Are There Any Add-Ons Possible With A Third-Party Bike Insurance Plan?

Third-Party Bike Insurance

 


Just like toppings on a pizza that comes at an additional cost enhance the taste, add-ons on an insurance policy enhance the coverage but cost slightly more. The industry offers quite a few add-ons with your bike insurance policy as well. However, you need to know them all to be able to choose what suits your requirements the best!

Types of bike insurance plans in India

All bikes registered in India are mandated to hold at least a standard third–party insurance plan under the Motor Vehicles Act, 1988. Third-party insurance is the most basic form of coverage and hence is quite economical. Third-party bike insurance will cover only the liabilities or claims by the counterparty (third-party), property or vehicle in the unfortunate event of an accident.

Know more about Third-Party Bike Insurance.

On the other hand, comprehensive coverage will offer complete coverage, protecting you from a potential financial stress/burden arising from any unfortunate accident. It covers third-party legal liabilities and your own damage to your bike. Also, a comprehensive bike insurance plan can be enhanced with add-ons which can help you achieve the desired coverage for your vehicle and/or any other potential damage.

Know more about Comprehensive Bike Insurance Plans.

Thus, add-ons are benefits available to a comprehensive plan to enhance your coverage, which is not available to a third party only bike insurance plans!

Reasons to opt for add-on coverage:

The following benefits are extended by opting for add-on covers:

  • Coverage for fiscal liabilities on the loss of a two-wheeler due to theft
  • Death benefit and disability benefit for both rider and pillion due to an accident
  • Coverage for 24*7 roadside assistance in case you are stranded in the middle of nowhere
  • Coverage for depreciation of the vehicle
  • No claim bonus benefits 
  • Claims against most types of damages in the event of accident, theft etc.,

Clearly, a complete hedge against any possible untoward event is sought by availing of add-on coverage. This potentially avoids financial stress where one may have to make any out-of-pocket expenses.

Can third-party bike insurance plans have add-ons?

Third-party bike insurance plans are basic plans which give you the licence to ride your bike on the Indian roads so that in case you meet with an accident, your legal liabilities are taken care of by the insurance policy.

But, add-ons are not allowed on a Third-Party only Bike Insurance plan except for Personal Accident cover.

Additional Options in a third-party two-wheeler insurance plan:

The only options available in a third-party only bike insurance plan are:

  1. Long-term plans:

    For 2 or 3 years instead of 1 year, so that you do not have the hassle of renewing your bike insurance plan every year!

  2. Personal Accident plans:

    The government has mandated a minimum of Rs 15 lakhs of personal accident coverage for every individual who rides a bike in India. Under this cover, if you meet with a bike accident, you or your family would receive compensation for accidental death, disability or dismemberment from the MACT (Motor Accident Claim Tribunal).

    However, the personal accident cover is person-specific and not vehicle specific. This means, if you already have a personal accidental plan, either standalone or with any other vehicle, you need not purchase it with your third-party bike insurance plan.

    However, for Personal Accidental Add-on cover for your bike, you can receive the following benefits:

    1. In the case of Accidental Death, 100% of the compensation would be payable,
    2. In the case of Permanent Disability, 100% of the compensation would be payable,
    3. In case of any Partial Disability such as loss of one limb or one eye, only 50% of the compensation would be payable,
    4. In case of any Partial Disability such as loss of two limbs or two eyes or one limb and one eye, 100% of the compensation would be payable.

    Exclusions of Personal Accidental Add-on cover for your bike:

    Claim would not be payable for personal accidents under the following circumstances, such as:

    1. Driving under the influence of alcohol or any other intoxicating substances
    2. The deliberate action of breaking the law
    3. Not following the basic legal protocols or riding a bike such as not wearing a helmet, etc.
    4. Accident outside the specified geographical area of the coverage of the insurance plan.

List of add-on covers that one can avail of with Comprehensive Bike Insurance Plans:

However, if you opt for a comprehensive bike insurance plan, you can avail of a number of add-ons to enhance your bike insurance policy such as:

  1. Key loss coverage

    It is not uncommon to lose your two-wheeler key, despite having a spare key, there are times when all of them are lost. This add-on covers the cost of purchasing a new key.

  2. Roadside assistance cover

    If you have a vehicle, you may have experienced the anxiety of being stranded in the middle of nowhere. Often without any assistance around such a place, today bike insurance plans have realised the importance of offering coverage for this aspect. Round-the-clock roadside assistance is extended under this add-on, thereby relieving the stress of the rider from being stranded in a place where immediate assistance is not available.

    So, if you need coverage for your off-roading adventure or biking expeditions, you might find this add-on handy!

  3. Passenger assistance cover

    This add-on offers death and disability coverage for riders and pillions. This is a relatively expensive add-on, for typically the quantum of money insured is higher than the other items. Thus, this is important only if you have pillion riders.

  4. Daily allowance cover

    In the event, your two-wheeler is lost or severely damaged rendering you to look for alternate transportation means, this add-on comes into play. There is a daily allowance offered to cater to your transportation expenses.<.p>

  5. Zero-depreciation cover

    The repairs or replacements are covered by the insurer under this add-on benefit. This add-on will ensure that entire expenses towards repair and replacement can be claimed without the deduction of any natural depreciation on your vehicle’s parts.

    This is one of the most important and widely used add-ons so that you get the full value of your claim without depreciation on the parts.

  6. Return to invoice cover

    In the event, the bike is completely damaged without any option of being salvaged, the invoice price will be paid. The invoice price is typically higher than the IDV which is adjusted for depreciation. With this coverage, you will be able to avail a new bike, thus carrying on with your life without any disruptions. If you often park your bike on the road, you might want to opt for this add-on!

  7. Engine protection cover

    There are many regions which have seasonal waterlogging issues, there may be instances of oil leakage which lead to damage to the engine. This calls for an engine replacement. Under this add-on, any engine repair or replacement will be covered.

    If you happen to stay in an area prone to very heavy rainfall with waterlogging issues or flood-prone areas, you might want to add this.

  8. Consumable cover

    Two-wheeler is subject to periodic overhaul, often there are costs incurred towards change in the oil filter, engine oil, nuts and bolts. These consumables are not covered under any of the two-wheeler insurance plans. By availing of this additional cover, one can overhaul the bike as needed without any out-of-pocket expense.

  9. NCB protection cover

    No claim bonus (NCB) is extended as a sizable discount on the premiums applicable for the renewal of the policy. Often, under the regular/basic plan, even if there is a single instance of claim against your insurance plan, you will be disqualified from availing of the no-claim bonus.

    The NCB protection cover ensures that you are not disqualified from NCB benefits despite making claims during the year. 

Ideally, you should opt for a Comprehensive Bike Insurance Plan which also protects against damages on your own bike. With the increasing costs associated with bike overhaul and frequent instances of accidents, there is a need for Bike Insurance with such add-on coverages, which will ensure that you have comprehensive coverage.

However, if you still choose to opt for a Third-Party Only Bike Insurance Plan, you can add personal accidental coverage to enhance the benefits and be legally safe.

DISCLAIMER
This article is issued in the general public interest and is for educational purposes only. The blogs should not be used as a substitute for competent expert advice from a licensed professional to best suit your needs.