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|
|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:
- OD insurance for bikes covers the expenses incurred in repairing a damaged bike due to an accident, fire, theft, or natural or man-made calamities.
- The feature of add-on rider is provided for the insured bikes.
- Unlike earlier, with the introduction of own damage bike insurance, now one can purchase third-party and own damage policies from two different insurance companies
- This policy could be bought for one/ two/ three years and then renewed accordingly
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:
Riding a two-wheeler comes with a huge responsibility. You need to ride it safely. However, you may sometimes damage your bike and it can cost you heavily. In such a situation, the damages incurred on your bike due to an accident are covered by the insurance company if you have OD bike insurance.
Man-made disasters like riots, explosions, violent explosions, and natural calamities such as earthquakes, floods, etc can cause damage to the property nearby including your bike. If you have a standalone bike insurance policy, the insurance company will bear the cost to repair it.
In case your bike is damaged due to catching fire, the insurance company will help you clear out the bills to repair it.
If your bike gets stolen and you have OD bike insurance, the insurance company will cover your back. It is essential to note that IDV plays a vital role in deciding your claim amount.
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
- Third-Party Liability:
As the name suggests, own damage bike insurance covers the cost of repairing the insured bike only. Assistance in the case of third-party liability will be settled by the respective company.
- Drunken Riding:
In case the rider is found to be under the influence of any kind of intoxication
- Intentional Damages:
In case the insured bike suffers any consequential damage, it will not be covered under the policy. It means if the driver takes out the bike knowing it will cause damage to the bike or its part, in such a situation, the insurance company will not be liable to cover the cost of damage.
- Unauthorised Driving:
Without a valid driver’s license, making a claim wouldn’t be possible
- Illegal Usage:
If the damage to the bike is caused while using it for some illegal and malicious activities.
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:
The Insured Declared Value, the market value of your bike impacts the premium amount for your bike’s insurance. Hence, IDV is an important factor of consideration.
- Cubic Capacity:
The Cubic Capacity of your bike decides how far your bike’s speed can go. The higher the CC the higher the speed your bike can go, putting your life at risk while driving. Hence, as the CC of your bike goes high, the premium amount of standalone own damage bike insurance will go high.
The age of your bike is a major concern for every insurance company when deciding the premium for OD bike insurance. If your bike is new, the premium will be higher. As the bike becomes older, the premium to be paid decreases. This is primarily because, with age, the market value of the bike decreases.
- No Claim Bonus:
NCB or no claim bonus is a great benefit. If in your earlier comprehensive bike insurance plan, you made no claims and now you are purchasing the standalone own damage bike insurance plan, the NCB will be transferred in this plan and you will have a discount on the premium.
- Make and Model of Bike:
The model of the bike and its making date is directly related to the premium amount. If the model is too high and the making date is also recent, the premium will go high and vice-versa.
Add-ons are added to enhance the effectiveness and coverage of an insurance policy. However, along with wider coverage, it also brings increased premium amounts. So, the more add-ons you have, the higher the premium will be.
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:
- On the home page, click on the “Bike” on the top bar
- Select “Bike Insurance Calculator” under “Types of Bike Insurance”
- The screen will take you to the bike insurance calculator
- Here, by mentioning a few details, you can easily calculate your OD bike insurance premium
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:
- Increased Deductibles:
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.
- Required Add-Ons:
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.
- No Unnecessary Claims:
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.
- Renewal On-Time:
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:
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:
- Inform the insurance company
When a mishap happens and your bike suffers damage, the basic rule is to inform your insurance provider as early as possible so they can proceed with the formalities. The company would then send a surveyor to inspect the loss.
If your bike has been stolen or there has been an accident where a third party is harmed, you also need to file an FIR at a nearby police station. The police will visit and survey the accidental or robbery spot.
- Selection of network garage
In order to get a cashless claim, you need to visit a network garage. Else, you can pay from your pocket and then file a reimbursement 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.
Along with the Claim Form, there are a few documents that you will have to submit to the surveyor or the office of the respective insurance company. Documents are required for verification. You must provide all the documents as stated so that process can be initiated immediately.
The documents include
- FIR (if made)
- Policy documents
- Driver’s License
- Copy of RC
- Original bills and your bank account details in order to file a reimbursement claim
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:
- Return to Invoice
This is one of the most beneficial add-on coverage in case your bike gets stolen or gets involved in a major accident. It helps you get the total invoice price of your bike if it gets stolen or for total loss. This is highly recommended for people who live in an area with a high risk of robbery.
- Zero Depreciation Cover
At the time of disbursing the claim amount, the depreciation cost of the particular bike part and the bike is deducted from the total claim amount. To keep your bike safe from this loss due to depreciation cost, you can purchase zero depreciation cover. If you have this add-on, the insurance company will not deduct the depreciation cost.
- Consumables Cover
There are several consumables that your two-wheeler needs to run like oil, grease, screw, bolt, etc. which are not covered under basic policies. To save on the cost incurred in these products, you can purchase this add-on cover.
- Roadside Assistance
When your bike suffers an unforeseen problem in the middle of the road like an accident or mechanical failure, all you need is immediate assistance. You can avail of roadside assistance which would be available 24*7. You just need to call your insurance company and immediate help will be sent anytime any day.
- Engine & Gear-box Protection Cover
This add-on is effective if you live in a flood-prone zone and if your bike is damaged because of water, then it is not covered under a regular policy unless the engine and gear-box protection cover has been availed. The engine is the most expensive part of the bike and it could get damaged due to oil leakage, flood, water-logging, etc.
- Key Protection Cover:
If the bike’s key is lost or stolen, then you can claim for the replacement of the lock along with a new set of keys under the key protection cover.
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:
- IFFCO Tokio General Insurance Company Limited
- Bajaj Allianz General Insurance Company Limited
- National Insurance Company Limited
- The New India Assurance Company Limited
- The Oriental Insurance Company Limited
- United India Insurance Company Limited
- Universal Sompo General Insurance Company Limited
- HDFC Ergo General Insurance Company Limited
- TATA AIG General Insurance Company Limited
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.