Understanding Bike Insurance: Your Complete Guide

Introduction

It is a windy afternoon, and Ashish is cruising on his bike. Suddenly, he loses control, and his bike crashes into a wall. Now, the bike is heavily damaged, with a broken headlight, a detached mirror, and a spoilt front suspension. Even though Ashish is okay, he is now immediately worried about the repair cost. When he takes the bike to the repair shop, the estimate is ₹15,000. Had he bought a comprehensive bike insurance policy, this cost could’ve been covered, and he would’ve been at peace.

So, what is bike insurance exactly? It’s like a pact between you and the insurer. If there’s a hiccup, be it an accident, theft, or a crash, the contract kicks in to cover the damages. 

This article navigates the world of bike insurance, covering key aspects for confident road navigation.

Why Do You Need Bike Insurance?

In India, it’s a must for every bike owner to have at least a third-party insurance policy under The Motor Vehicles Act, 1988. Breaking this rule could lead to fines and even jail time.

As more bikes join the traffic, accidents are on the rise. With bike insurance, you’re not just following the law but also giving your vehicle the protection it deserves. Your insurance has your back, whether it’s a collision, theft, or accident. Plus, if something goes wrong and you accidentally cause harm or someone else’s unfortunate demise, your comprehensive insurance has you covered there too.

Types Of Bike Insurance Policies

A bike insurance policy covers two-wheelers, including motorcycles, scooters, moped bikes, and electric bikes. There are three main types of bike insurance policies available in India:

• Third-party liability insurance
• Standalone Own-Damage (OD) insurance
• Comprehensive insurance

Here’s a comparison of the features, coverage, and premiums of each type of policy:

Factors Affecting Bike Insurance Premiums

Several factors influence the cost of motorcycle insurance in India. Let’s break it down:

• Engine Capacity: Big engines mean higher costs. The more powerful your bike, the higher your insurance premium will likely bear.
• Vehicle’s Worth: Your bike’s market value impacts the insurance premium. Usually, it’s a small percentage of your bike’s total value.
• Customizations: Adding modifications might make your ride stand out, but it can also increase your insurance cost. Make sure to insure any fancy changes separately to avoid potential losses.
• Geographical Location: If you live in a metropolitan or urban city, the insurance cost may be higher than in smaller towns or rural areas. That is, the risk depends on the place where your bike is registered. For example, the traffic density in metros increases the bike risk factors.
• Insured Declared Value: The higher your bike’s Insured Declared Value (IDV) is, the higher your premium will be. As your bike ages, the IDV goes down due to normal wear and tear, which is depreciation.

• NCB: No claim bonus is an incentive to you for responsible and cautious driving. To do so, your insurer rewards you with a certain discount on the next premium if you do not claim in the current policy year. The longer you avoid making any claims, the higher your NCB goes. However, do keep in mind that NCB is capped at 50%. However, this NCB discount is applicable only on the Own-damage premium, not the Third-party premium whose price is fixed by the regulator.
• Add-ons: Basis the add-ons you include while purchasing bike insurance, your premium may vary. Not all add-ons are paid, but most of them come with a price. So, be careful while choosing the add-ons so you do not miss out on the critical add-ons but also do not pay unnecessarily for not-so-important add-ons. 

How To Claim Bike Insurance

To submit a bike insurance claim, follow these general steps:

Cashless claims at your brand/authorised service centre:

• Contact your insurance provider: As soon as possible, report the incident to your insurance provider to initiate the claim process. You may use their customer support for this.
• Find the nearest service centre: Most service centres have prior tie-ups with the insurers. Reach the service centre that is nearest to you.
• Inspection by insurers: The insurer does an inspection to identify which bike components or parts are eligible for insurance.
• Insurer confirmation: Once confirmed by the insurer, your service centre informs you about the total bill and amount you have to pay before initiating the repair process
• Claim settlement: Your insurer pays for the covered damages, and you just pay the balance amount.  

Reimbursement claims at independent garages:

• Get the repair done: Pay for the repairs yourself and keep the bills.
• Contact insurer: Dial up your insurance company or visit their website.
• Fill the Form: Tell them what happened by filling out a simple form.
• Paper Trail: Send in the form with your ID, bike papers, and a report from the police, and the bill from the garage
• Reimbursement: Insurer reviews the papers and if everything’s good and they approve, you’ll get your claim money.

Key Takeaways

In summary, two-wheeler insurance is your trusted companion on the road, keeping you financially secure in unexpected situations. Stay updated aboutwhat is bike insurance, ride safely, and enjoy your journey with the confidence that your bike is well-covered. 

Additionally, consider platforms like PhonePe for a seamless and hassle-free insurance purchase experience.