lower your premiums, choose a higher optional deductible amount.
- To potentially reduce your insurance costs, install safety and security features, such as an anti-theft device or GPS tracker, on your bike.
- Keep a clean driving record and avoid filing minor claims to earn a no-claim bonus that can lower your rate.
- Consider purchasing a long-term policy, which may be less expensive than renewing your policy annually.
- Avoid adding unnecessary add-ons to your coverage as they can increase your premium.
- Get a discount if you belong to an automobile association, have multiple policies with the same insurer, or renew your policy before it expires.
- If you have an older bike, a limited coverage policy will be less expensive than a full policy.
- Finally, it is important to thoroughly study the policy documents to ensure that you are getting the coverage you need that you can afford.
Bike insurance is an important investment for bike owners as it protects them against financial loss due to accidents, theft, or damages caused to their bike. Knowing the different types of coverage offered as well as the factors that determine the premium can help you make an informed decision while selecting a policy.
It is important to examine your insurance needs and compare the policies of multiple insurers to find the one that offers the most value for your money. Still, taking action to lower your premiums, such as installing safety equipment on your bike, maintaining a good driving record, and choosing a higher deductible amount, can help you save money.
Ultimately, bike insurance provides financial and mental security, making it a smart buy for any bike owner.
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