Comprehensive bike insurance

Third party bike insurance policies are mandatory by law. They are insurance policies on your bike which cover you against financial liabilities if you harm any third party or damage a third party property. Moreover, comprehensive bike insurance plans also cover damages suffered by your bike.

Two-wheelers are very popular in India. People prefer a two-wheeler because of its convenience and economy. In fact, two-wheeler sale in the Indian market is booming. According to reports, the total two-wheeler sales in April – July 2017 increased by 9.23% against the sales in April-July 2016. During the same period, the scooter market posted a growth of 19.10%.

However, despite the popularity of two-wheelers, safety is ignored by many riders. According to reports published by National Crime Records Bureau, two-wheelers accounted for 29.3% accidental deaths in 2015.). Two-wheeler riders also forsake the compulsory bike insurance plans. In a data compiled by the Ministry of Road Transport and Highways, out of 19 crore vehicles registered in the country, only 8.26 crore vehicles are insured. Is it wise?

Two-wheeler insurance plans are compulsory by law. Yet, many individuals still ignore it as is evident from the figures. The main reason for this ignorance is a lack of knowledge. If you also don’t know about bike insurance plans, here is a detailed guide.

Types of bike insurance plans in India

In India, you get two different types of bike insurance plans. One is the mandatory third party liability policy while the other is a more inclusive comprehensive package policy. Let’s understand these two in brief -

  • Third party liability policy – A third party liability policy covers financial liabilities which you face if your two-wheeler causes injury, disability, or death of a third party or the owner. If you damage any property belonging to a third party, you would also get coverage for the financial compensation you are liable to pay up to Rs. 1 lakh.
  • Comprehensive package policy – As the name suggests, a comprehensive policy provides an all-round coverage for your bike. You get coverage for the mandatory third party liability cover. Moreover, if your bike suffers any damages you get coverage for those.

What does bike insurance cover?

A comprehensive bike insurance plan provides coverage also provided by a third party policy. So, here are the coverage features offered by a comprehensive plan -

  • Any financial liability which occurs when you accidentally injure any individual or an individual is killed/disabled in an accident involving your bike.
  • Financial liability which arises when you damage a property belonging to a third party.
  • Damages sustained by your bike due to natural causes like floods, earthquakes, hurricanes, etc.
  • Damages suffered by your bike due to man-made causes like fire, self-explosion, theft, malicious damages, etc.
  • Damages faced when the bike is being transported by rail, road, water or air.
  • Personal accident cover which is for the driver or owner of the bike in case of accidental injury, death, or disablement.

Long-term two-wheeler insurance

IRDA has made recent changes in the context of bike insurance plans wherein the plans can be offered for longer tenures. In keeping with these changes, there are bike insurance plans which come with policy tenure of up to 3 years. You pay the premium once and you get coverage for 2 or 3 years as you choose. Both third party and comprehensive bike insurance plans are being offered as long-term plans. These long-term policies give you the benefit of lower premiums and cut down on the hassles of annual renewals.

Why is it important?

A comprehensive bike insurance policy is important because -

  • It provides an all-inclusive cover which is not found in third party liability only policies.
  • It provides financial aid even when your bike suffers damages.
  • There are comprehensive add-ons available with the plan which increase the level of coverage.

Add-ons available

As mentioned above, a comprehensive bike insurance policy provides attractive add-ons. Some popular ones are as follows –

  • Roadside assistance cover - this cover gives you 24*7 assistance from the insurance company in case your bike breaks down in the middle of the road and you cannot get assistance from any garage.
  • Zero depreciation cover - when you make a claim for your bike’s repair expenses, the company deducts depreciation of the parts from the value of claim due to which, the claim amount paid by the insurer goes down. With zero depreciation cover you can get the full claim settlement as the effect of depreciation is ignored by the company.
  • NCB protect - if you don’t make a claim in your bike insurance policy, you earn a no claim bonus discount. This discount reduces your renewal premiums and also increases every claim-free year. One instance of claim, however, wipes out the accumulated discount. Through this add-on cover, you can protect your NCB even when you make a claim.
  • Cover for consumables - consumables like oil, grease, nuts and bolts, etc. are used when repairing your bike and are excluded from claim settlement. With this add-on you can include the cost of consumables too.
  • Medical cover - this add-on covers the medical expenses you incur if you are involved in an accident and are taken to a hospital for treatments.

Add-ons increase the scope of coverage and provide you comprehensive benefits. Though they involve an additional premium, the premium outgo is very minimal compared to the benefits provided by the add-ons.

Factors to consider when buying a comprehensive two-wheeler insurance policy

There are multiple comprehensive bike insurance plans available in the market. You should buy a plan only after comparing it with others. Here are the factors which you should consider before buying a comprehensive bike insurance policy –

  • Coverage features - though the coverage in all plans would include third party liabilities and own damage suffered, you can find various additional benefits inbuilt in the policy. So, look at the coverage features provided by the plan and understand them to know exactly for what you are covered.
  • Add-ons available - look at the add-ons which the policy provides and choose them based on your requirements.
  • NCB protect - if you don’t make a claim in your bike insurance policy, you earn a no claim bonus discount. This discount reduces your renewal premiums and also increases every claim-free year. One instance of claim, however, wipes out the accumulated discount. Through this add-on cover, you can protect your NCB even when you make a claim.
  • Insured’s Declared Value (IDV) - this represents the total effective coverage value and is calculated by deducting the age-based depreciation from the market price of the bike. You should choose a plan with the highest IDV to avail increased coverage levels.
  • Premium rate - the premium rate should be checked along with the coverage features. The best plan should provide comprehensive coverage at lowest premium rates.
  • Discounts - you should also check the available discounts which lower your premium outgo.

Why choose Turtlemint for bike insurance?

Turtlemint is an online platform which lists various bike insurance policies under one roof. You can shop for bike insurance online through Turtlemint. Since we are partnered with various insurers you can find different plans on our website along with their bike insurance price list. You can compare these plans before you buy. This comparison would let you buy the best plan at the best premium rate. Furthermore, Turtlemint helps you with the buying process if you are confused. We provide you with personalized one-on-one services at the time you buy the plan and also at the time of claims and renewals.


FAQs

No, add-ons are available only with comprehensive bike insurance plans.


Yes, comprehensive bike insurance plans cover damages faced due to lightning.


Yes, each add-on requires you to pay an additional premium.


You can buy add-ons either when buying a new policy or at the time of renewals.


Yes, the rate of premium depends on the IDV. Higher the IDV higher would be the premium and vice versa