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  • Writer's pictureTeam ArthaPurna

Bike Insurance

Updated: Aug 24, 2022

Two-wheeler insurance, commonly referred to as bike insurance, is a contract between a bike owner and an insurance provider that provides coverage for damages to the bike, a third party, or in some circumstances even the bike owner. In essence, it safeguards the bike owner's finances in case of any unanticipated calamity, such an accident, theft, or a natural disaster. It has been noted that as there are more bikes and other two-wheeled vehicles on the road, the likelihood of an accident also rises. In light of this, having a reliable bike insurance policy is essential.

You might be curious about the many types of bike insurance policies and which one best suits your needs. Let's quickly explain each of them. The first is third-party bike insurance, which covers any legal obligations to third parties or property damage to third parties. This means that your bike's damages to a third party's person or property will be covered by your two-wheeler insurance policy. According to the Motor Vehicle Act of 1988, motorcyclists operating on public highways are required to carry at least a minimal third-party insurance policy.

Second, you should get a comprehensive bike insurance policy if you want total coverage for your bike, yourself, and any third parties. This two-wheeler insurance offers financial security from mishaps, natural disasters like storms, cyclones, and fire, as well as man-made events like riots, terrorist attacks, vandalism, etc., along with any obligation to third parties. This protects your bike from harm, preventing even minor scrapes from requiring you to incur additional costs. Online bike insurance policies from the insurer are quick and simple to purchase and are designed to protect your bike and leave you stress-free.

Depending on your needs, you may select from a variety of bike insurance policies when you purchase it online. Additionally, your comprehensive bike insurance coverage can be supplemented with 7 add-ons to provide additional protection for your bike. To check the cost and purchase your appropriate bike insurance coverage, you can get a quick estimate from the insurer’s website.

Why Is Motor Bike Insurance Required?

Your bike insurance coverage can shield you and your bike from unnecessary costs in a variety of circumstances. Every bike owner in India is required by the Motor Vehicles Act of 1988 to have at the very least a third-party bike insurance coverage. A two-wheeler insurance coverage, however, might be useful in a variety of situations besides that.

  • Protection from legal penalties

Riding a bike without a valid third-party two-wheeler insurance policy is prohibited. By not having bike insurance, you run the risk of receiving significant legal and traffic fines. To avoid the headache of running afoul of the law, it is advised to always have your two-wheeler insurance policy with you, even while you are inside the city limits.

  • Defense against liable third parties

If your bike damages a third party's property or vehicle or injures a third party person, a third-party bike insurance coverage offers financial protection. According to the Motor Vehicle Act of 1988, in order to ride a bike on the road, you must obtain third-party liability insurance. Lack of an active third-party two-wheeler insurance policy may result in harsh punishments and high fines.

  • Financial protection from robbery

Far while the theft or significant damage to your car could be an upsetting emotional experience, the financial fallout is even worse given how expensive a two-wheeler is. The expense of replacing your vehicle or fixing the damage it caused can be covered by a two-wheeler insurance coverage without you having to spend a lot of money out of your own pocket, which will lessen your stress both mentally and financially.

  • Protection from both natural and man-made calamities

The financial plan of your two-wheeler insurance coverage will protect your bike from damages brought on by floods, lightning, cyclones, hurricanes, and other natural phenomena in the event of a natural disaster in your area. Similar to this, the bike insurance policy also covers damage to your two-wheeler from man-made violent acts like terrorism and vandalism.

  • Personal accident cover

Your two-wheeler insurance can pay for any type of personal injuries you may have had if you are injured while riding your bike, whether they are significant or minor. While the physical harm itself may be upsetting, the financial security provided by personal accident insurance can greatly lessen the inconvenience!

Types Of Two Wheeler Insurance :-

  1. Comprehensive Bike Insurance Policy: The comprehensive bike insurance policy has been created to provide defense against third-party liabilities, coverage for losses or damages brought on by theft and both natural and man-made disasters, as well as a personal accident cover for the owner-driver. The policy, however, excludes coverage for damages if the bike owner operates the vehicle while intoxicated or outside the specified geographic area.

  2. Own Damage Bike Insurance Policy: In the event that an unfortunate accident results in damage to your bike, the Standalone Own Damage Bike Insurance Policy is advantageous. While third-party liabilities are not covered by the Own Damage policy, your bike can still be financially protected against damage brought on by fire, natural disasters, and man-made disasters. This two-wheeler policy also provides compensation if the bike is stolen.

  3. Third-Party Bike Insurance Policy: If you want to ride your bike on the roads, you are required by law to have third-party two wheeler insurance. If, as a result of an accident, your vehicle ends up damaging another car or injuring another person, our stand-alone third-party two-wheeler insurance policy will assist you. However, this policy does not allow you the same level of protection for your bike. A third party coverage does not cover bike theft or damage to the bike.

Add-on Covers for Two-Wheeler Insurance :-

Choose from a choice of seven distinct bike insurance add-on policies to enhance your comprehensive two-wheeler insurance:

  1. Depreciation Allowance: You may combat depreciation with this addition, also referred to as Zero Depreciation, NIL Depreciation, or Bumper-to-Bumper Cover. We will cover the depreciation with this add-on if you submit a claim for the replacement or repair of parts for your bike and it is reduced by depreciation. Please take note that only the first two claims are eligible for you to receive this bonus.

  2. Return-to-Invoice Cover: In the event of theft or complete damage, this add-on enables you to receive the invoice price of your vehicle as compensation. You receive the bike's current market value, or the Insured Declared Value (IDV), in the event of total damage, constructive total damage, or theft. With this add-on, we will reimburse you for the bike's purchase price, which is its on-road cost (inclusive of road taxes and registration).

  3. Medical Emergency Expenses: Receive compensation for accident-related damages, including ambulance and emergency medical costs. If you or the pillion rider is hurt in an accident, this add-on will make it easier for you to get reimbursed for the costs of your medical care at any hospital or nursing home. It also covers the price of getting you and your passenger to the hospital.

  4. Additional Personal Accident Cover for the Owner-Driver: In the event of significant injuries or fatalities brought on by an accident, this add-on will provide you and your family with additional Personal Accident Coverage. We are aware of the increased danger of accidents when biking. With this add-on, in the event that an accident results in death, we will provide a predefined payment to your family. The sum assured under this add-on will be greater than the minimum required for vehicle insurance.

  5. Additional Third-Party Property Damage Cover: With this add-on, receive additional third party cover reimbursement. Both third-party and comprehensive two-wheeler insurance coverage already includes third-party liabilities. However, if you want to have more coverage for third-party liabilities, you can purchase this add-on.

  6. Consumables Expenses: With this add-on, we will cover the costs of replacing, renewing, or repairing certain bike consumables that are damaged or lost due to an accident. Consumables such as screws, nuts and bolts, washers, bearings, clips, brake fluid, grease, lubricants, distilled water, and other similar items are covered, but not fuel.

  7. Roadside Assistance: Nothing is worse than a fantastic bike trip being ruined by a vehicle breakdown in the middle of the road. Roadside assistance will arrive shortly, so don't worry! When you purchase this add-on, we will dispatch rapid breakdown assistance to your location to handle a range of problems, including a flat tyre, a dead battery, a need for gasoline, mechanical or electrical repairs, etc. Under some conditions, we also provide on-the-spot repairs to get you back on the road and travelling quickly!

Factors Affecting the Cost of Bike Insurance

Numerous factors will determine and have an impact on the cost of your two-wheeler insurance. In general, a bike's premium price is determined by the amount of risk it carries. Other elements that may impact the cost of your auto insurance include:

  • Coverage and Type of Insurance Policy

Your two-wheeler insurance premium amount is primarily influenced by the type of coverage or policy you choose. Because the coverage of these policies is not wide, the premium will be fairly minimal if you choose a basic third-party insurance cover. On the other hand, due to the degree of coverage, a comprehensive bike insurance policy will have higher premiums. If you choose to put on our other add-on covers, such as your own damage, third party liabilities, or personal accident, the cost of your comprehensive auto insurance policy may rise even further.

  • Age of the two-wheeler

Age and market value of the bike have an inverse relationship, which has an impact on IDV, or insured declared value. The IDV is both the motorcycle's estimated market value and the maximum for which it is covered by insurance. Since the IDV is the bike's total amount insured, it affects the cost of the premium. As a result, as the bike gets older, its market value declines, the IDV drops, and the premium follows suit.

  • Make and model of the bike

A cheaper bike type will be available than a designer or sports bike. Once more, the market value and IDV of an expensive bike will be higher, resulting in higher premiums, whereas the premiums for a more reasonably priced bike will be lower.

  • NCB or No Claim Bonus

The No Claim Bonus is a reduction in premiums that insurance companies give to policyholders in exchange for safe driving and no claims during the prior policy year. When the policyholder renews their comprehensive two-wheeler insurance policy, the discount is paid to their vehicle insurance premium. Starting at 20%, the discount rises to 50%.

  • Geographical location

The location or neighbourhood where the insured two-wheeler operates has an impact on the premium cost. There is less likelihood of accidental damage to the bike in low-risk or low-traffic areas like small towns and villages, which lowers the cost of two-wheeler insurance. Additionally, if the insured bike is being ridden in a city with significant traffic, the policyholder will have to pay higher premiums.

  • Age of the Insured & Driver Record

The cost of a person's bike insurance may depend on their age. Older cyclists are thought to be more seasoned and experienced on the road, but younger riders face a larger danger because they are first unfamiliar with biking and traffic laws. Therefore, a young cyclist is more likely than an older one to pay a higher two-wheeler insurance premium. Additionally, drivers with poor driving records typically have to pay greater premiums than those who drive safely.

  • Engine type/Cubic capacity

The key factor used to determine the rate for third-party bike insurance is the bike's cubic capacity. Therefore, if your bike has a high cubic capacity (cc), the premiums will likewise be expensive.

  • Safety devices

When a bike has a safety feature installed, such as a burglar alarm, the insurance company will charge a lesser premium because the bike is less likely to be stolen and so poses a smaller risk.

  • Modifications of the bike

Due to the specialized features that make the bike more appealing, a modified bike costs more than an unmodified one. A two-wheeler with more decorations is more likely to be robbed than a basic cycle, hence their premium is higher because they carry more risk.

How To Reduce Bike Insurance Premium?

What if we told you there was a method to lower the cost of your bike insurance without sacrificing the coverage provided by the policy? You heard correctly! Here are a few tried-and-true methods to reduce the cost of your two-wheeler insurance:

  1. Avoid Small Claims to Maintain the No Claim Bonus: If you do not submit a claim during the period of the policy, you will receive a No Claim Bonus (NCB), which is a percentage discount on the renewal price. Avoid submitting a small claim if the amount is less than the entire NCB discount to receive reductions of up to 50% on your renewal premium for five years in a row without filing a claim.

  2. Remember to claim your accumulated NCB: As was already mentioned, NCB is a reduction in the renewal premium. Therefore, when you renew your two-wheeler insurance coverage, be sure to utilize the applicable discount.

  3. Choose a Higher Voluntary Deductible: The portion of the claim that you are responsible for paying out of pocket is the deductible. Your bike insurance premium will be less expensive if you choose a higher voluntary deductible because the insurance company's financial obligation will be reduced.

  4. Install Authorized Safety Devices: The likelihood of a car being stolen will be decreased by the installation of safety equipment approved by the Automotive Research Association of India (ARAI), ranging from a simple handle lock to CCTV cameras in the parking garage. In turn, this lowers the risk factor and lowers the price of the two-wheeler insurance premium.

  5. Join Indian Authorized Riding and Automobile Groups: The IRDAI has recognized a few riding organizations where you can join and receive a discount on your two-wheeler insurance cost, including the Indian Automobile Association.

  6. Be Aware of the Age and Engine Cubic Capacity of Your Motorcycle: The age and cubic capacity of the bike have a direct impact on the insurance cost. Lower premiums are offered for older bikes. Similar to this, the premium increases as the cubic capacity increases. To receive lower premiums, then, be careful to provide the exact age and engine cc.

  7. Calculate the Two-Wheeler Premium Before Buying: Using a two-wheeler premium calculator, you may calculate the precise premium you must pay for your insurance. You can modify the policy by adjusting the add-ons, for example, and purchase a policy that fits within your spending limit.

  8. Avoid modifying and adorning your bike excessively: Extreme bike modifications raise the bike's market value or insured declared value (IDV), which drives up the premium.

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