Two-wheelers have gained popularity over the years. Bikes are no longer restricted to only being used as a means of daily commute. These days, you can purchase a swanky sports bike and go on hiking and adventure trips.
However, you need to buy bike insurance for all types of two-wheelers. Insurance for bikes is a policy that provides coverage against accidents and mishaps caused due to the two-wheeler.
These days, several insurance companies offer a variety of bike insurance plans. Compare bike insurance plans for multiple insurers to choose the plan best suited for your requirements. You can use a bike insurance calculator to compare the premium for various two-wheeler insurance policies.
It is essential to know the basics of bike insurance and choose the best bike insurance plan.
What is Insurance for Two-wheelers
A bike or two-wheeler insurance policy protects you against the financial implications of damages caused by your bike to third parties and the bike owner or driver. It also covers theft and damages to the two-wheeler due to natural calamities and man-made disasters, such as floods, fires, and riots. You can buy bike insurance online or offline at your convenience.
Should You Buy Bike Insurance
Every year, lakhs of road accidental deaths are recorded in India in 2022. Honestly, these numbers are terrifying. However, unlike cars, bikes do not have seatbelts or airbags. Therefore, riding them can be riskier.
A bike insurance policy may not reduce the chances of an accident, but it removes the financial burden of a mishap or injury due to your bike. Moreover, buying bike insurance is mandatory by law in India to take your two-wheeler out on public roads.
Types of Bike Insurance Policies
Leading insurance companies in India, like Tata AIG, offer their customers three types of bike insurance policies. These are:
- Third-party bike insurance policy: It is the most basic type of bike insurance that every bike owner must have to take a bike out on Indian roads. This policy provides coverage if your bike causes damages to a third party or third-party property. However, this policy does not cover damages to your own bike or its theft.
- Comprehensive bike insurance policy: This plan has a broader coverage and provides financial protection against third-party damages, accidental damages to the bike and bike owner or driver, theft of the bike, or damages to the bike due to natural and man-made calamities. Comprehensive bike insurance is full bike insurance.
- Standalone own-damage bike insurance policy: If you already have a third-party bike insurance plan for your two-wheeler, you can opt for an additional standalone own-damage bike insurance plan. This plan does not cover third-party damages but protects against damages to your bike and its theft.
What Does a Bike Insurance Policy Cover
The following are the inclusions and exclusions of a two-wheeler insurance policy:
|Damages due to natural calamities||Damages due to electrical or mechanical breakdown|
|Damages due to man-made disasters||Damage to the bike if the rider was under intoxication|
|Theft or total loss to the bike||Damage to the bike when the rider was not possessing valid vehicle documents and a driving licence|
|Third-party liability coverage||Damages due to regular ageing of the bike|
|Damages to the insured bike due to an accident||Damage caused to the bike for performing durability tests|
|Third-party liability coverage||Damages caused outside the geographical location specified (India) in the policy document|
|Loss of insured bike due to fire or housebreak||Damage to the bike due to housebreaking, but not resulting in theft|
Factors Affecting Bike Insurance Premium
Like every other insurance policy, you must pay a premium for a bike insurance plan. It is the cost of the policy. Here are the factors that affect bike insurance premiums:
- The bike’s Insured Declared Value: The Insured Declared Value (IDV) of a bike is the highest amount you will receive as compensation for the bike insurance claim settlement. It is calculated based on the bike’s original cost and the depreciation applicable to it.
- The bike’s cubic capacity: Bikes with a higher cubic capacity (cc) have a higher premium. The IRDAI has already pre-defined the third-party premium according to the bike’s cubic capacity.
|Bike’s Cubic Capacity||Premium Payable|
|Under 75 cc||₹538|
|Between 75 cc and 150 cc||₹714|
|Between 150 cc to 350 cc||₹1366|
|Above 350 cc||₹2804|
- Registration zone: Indian cities are divided into Zone A and Zone B per the India Motor Tariff. Bike insurance policy premium is higher for bikes registered in cities under Zone A.
A bike insurance policy is a tool to protect you against the financial implications of damages and financial losses caused due to your bike. You can choose between third-party and comprehensive bike insurance. If you have existing third-party bike insurance, you can buy an additional standalone own-damage bike insurance policy. You must have at least a third-party bike insurance policy to take your bike out on public roads.