✓No Inspection Policy Issuance ✓24x7 Assistance ✓Quick Claim Processing | Buy a Bike Insurance Plan Starting at ₹457/year*

About Bike Insurance

As per the Motor Vehicles Act, 1988, all two-wheeler owners must have at least a third-party insurance cover for their vehicles, but unfortunately, not everyone does. Many people just don’t renew their third-party insurance after their initial policy runs out. However, not having an insurance policy in place can be incredibly risky and open you up to financial liabilities.

 

A two-wheeler insurance policy provides coverage to your vehicle in the event of a natural disaster, theft and more. It also offers protection in the form of third-party liability. We have compiled a bike insurance guide to help you understand the need for two-wheeler insurance and assist you in choosing the best plan as per your requirements.

Types of Two-Wheeler Insurance Available

Broadly, there are two types of insurance policies available in the market today:

 

  1. Third-Party Insurance: A liability only cover, or a third-party bike insurance policy is a plan that is mandated by law. It covers the cost of damage caused by your vehicle to a third party, which could be another vehicle or person. Third-party insurance provides coverage in case of injury or death of an individual, or damage to the vehicle or property.

  2. Comprehensive Two-Wheeler Insurance: Apart from providing third-party liability cover, a comprehensive insurance policy will cover any loss/damage done to you and your vehicle by natural or man-made causes. It also provides personal accident cover & third party legal liability. A comprehensive insurance policy provides an enhanced level of cover.

How is Insurance Premium Calculated?

Features such as cubic capacity (CC) of your two-wheeler, amount of coverage required, cover chosen for accessories and your geographical location plays an important role when it comes to determining the bike insurance premium amount. There are some insurers that also offer add-on covers with the insurance plan itself. However, for add-on covers, you are required to pay an extra amount as a part of your premium. To fully understand how bike insurance premium is calculated, you should take a look at the factors that influence the premium amount.

Factors That Determine Your Two Wheeler Insurance Premium

Insured Declared Value (IDV): IDV is the highest sum payable by the insurance company in case of theft or total loss of your vehicle. The IDV of your vehicle is calculated at the time of buying your cover and is based on the brand, age and model of your two-wheeler. It is very important to learn what is IDV in bike insurance to determine your premium amount.

 

Cubic Capacity: Your premium amount is directly proportional to the capacity of your engine. This means that your premium price will increase with an increase in the cubic capacity of your engine.

 

Additional Riders: When buying two-wheeler insurance, you also have the choice to buy additional riders for enhanced protection, such as the bike theft cover, accidental cover, etc. However, buying these riders will increase the cost of premiums you pay.

Insurance Renewal

For you to maintain continuity, it is very important to regularly renew your bike insurance. There are some insurance companies that offer you a one-year insurance policy, while others might offer a long term one for your two-wheeler. At the time of your two-wheeler insurance policy renewal, ensure that you get your two-wheeler inspected. Generally, long-term policies have cheaper insurance premiums.

Benefits of No-Claim Bonus (NCB)

The NCB is applicable only if you have not made any claim during a policy year. It is a discount that is offered on your premium. NCB is a concept that has been introduced to reward safe driving. As a policyholder, you can get up to 50% NCB with Finserv MARKETS.

What Happens If You Sell Your Vehicle?

Another good thing about two-wheeler insurance is that if you sell your vehicle, you can transfer your insurance policy to the new owner as well. The new vehicle owner will have to notify the insurance company about the purchase and give all the necessary information in order to accurately transfer the insurance policy to their name.

How to File an Insurance Claim?

In case of an unfortunate accident, or mishap, it is necessary for you to know how to apply for the insurance claim process. Given below are the steps for the same:

 

  1. In case of an accident or mishap, immediately inform your insurance company.

  2. Visit the nearest police station to file an FIR and get a copy of it.

  3. Apply for an insurance claim with your insurance provider and provide all the correct and relevant information.

  4. Provide all required documents that the insurance company will need to verify and process your insurance claim such as the FIR, policy paper, vehicle documents, etc.

To Conclude

Bike insurance or two-wheeler insurance is an extremely important tool to protect yourself and your vehicle against damages and financial loss. The above guide to bike insurance will be helpful in choosing a plan that suits your specific needs. If you are looking to buy third-party or comprehensive bike insurance, you can take a look at the various two-wheeler insurance plans available on Finserv MARKETS and choose a plan that suits your needs. 

FAQs on Beginners Guide to Bike Insurance

  • ✔️How to choose a bike insurance policy?

    You can get a good bike insurance policy by going through all the available policies online and choosing the one that is best for you.

  • ✔️Is bike insurance compulsory?

    Yes, you need to have at least third-party coverage for your bike, as per the Motor Vehicles Act, 1988. 

  • ✔️What should I look for in two-wheeler insurance?

    Here are the main points to keep in mind when comparing insurance policies:

    1. Coverage

    2. IDV

    3. Claim Settlement Ratio

    4. Cost of Premiums

    5. Riders

  • ✔️How important is two-wheeler insurance?

    A two-wheeler or bike insurance is an important tool to protect yourself financially against unexpected accidents and damages.

  • ✔️Is comprehensive insurance better than third-party insurance?

    Yes, comprehensive bike insurance provides a higher level of protection as compared to a basic third-party insurance policy.