Types of Bike Insurance Policies

What is Bike Insurance & Why Do You Need It?

A bike insurance provides financial and legal protection to a two wheeler such as bikes, moped, scooty, EV, etc, against several unforeseen circumstances. There are 3 main types of bike insurance policies depending on their coverage.

Apart from being a legal mandate, a comprehensive bike insurance policy offers the required insurance coverage against third-party liabilities and own damages. You must buy a bike insurance policy as it will reduce your financial burden, provide legal protection and also cover losses to both 3rd party and your bike (in case of OD and Comprehensive Plans)

What are the Different Types of Bike Insurance Policies?

There are three types of 2-wheeler insurance policies available in India. You can either buy a third-party, comprehensive or a standalone own-damage bike insurance policy.

1. Third-Party Bike Insurance Policy

   In India, having a third-party bike insurance is mandatory for two-wheeler owners. This policy takes care of the losses caused to the third party, property, or life in case of an accident. This type of bike insurance does not cover loss or damage caused to your own vehicle. It is a liability cover policy for 3rd party damages and losses.

2. Comprehensive Bike Insurance Policy

   A comprehensive bike insurance policy covers both the own damages and third-party liabilities. A comprehensive type of bike insurance gives protection against burglary or theft and damage caused by accidents, natural calamities, and manmade disasters. Moreover, under this plan, you can also purchase add-on covers for specific circumstances by paying a little extra premium.

3. Standalone Own-damage Bike Insurance Policy

   As the name suggests, the Own-damage (OD) bike insurance policy gives coverage to your own vehicle caused due to natural calamities, manmade disasters, accidents, fire, and theft. This policy can only be purchased if you just have the mandatory third-party bike insurance policy.

Difference between Bike Insurance Policies

The table below highlights the key differences between types of bike insurance policies. You can compare and buy out of various third party, own-damage cover, and comprehensive bike insurance policy.

What is Covered Under Two-Wheeler Insurance Policy?

The type of bike insurance you choose will determine what it covers and what it does not. You must choose the right bike insurance policy depending upon your requirements. You can check the full list of inclusions and exclusions below to make a better decision.

Inclusions

• The following is covered in all types of bike insurance policies:
• Damages due to natural calamities like floods, landslides, earthquakes, etc.
• Damages from manmade disasters like fire, strikes, terrorism, riots, vandalism, etc.
• Losses are covered if the insured bike is stolen or is a total loss
• Coverage for third-party liabilities such as death, disability, or property damage
• Damages are covered in case of an accident, housebreaking or fire explosion.

Exclusions

A list of exclusions where you won't receive any compensation under your comprehensive bike insurance policy is given below.

• Damages caused due to electrical or mechanical breakdown
• Damages occurring when the rider was under the influence of any intoxicating substances or alcohol
• Damages that happen when the rider was not holding any of the valid documents such as DL, RC, PUC certificate, and a valid bike insurance policy
• Loss arising out of the contractual liabilities
• Damages caused due to regular wear and tear.

Factors Affecting Bike Insurance Premium

Each type of bike insurance policy has a different premium. The following factors affect the bike insurance policy premium.

1. Insured's Declared Value (IDV)

   IDV is the maximum amount the insurer will pay during the claim settlement.

   Calculation of IDV

   IDV = Manufacturer's listed selling price - Depreciation

   It is calculated based on the manufacturer's listed selling price of the brand & model and then adjusted as per the standard depreciation rates.

   The table given below will give you a better understanding of the correlation between depreciation value and IDV calculation:

   

2. Bike Engine's Capacity (CC)

   With the increase in the CC of two-wheelers, there would be a rise in the premium. The IRDA has specified third-party premium rates based on the cubic capacity of the bike's engine. Below is a table showing the premium rates for various cubic capacities:

   Engine Capacity in CC	Third-party Bike Insurance Premium Annual Rates (in ₹)
   For less than 75CC	538
   In between 75CC - 150CC	714
   In between 150CC - 350CC	1366
   For more than 350CC	2804

3. Geographical Location

   According to the India Motor Tariff, the country is divided into Zone A and Zone B. Zone A includes cities like Bangalore, Chennai, Ahmedabad, New Delhi, Mumbai, and Kolkata. At the same time, Zone B covers the rest of the country. The premium rates are higher in cities under Zone A than in Zone B.

   

4. Vehicle Age

   Premium rates increase with the age of the vehicle. Simply put, the older your car gets, the higher the premium you pay to maintain it as the value of its parts gets depreciated.

How to Buy Two-Wheeler Insurance Policy Online?

Buying a 2-wheeler insurance online from Policybazaar.com is quite simple and hassle-free. By following the below steps, you can buy bike insurance online:

• Visit the official website of Policybazaar Insurance Brokers Private Limited
• Enter your bike details and personal information asked in the two-wheeler insurance section
• Compare and select the plan offered by bike insurance companies of India
• Select any add-on cover (if required)
• At last, pay the premium through UPI, banking cards, or net banking.

How to File Bike Insurance Claims?

In case of any mishap, you can raise a claim against the damages caused to the insured bike. To raise a claim, you must contact your insurer through phone or mail and then file a claim within the stipulated time. Your insurer will ask you to fill out the application form along with an FIR (in case of theft) or submit mandatory documents (in case of an accident). After this, the surveyor will examine the damage and send your vehicle for repairs.

Either the insurer will settle the bill with a network garage in case of cashless settlement or reimburse the bill amount directly to your bank account if you have opted for a non-cashless settlement process.