Riding a two-wheeler or any vehicle gives a lot of freedom and makes you self-dependent as you need not be dependent on public transport. However, two wheelers are much preferred as they have the additional advantages of convenient parking and easy maneuverability. Apart from all this, owning a bike does not just mean that you will be riding the bike all over, but it is also about being a responsible driver. Besides following the road rules and having the proper documentation, you need to have proper bike insurance. In this blog, you will get to know about insurance policies for bikes and related information in detail.
What is Bike Insurance and Why it is Important?
When you leave your home and ride your bike on the roads then you are exposed to certain risks like collisions and accidents etc. These unfortunate events may happen because of negligence or inexperience. However, in either case, total, or partial damage to the bike and injury or even loss of life of a driver can occur. To escape such situations, an insurance policy for bikes is mandatory.
The policy is a usual contract between the insurance company and the person holding the policy or policy holder wherein the former offers insurance coverage in return for the regular premiums paid by the latter. Moreover, the nature of the coverage offered under bike insurance largely depends on the type of bike insurance the policy holder chooses as there are different types of bike insurance that one can choose as per their requirement.
What Are the Types of Bike Insurance Available in India?
Primarily there are three types of bike insurance plans in India that two-wheeler owners can opt for.
- Third-Party Liability
- Standalone Own Damage (OD) Bike Insurance
- Comprehensive Bike Insurance
As per the Motor Vehicles Act in India, a bike should be insured for any liability that might arise due to any loss or damage suffered by third parties in an accident caused by the insured bike. This type of insurance is called third-party bike insurance. In this type of bike insurance, if the insured bike stands responsible for causing an accident, then any damage caused to the third-party vehicle and injury, or loss of life is reimbursed.
Benefits of Third-Party Liability
- This insurance policy for bike covers the loss suffered by third parties due to the accident caused by the insured bike.
- This bike insurance is mandatory for riding as per the Indian Motor Vehicles Act.
- Premium rates for this insurance are fixed annually by the IRDAI
- In this type of bike insurance IDV of the vehicle is not a relevant attribute to determine the sum assured
- Standard premium rates
- Add-ons not available
- The motor accident tribunal finalizes the amount payable under the claim in this insurance policy for bike
- Standard premium rates
- Damage to the insured bike due to theft, natural calamities, and riot is not covered
Standalone Own Damage Bike Insurance
This type of bike insurance policy covers damages caused to the insured two-wheeler. It covers damages caused by man-made and natural calamities, total damage to the bike, and theft. However, this policy does not cover any 3rd party liabilities. As a result, this policy can only be bought with a mandatory 3rd party liability cover.
Benefits of Standalone Own Damage
-This bike insurance is also called first party coverage. It reimburses the damage to the insured bike and offers personal accident cover of Rs.15 lakhs to the owner-driver of the bike.
- This insurance is optional
- Premium rates are fixed by the insurer for this type of bike insurance
- In this type of bike insurance IDV of the vehicle is a relevant attribute to determine the sum assured
- Slightly higher premium cost
- Add-ons not available
- In this type of insurance, the insurer finalizes the amount payable under the claim based on the surveyor’s report
- This type of insurance covered the damage to the insured bike due to theft, riot and natural calamities etc.
Comprehensive Bike Insurance
This type of insurance offers 360 degrees of protection not just to your bike but to you as well against any third-party liabilities. It is one of the best types of bike insurance as it covers damage cover for the insured bike, coverage against any legal and financial third-party liabilities, and personal accident cover for the owner-driver. Moreover, you might also get targeted coverage against some of the specific circumstances by including certain add-ons with your policy. Some of the add-ones that you can choose with your policy include zero depreciation cover, roadside assistance, etc.
Benefits of Comprehensive Coverage
- This bike insurance covers the damage to both third parties and the insured bike
- It is optional
- Premium rates in this type of insurance are composed of IRDAI specified rates plus insurer specified rates
- In this insurance IDV of the vehicle is a relevant attribute to determine the own damage coverage part of the policy
- Optimal cost for the coverage assured
- Add-ons are not available
- In this type of bike insurance, the insurer finalizes the amount payable under the claim based on the surveyor’s report for the own damage claim. Moreover, the third parties get the reimbursement under the Tribunal’s final award
- Damages covered include any damage to the insured bike due to theft, riot, or natural calamities etc.
How Can You Purchase Bike Insurance?
The easiest method is to purchase bike insurance online for a two-wheeler. This process will help you skip the unwanted delay and completes the process in a safe and transparent way. You can choose the best bike insurance cover from Droom and save up to 75% on the premium amount and enjoy the hassle-free process with zero paperwork. Moreover, you can buy used bike insurance too if you are thinking to buy a pre-owned bike. For complete information visit our website and get a fair idea about the estimated bike insurance price.