What is a Standalone Own Damage Bike Insurance Plan?
OD insurance for bike insurance is a relatively recent innovation that was introduced in September 2019 by IRDAI. In case your bike suffers a loss due to an accident or a calamity, theft, fire, etc., this policy will help you cover the cost of repairing it.
People who already have a comprehensive bike insurance policy do not need this one because their policy already offers the same features. However, people who have only third-party insurance, as mandated by the government, will benefit a lot from this one.
Who can buy a standalone own damage bike insurance?
There are different types of bike insurance and one of the most popular among them is the Own Damage bike insurance. A standalone bike insurance plan, as the name suggests, helps in covering the damages incurred by the insured bike. It does not include third-party coverage like the comprehensive bike insurance plan.
However, you need to keep in mind that only when you have valid third-party liability insurance, would you be able to purchase a standalone bike insurance plan, as third-party insurance is mandatory under Motor Vehicle Act, 1988. A standalone bike insurance plan is also known as OD insurance for bikes provides a safety shield to the bikes insured.
How is a standalone own damage bike insurance plan different?
To understand the uniqueness of a Standalone Own Damage Bike Insurance Plan, we need to understand the difference between a Standalone Own Damage Bike Insurance Plan, Third-party Bike Insurance Plan and a Comprehensive Bike Insurance Plan:
|
Third Party Only Bike Insurance Plan |
Standalone Own-Damage Bike Insurance Plan |
Comprehensive Bike Insurance Plan |
Legal Standing |
Mandatory by the Government of India |
Not Mandatory |
Not Mandatory |
Eligibility |
All bikes in India are eligible |
Only bikes with a valid third-party-only bike insurance plan can apply for a Standalone Own-Damage Bike Insurance Plan |
All bikes in India are eligible |
Coverage |
Third-party legal liability coverage |
Own damage of the bike |
Third-party legal liability coverage + own damage of the bike |
Exclusions |
Own damage of the bike |
Third-party legal liability coverage + regular exclusions such as unauthorised, illegal or drunken driving (mentioned below) |
Regular exclusions such as unauthorised, illegal or drunken driving |
Add-ons |
Not available |
Available |
Available |
Cashless claim facility |
Not applicable |
Applicable |
Applicable |
Features and benefits of standalone own damage bike insurance plan:
The own damage bike insurance offers some striking benefits. Here is a list of all the benefits that you get to enjoy if you purchase the popular standalone bike insurance plan. These are:
Although the premium of the own damage insurance two-wheeler is a bit higher as compared to third-party insurance, the benefits provided help you cover almost all kinds of damages. It helps you have a back at the time of the need.
Inclusions under a standalone own damage bike insurance plan:
When you are planning to purchase your own-damage bike insurance plan, you must pay special attention to what all gets covered under this policy. If you already have a clear thought over what you expect from a bike insurance policy, this section will help you finalise whether or not this is going to be a smart and worthy choice for you. Let’s have a look at the inclusions under a Standalone OD policy:
Exclusions under a standalone own damage bike insurance plan:
Insurance companies try to offer as many benefits as possible under each policy. However, it is not possible for any insurance plan to cover everything. Some of the corners are excluded under standalone bike insurance as well. These are
Factors affecting the standalone own damage bike insurance plan premium:
The premium amount that you pay instead of the coverage offered by the bike insurance company must be understood properly. You must know what are the factors that can affect the premium of the Standalone Own Damage Bike Insurance. It helps you get a better understanding and you can also find ways to reduce it. Let’s know what all affects the premium:
How to calculate the premium for a standalone own damage bike insurance plan?
When you plan to purchase your own damaged bike insurance, it is essential that you also calculate the premium that you will have to pay instead of the services offered by the insurance company. As discussed above, the bike’s age, its cubic capacity, IDV, and the add-ons are majorly taken into account to calculate the premium of your OD bike insurance. It can become cumbersome to calculate the premium otherwise.
With the help of the premium calculator available here atTurtlemint, you can easily calculate your bike’s insurance premium. Here’s how you can do it:
How to reduce the premium for a standalone own damage bike insurance plan?
Looking for ways to reduce your bike’s damage insurance premium is not only economical but also a smart move. You must know the simple tips and tricks that can help you keep your premium amount to the lowest possible bar. Here’s how you can do so:
Voluntary deductible is the amount of claim that you wish to pay when a claim is filed. The higher your voluntary deductible is, the less premium you will have to pay. The lesser your deductibles will be, the more the insurance company will bear the claim amount and thus the higher your premium will be.
There are a lot of add-on options available with OD bike insurance. You may find some of them very attractive. But the smartness lies in the wise decision. Before you purchase an add-on, take a step back and analyse if or not you need any particular add on. If you don’t, do not purchase it, because the more the add-ons, the higher will be your premium.
Try to refrain from making unnecessary claims. If you keep on making claims for smaller amounts, the premium goes higher. So, make a claim only when it’s a big deal. This way, you also may be able to claim NCB.
Mostly a standalone own damage insurance policy has the life of one year. So, before your policy is about to expire, make sure you renew it. If you renew it on time, you may get to enjoy discounts and other offers that can help you reduce the premium. It may not be available if you renew your policy later than the date of policy expiry.
No claim bonus is accumulated if you do not claim in a policy year. So, if you make no claims in the past policy year, you can use it to reduce your premium when it comes to renewing your OD bike insurance.
Steps to file a claim for a standalone own damage bike insurance plan:
Filing a claim is the most important process to understand when you are purchasing any insurance policy. Because the ultimate aim is to get financial assistance in times of need, you must know what’s the right way to do so to avoid any rush at the eleventh hour.
Let’s understand how to file OD bike insurance claim:
If you wish to file a reimbursement claim, then you need to get the inspection done by the surveyor appointed by the insurer before you get your bike repaired.
The documents include
Add-Ons for a standalone own damage bike insurance plan:
Add-ons, as the name suggests, are the extra coverage that you can add to your bike insurance to make it more effective. It helps you enjoy more benefits by paying some premium.
Here is a list of the most common add-ons that you can purchase along with the standalone bike insurance policy:
List of companies that offer a standalone own damage bike insurance plan:
There are several companies that offer standalone damage for your two-wheeler. You can explore these companies, compare and purchase from your desired company.
Turtlemint provides detailed information about policies offered from various companies so you can have a complete idea and make the right choice:
Conclusion:
OD bike insurance policy helps provide coverage for the damages incurred in your bike due to any mishap. Make sure you know all the details of the plan before making the purchase. It is also essential to know the steps of filing the claim so you can easily do so when needed. Find out the most beneficial insurance company for you and make the purchase.
Yes, you can purchase a standalone cover and third-party from two different companies. You are not bound to purchase them from one place.
No Claim Bonus (NCB) is only taken into consideration if you renew your policy within 90 days. After that, the benefits of NCB expire.
Older bikes have lower premiums but it is always smart to assess the requirements of your bike. As a comprehensive bike insurance policy has wider coverage, it may be more beneficial for people who are driving frequently or every day. If you rarely take out your bike and it is old enough, you may want to decide and opt for a standalone cover.
This is because comprehensive bike insurance provides a wide range of coverage. From offering third-party liability to own damage cover, it offers them all under one policy. This is the reason why it becomes costlier than other bike insurance plans.