Bike Insurance
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A bike insurance policy protects the insured person, his motorcycle or scooter, a third-party person or property from damages caused by accidents, theft, fire, natural disasters, human-made disasters, total loss, and third-party liabilities. Third-party insurance is required by law for all two-wheeler owners under the Motor Vehicles Act of 1988.
A bike insurance policy covers the damages that may occur to the insured’s two-wheeler – scooter, or motorcycle in case of accidents, theft, fire, natural calamities, man-made disasters, total loss, and third-party liabilities. Third-party bike insurance is mandatory for all two-wheeler owners according to the Motor Vehicles Act 1988.
Highlights of Bike Insurance Plans
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A two-wheeler insurance policy is coverage on your two-wheeler that covers the possible financial contingencies that you might face whenyour insured bike faces any mishap. Third-party coverage is mandated by the Motor Vehicles Act 1988, which covers third-party liabilities resulting due to your insured two-wheeler. You can also opt for an own-damage cover along with the mandatory third-party cover or a comprehensive bike insurance policy to secure coverage against the damages suffered by your own bike itself.
Following are some of the advantages of having an insurance policy for your bike:
- In case of any accident involving your insured bike, if you injure or kill any individual or damage someone’s property, you would be financially liable for the injury or damage caused. In case of accidental death, the liability is quite high. This however gets covered by your insurance policy.
- If your bike suffers heavy damage in an accident, the repair costs are quite high. Having an own-damage cover along with the mandatory third-party cover or a comprehensive bike Insurance will cover such repair
- A bike insurance plan is a mandatory requirement. If you don’t have insurance, you face legal consequences which include heavy fines and might also lead to imprisonment.
Before buying, you should do a bike comparison online. It helps in finding the right bike for your budget. Similarly, it is always recommended to compare bike insurance online and then buy a bike insurance policy. Following are some of the reasons to do so:
- Find the best plan - There are a lot of insurance plans available in the market. Each plan has its own benefits. To know the difference between these plans, you need to compare bike insurance online and select the plan that best suits your requirements.
- Choose a higher IDV– The IDV reflects the market price of your bike after being adjusted for depreciation. Different policies provide different rates for insurance based on the IDV fixed by them. It is the maximum amount for which the policyholder can raise a claim during the policy tenure. Check IDV vs. the premium. A lower premium for a high IDV is value for money.
- Get the best premium rates – Once you choose to compare bike insurance policies, you have the option to get the best quote among the premium rates offered by different insurance companies. Moreover, when you compare bike insurance plans on the discounts offered, you can reduce the premium and save the maximum on two-wheeler insurance costs.
- Get better coverages – If you want your policy to have add-on covers, you should compare different plans and choose the one that has the required coverage features at the best rates of premiums.
- Get cashless garage service – When you compare bike insurance plans, you can choose a policy that has tie-ups with a vast network of cashless garages. This would help you avail of easy cashless claims.
In case of a claim under a two-wheeler policy, the insurer would settle the repair bills after making deductions for depreciation of bike parts. As a result, the difference in the bill and the compensation has to be borne by the owner.
The depreciation rates on the different parts of the bike are as follows:
Parts of the bike | Rate of depreciation |
---|---|
Fibre or glass parts | 30% |
Plastic, nylon, rubber parts | 50% |
Metallic parts | 5% to 50% depending on the age of the bike |
However, if zero depreciation add-on cover is opted for, the insurance company does not deduct the above depreciation from the car’s parts. The full cost of repairs is paid after considering deductibles and non-admissible expenses.
If the person driving the vehicle has a valid license, the vehicle is insured for all the accidents that occurred due to the hazards specified. To insure the person driving the vehicle, who is not the owner, an additional personal accident cover has to be taken for unnamed passengers. For the owner-driver, the policy compulsorily has a personal accident cover, as per tariff.
Vehicle make and model: The policy premium depends upon the make, model, cubic capacity as well as variants. .
Age of the vehicle: The age of the bike is an important determining factor when it comes to calculating insurance premiums online. The older the vehicle, the higher will be the depreciation on it.
Add-ons: A customised plan with add-ons like zero-depreciation, roadside assistance, or engine protect coverage gives better coverage at an affordable cost.
RTO Location: Premiums are lower in low-traffic areas as compared to metro cities and accident-prone zones, where roads are busy 24*7.
Engine type: Premium will also depend upon the type of engine because depending upon the type, whether it is petrol or diesel the IDV changes.
No-claim bonus: If you haven’t made a claim in the previous year, you can avail the benefit of a no-claim bonus on your renewal premium.
IDV: IDV also impacts the premium; more IDV will result in more premium as the value of the vehicle will be higher.
Just like you can compare bike insurance policies online, you can pay your bike insurance premium online through one of the various modes of payment . Once you do an online bike insurance comparison and shortlist a bike insurance plan, you should fill out the proposal form. You will be redirected to the payment page of the insurance company. You can then choose to pay through credit or debit cards, net banking, wallets, or UPI. Once payment is successful, your bike insurance policy will be sent by email on the registered email ID, by post on at the given address and for easy download on the customer dashboard.
Yes, you would be required to pay a premium again for the two-wheeler insurance policy. However, you can avail the benefit of the no-claim bonus offered by your insurance company. Through this benefit, you can get a discount of up to 55% on your own-damage component of your insurance premium, depending on the number of claim-free years and the insurance company’s policy.
You can reduce your bike insurance premium in the following ways:
- Choose the appropriate IDV for your bike
- Select only required add-ons
- Install anti-theft devices certified by ARAI
- Accumulate NCB by riding safely and not raising claims with the insurer
You can also reduce your two-wheeler policy premium by doing an online two-wheeler insurance comparison on Mahindra Paybima. This online two-wheeler insurance comparison will help you find the policy with the best premium rates.
The different types of discounts that you can avail of under two-wheeler insurance plans are as follows
- Discount for installing safety devices
- Discount for being a member of a recognised automobile association
- Discount for choosing a voluntary deductible
- Discount when you buy two-wheeler insurance online
- No-claim bonus discount for not making claims in the past policy year (s)
Here are some things that can get your claim rejected:
- If the insurer finds intentional damages to the insured bike or a fraudulent claim, they can reject third-party or comprehensive cover.
- If the rider was riding under the influence of alcohol when the bike was damaged, the claim will be rejected.
- Every policy has a specified time to notify the company about the accident, from 48 hours to 7 days - intimation beyond that can get your claim rejected.
- If the rider has an invalid license, the bike insurance company can reject the claim.
- If the policy is expired, your claim will get rejected.
- When a personal vehicle is used for commercial, the claim will get rejected, under violation of the terms and conditions of bike insurance.
Getting your claim rejected can lead to a heavy financial impact on your wallet. Hence, follow the below rules and avoid getting your claim rejected:
- Always carry a valid driving license while riding
- Do not drive under the influence of liquor or drugs
- Keep a policy of your insurance on your bike
- Know the list of inclusions and exclusions under your policy
- Always inform your insurance company first in case of any unfortunate accident involving your bike
It is important to renew your bike insurance plan within the due date to enjoy uninterrupted coverage. If the policy is not renewed on time, it lapses, and the coverage stops. Claims in a lapsed policy are not paid. Moreover, when you renew the policy after a lapse, an inspection of the bike is conducted by the insurance company after which the policy is allowed to be renewed.
Lastly, if your policy stays in a lapsed state for 90 days or more, you will lose the accumulated no-claim bonus.