If your bike ever gets damaged, the only thing that can save the day is a valid bike insurance policy.
As more and more people get their hands on their favorite bikes, the number of two-wheeler accidents also shoots up. Despite this, many people still drive uninsured vehicles. To curb this rising number, IRDAI (Insurance Regulatory and Development Authority of India) made it mandatory to have a valid insurance policy when you purchase a new bike. This is also mandated by the government according to the Motor Vehicles Act 1988.
The bike insurance policy that one must purchase should include a five-year third-party plan plus one-year own damage cover. In this guide, you’ll learn all about purchasing a bike insurance policy, its types, features, benefits and significance.
Types of Bike Insurance Policy
Before we dive into features and benefits, it is important to understand the types of bike insurance policies. There are three types of bike insurance policies that are listed below.
Third-party Bike Insurance: A third-party bike insurance policy is simply an insurance policy that protects the rider from any third-party damages. This means that the insurance policy will cover all the financial expenses that may have incurred if your bike causes damage to a third party’s property or accidents caused on the road.
Own Damage Bike Insurance: This type of bike insurance policy covers all the damage that may have caused to the policy holder’s bike. Along with a third-party bike insurance, it is important to have an own damage bike insurance policy as well.
Comprehensive Bike Insurance: A comprehensive bike insurance policy includes both, a third-party damage coverage as well as own damage coverage which makes it the best option. This type of policy also secures your bike from many unforeseen circumstances such as fire, theft, and natural calamities.
Features and Benefits of a 5-Year Bike Insurance Policy
Yes, bike insurance policies are mandatory to purchase but it has many features and benefits that makes it the perfect spend for the safety of your bike. Here’s a list of all the features and benefits of bike insurance policies.
Features of a 5-Year Bike Insurance Policy:
No Claim Bonus (NCB): This is perhaps the best feature of having a bike insurance policy. NCB simply means that if you do not claim insurance for a valid policy, you can claim discounts on renewal of the policy for every claim-free year. However, is it important to note that the discount is offered on the own-damage premium renewal.
Transferability: A really convenient feature of bike insurance policies is that if you ever decide to sell your bike, you can also transfer your bike insurance policy to the new owner. To get detailed information on transferring your bike insurance policy, read this guide on Forbes Advisor India.
Cashless Process: Many bike insurance policies include cashless claim processes that saves you from the lengthy process of paying from your pocket and then applying for remuneration.
Benefits of a 5-Year Bike Insurance Policy:
Safety, Protection and Savings: Protecting your bike with a bike insurance policy is just the same as protecting yourself with a helmet while riding. Accidental damage to your bike often comes with a heavy financial expense that only an insurance policy can save you from. This means you’re only saving more by spending on an insurance policy for your two-wheeler.
In addition to this, you can save more by taking annual premium payments or pay at once for the 5-year policy period.
Easy and Convenient: Purchasing a 5-year policy saves you the trouble of renewing your bike insurance policy every year nor having to remember your renewal dates hence allowing you to ride safely without any hassle.
Look Out for Deductibles: There are many features in the insurance policies that can be deducted to lower the premium payments. These are called voluntary deductibles. You can choose to increase your voluntary deductibles but this may also mean that you will have to pay part of the insurance claim from your pocket in case of damages.
Option of Add-ons: With bike insurance policies, just as you can increase deductibles to lower to premium price, you can opt for add-on covers that can give you a wider scope of coverage and benefits. These benefits include personal accident cover, zero depreciation cover, 24×7 roadside assistance cover, engine protection cover, passenger cover, emergency medical expenses cover and more such coverages.
What to Consider Before Purchasing Bike Insurance Policy
Just like you don’t buy the first bike you see, it’s important to consider options before you purchase your bike insurance policy. If you’re wondering what to prioritize to get the best bike insurance policy, here’s a list for you.
Analyze your Requirements: Understanding your bike’s health is highly important before you set out to purchase a bike insurance policy. Assessing your bike’s age, engine capacity, wear and tear conditions, usability and such factors will help you understand what coverage will be the best for your bike.
Factor in your Budget: Paying the premiums for the bike insurance policy could become a monthly or yearly hassle if not planned thoroughly. Usually, insurance policies are cheaper if paid for annually but one may also decide to take the monthly premium route due to personal circumstances.
Assess your Driving Skills: If you think you could be a high-risk driver or frequently drive in accident prone areas such as the highways, purchasing a high coverage policy makes more sense. However, if you’re planning to take your bike out for a skin only occasionally, you might as well take a policy which offers a decent coverage making it cost effective.
Research and Compare Policies: Before you finalize on a bike insurance policy, it is important to compare the various options that suit your requirements. You will be able to get the best deal that gives you the coverage you want while saving your tons of money on insurance premium.
Frequently Asked Questions (FAQs)
Is a bike insurance policy of five years compulsory?
Yes, it is important to purchase a 5-year bike insurance policy. The bike insurance policy that you purchase must include a 5-year third-party plan plus 1-year own damage cover.
Can I renew my bike insurance policy?
Yes, you must renew your bike insurance policy once it’s validity has finished. You can choose to renew the same policy and receive an NCB (No Claim Bonus) or choose a new policy that suits your needs.
What if I don’t purchase a bike insurance policy?
Purchasing an insurance policy not only secures your bike from damages but also saves you from incurring heavy expenses. Most importantly, it is illegal to drive a two-wheeler without a valid insurance policy nonadherence to which may result in hefty fines or even imprisonment.
Where can I purchase a bike insurance policy?
While purchasing a bike, you can get insurance policy deals directly from your authorized bike dealer. Apart from this, there are multiple online websites that list thousands of insurance policies from multiple insurance providers. Based on your specific requirements and budget, you can purchase a policy online as well that provides more benefits than purchasing a policy offline.
