Riders Too Need Armours: Your Guide on Bike Insurance

Two roads diverged in the woods and I 

I took the one less travelled by, 

And that has made all the difference – Robert Frost. 

Just bought a new bike? What are you waiting for? Go on a new journey and discover unchartered territories. Let the stress and worries of life be left behind as the dim city lights pass by you in a blur. But before you do that, ensure you are physically and financially secure against any mishaps. Wear a helmet, follow the traffic rules and the speed limit to ensure a safe and pleasurable ride for yourself and others.  

However, no matter how careful we are, disaster can strike. Get bike insurance to get coverage against damages caused to you and your bike in case of an accident. The government has also made it mandatory for owners to buy two-wheeler insurance under the Motor Vehicles Act of 1988 to ensure a rider’s financial security. Are you puzzled and don’t know where to start? Don’t worry. Let’s first understand the numerous benefits and features of bike insurance.  

Key Features and Benefits:

Low Premium – The premium for two-wheeler insurance is typically low and does not put a massive burden on your finances. Starting at ₹457* a year, these policies are pocket friendly. Getting these during discount and offer periods can considerably lower the charges. 

*Price on Bajaj Markets 

Quick Claim Settlement – These policies have a faster claim settlement process. The insurers ensure that the claims are settled quickly with the help of trained employees in the segment. The insurance providers can present a high claim settlement ratio due to this.  

Add-Ons – It is possible that a single policy may not fulfil all your requirements. To help provide all that you need in your insurance, companies give you the option to purchase add-ons. With this, you can get a range of additional services for certain extra charges. In a way, you can customise your policy to cater to your requirements with the help of these add-ons. 

Cashless Repairs – Suppose your insurer is partnered with certain garages and mechanics. In that case, it is possible to get your bike repaired without any hassle with the cashless facility. Under this, you are not required to pay for the repairs, as the insurance provider settles the bills directly with the garage.  

No-Claim Bonus – The no-claim bonus is one of the basic benefits of bike insurance. Suppose you do not raise a claim within 12 months of buying the policy. In that case, you are eligible for discounts and leverages during renewal.  

Did you know that even bike insurances are of several types based on the coverages they provide? Here are the three types of policies you should know about to select the right insurance for your bike:  

Types of Bike Insurance:

Bike insurances can be broadly categorised into three types. Each has its own specific characteristic, making it necessary for us to understand them before buying the insurance. 

1. Third-Party Insurance – This is the most basic and affordable bike insurance available. It provides financial protection and assists in the settlement of third-party damages and legal liabilities. It also provides coverage against injuries, disabilities, and death of the insured. This is the most basic type of bike insurance for riders. It has been made mandatory by the government for two-wheeler owners to get a policy with this level of coverage.  Riding a bike without the cover may lead to hefty fines and prison time.  

2. Own-Damage Insurance – This covers repair and damage expenses incurred from accidents, theft, and calamities (natural and man-made). It is usually taken by riders who already have a third-party insurance and seek to financially protect their bike too. So, if you love your dear bike and want to protect it, consider getting this insurance.

3. Comprehensive Insurance – This insurance policy provides a comprehensive plan with extensive coverage. With this you get help managing third-party losses and liabilities in case of an accident. It further provides coverage for you and your two-wheeler. The insurance provides financial assistance against damages from theft and calamities as well. It is considered the most popular insurance policy despite being more expensive than third-party insurance.  

Now that you know the type of insurance you need, it is time to understand the factors that can affect your premium. Your premium amount depends on many factors like the type of plan you choose, the add-ons, and much more. Let us learn more about these so you can pick the right plan that aligns with your needs and budget! 

Plan – The plan you select affects the premium you are required to pay. A comprehensive insurance plan is considerably more expensive than a third-party policy. Hence when selecting a plan, look at what it offers and if it aligns with your requirements and finances. 

Engine Capacity – The larger the engine capacity, the more expensive your premium can get. Therefore, the engine is one of the most important determinants of your premium.  

Vehicle Age – The Insured Declared Value (IDV), the highest claim amount your insurer will pay, depends on the manufacturing date of your bike. As your bike gets older its value depreciates, which lowers the bike’s IDV. As a result, this figure significantly impacts how much your insurance will cost. Therefore, if the IDV is lower, the premium will also be lower but, if the IDV is higher, the premium will be higher. 

Modifications – Modified bikes undoubtedly have stunning performance and design. However, you could sustain significant losses if the modified components are harmed. Hence, it is important to separately insure certain parts of your two-wheeler using the ‘Accessories Cover.’ Please note that if your bike has more modifications, your premium will be higher. 

Add-on Covers – Add-on coverage is necessary to increase the benefits of your insurance plan. However, there are different costs associated with each add-on cover which can significantly hike your premium amount. Therefore, it is advisable to select only those that are required. 

Enjoy a safe and worry-free ride; let the wind blow your hair and the sceneries shift before your eyes. With good insurance, be secure wherever you go! Before you set out on your journey, how about getting your bike insured on Bajaj Markets? We have a variety of plans for you to choose from. Select a policy from top insurance providers like HDFC ERGO General Insurance, Bajaj Allianz General Insurance and more! So, what are you waiting for? Get the required assistance and discover the road ‘less travelled by.’