A two-wheeler is the most convenient mode of transport for many people in India. It allows you to easily navigate through traffic-like conditions and narrow lanes. However, as the make and model of most motorcycles are light-weight, the damage incurred by the rider and the vehicle when involved in an accident can potentially be huge. To safeguard yourself and your vehicle in case of an unfortunate event, you need comprehensive two-wheeler insurance. Though the third-party cover is mandatory in India, it provides limited coverage to your own bike, stressing the importance of a more extensive coverage.
Check out some of the key benefits of getting a comprehensive insurance policy for a two-wheeler to safeguard your motorbike.
Mishaps on the road are uncommon but that doesn’t mean you shouldn’t have a backup against such unfortunate risks. To ensure you never have to worry about the financial aspect of accidental damage and loss caused to your vehicle, comprehensive insurance for bikes can be an important inclusion.
At times, we all face issues due to natural calamities such as floods, earthquakes, hurricanes, etc. depending on where we are located in India. Moreover, man-made disasters like riots, fire, explosions and other such perils can easily affect your precious two-wheeler.
With comprehensive insurance for bikes, you don’t have to worry about either, as both these aspects are covered under the plan. Your insurance provider will compensate you for the loss incurred from such disasters in a hassle-free manner.
Many a time accidents can end with more than just scratches and a totalled vehicle. For such cases, Personal Accident (PA) cover is mandatory to safeguard against accidental injuries.
Comprehensive motorcycle insurance comes with a PA cover that ensures financial security in the event of a disability, injuries or death resulting from the accident. This way, your dependents won’t be left on their own in case something were to happen to you and would receive financial compensation depending on the injury sustained.
As a vehicle owner, you must already know that third party bike insurance is mandated under the Motor Vehicles Act, 1988. However, by purchasing a comprehensive two-wheeler insurance plan, you can also get coverage against such third-party liabilities.
Theft of your motorcycle can be a problem if the authorities aren’t able to track it down. However, comprehensive bike insurance shall compensate you in the event of theft and pay the coverage amount. So, it is recommended to inform your insurer about the stolen vehicle at the earliest for a successful claim.
Here is everything you need to know about the differences between third-party bike insurance and comprehensive bike insurance.
Third-Party Bike Insurance
Comprehensive Bike Insurance
The insurance plan only covers the third-party loss. You can avail a personal accident cover to secure against bodily injuries or death.
The plan provides extensive coverage against third-party damage and loss incurred by your own bike. This cover includes man-made and natural calamities, theft, accidents, etc.
It is more affordable than a comprehensive bike insurance policy.
The premium quote is higher but the coverage provides complete protection against numerous risks on the road.
Third-party insurance doesn't have an option for customisation.
You can easily personalise the features and opt for add-on covers like zero depreciation cover, return to invoice cover, consumables cover, etc.
The damages incurred by your vehicle are not covered.
The insurance plan is more expensive when compared to a third-party policy.
In order to have complete clarity on the comprehensive two-wheeler insurance you would like to purchase, it is important to learn all about its inclusions and exclusions. Here is everything that comprehensive bike insurance can and cannot cover.
Here are some key inclusions of comprehensive two-wheeler insurance:
Damage to third-party property
Bodily injuries sustained by the third party or death of the victim
Theft of bike
Every insurance plan comes with certain limitations. Hence, let’s understand the aspects of comprehensive two-wheeler insurance that are not covered by the insurance provider:
Damage or loss incurred when the policy is inactive or expired
Damage due to mechanical or electrical breakdown
Natural wear and tear or ageing
Loss incurred while riding without a valid driver’s licence
Damage resulting from riding under the influence of intoxicants
Using the bike for commercial purposes
Given below are the insurance riders you could add to your comprehensive bike insurance to customise it as per your preferences:
The return-to-invoice cover can work greatly in your favour, should you lose your bike to theft or complete damage. In such cases, you can claim your bike’s invoice cost through this add-on. The compensation you can claim is directly proportional to the Insured Declared Value of the bike.
The additional personal accident coverage can be very beneficial since accidents in India are commonplace. As the owner of the insured vehicle, getting this added cover can protect your finances in the event of a major accident. You or your family members can claim compensation in case of an unfortunate demise or permanent disability.
Bike consumables are important two-wheeler parts that include nuts, bearings, bolts, gearbox oil, engine oil, etc. A basic bike insurance plan might not cover the expenses associated with these consumables. Hence, adding this rider to your insurance plan can be highly useful during times of a crisis.
You can make sure that deductions are made from the sum insured without factoring the depreciation accrued on your bike’s components. A benefit like this one can be enjoyed only through the zero depreciation add-on cover.
With healthcare costs touching the skies, some extra benefits attached to your bike insurance could help you a tonne. This cover can act as a small health plan included with your comprehensive bike insurance plan. If you find yourself or a pillion rider injured after an accident, you can benefit greatly from this add-on. It can cover the medical and transportation costs that could arise after an accident, potentially resulting in immense savings.
This refers to additional third-party damage coverage. Through this cover you can enhance the already existing third-party liability cover from your comprehensive bike insurance. This helps increase the coverage amount and hence, you will be able to claim a larger sum insured, should the need arise.
There could come a time when you find yourself stranded in the middle of nowhere with a bike that broke down unexpectedly. This cover allows you to claim roadside assistance from your insurer for towing, tyre changes, accommodation assistance, etc.
Insured Declared Value in Bike Insurance is the maximum coverage your vehicle shall receive under the comprehensive insurance policy. Thus, it is crucial to check the IDV being offered and compare various plans, besides just the premium quote.
Similarly, the No Claim Bonus or NCB in Bike Insurance is a reward you can earn on your renewal premium by making zero claims during the policy period. Although it is not advised to avoid filing high-value claims, you can easily make great savings on becoming eligible for NCB!
If you’d like to calculate the premium price of your comprehensive bike insurance, you can follow the steps given below.
Here are the determining factors of the premium price of your comprehensive bike insurance.
1. Insured Declared Value
The IDV or Insured Declared Value of your bike refers to the value at which your bike can be bought or sold on the current market. It is also the highest sum insured that your insurer can provide you with. Hence, the higher the IDV of your bike, the higher the premium price will be.
2. Age of the Bike
The age of your bike matters greatly when it comes to deciding the premium price of your comprehensive bike insurance plan. The older your bike, the higher the bike insurance premium price will be.
3. Make and Variant of Bike
If the make, model, variant, and brand of your bike makes it a low-cost or medium-cost bike, you can expect a lower premium price. However, if your two-wheeler is an advanced or expensive sports or luxury bike, you will be charged a higher premium price.
4. Location of Registration
The location at which your bike was registered can impact your comprehensive bike insurance. If the registration region is a highly trafficked area or is a high-risk location, you might have to pay a higher premium price.
5. No-claim Bonus and Discounts
An NCB or No-claim Bonus is a discount you can earn on an upcoming renewal premium for not filing a claim through one or more policy years. Through this, you premium could be reduced by a maximum rate of 50%, therefore, impacting your premium heavily.
These are extra insurance covers that can be added to your basic comprehensive bike insurance plan to significantly enhance the coverage. The inclusion of add-on covers invites an addition to the premium price, which on increasing can offer you substantial coverage.
No. Comprehensive motorcycle insurance is an optional plan that you can buy to avail maximised protection against perils. Such a policy covers various risks that aren’t included under the mandatory third-party insurance plan.
Owner-riders who frequently use their bike and want to secure it from any damage or loss should definitely opt for a comprehensive two-wheeler insurance plan.
The meaning of comprehensive two-wheeler insurance is that it is a policy that provides extensive security against the perils that may impact your vehicle and result in additional expenses.