Vehicle ownership offers convenience and brings a sense of freedom and adventure. If you are particularly interested in riding a bike, you know how it feels to own one. However, amidst the thrill of riding, you also need to ensure the vehicle is adequately protected against unforeseen circumstances on the road. This is where bike insurance comes into the picture.
Two wheeler insurance is a financial safety net that shields you from the potential financial burdens of accidents, theft, or damage to your vehicle. While many individuals recognize the importance of bike insurance coverage, understanding the finer details of different plans remains a challenge for most.
We, at RenewBuy, aim to empower you with the knowledge needed to make informed decisions when choosing the right insurance plan for your motorcycle.
What is Bike Insurance?
Bike insurance, also known as motorcycle insurance or two wheeler insurance, is a financial product designed to provide protection and coverage for your motorcycle against various risks and perils. In India, bike insurance is mandatory under the Motor Vehicles Act, 1988, which requires all motor vehicles to have at least a third-party liability insurance policy.
There are primarily two types of bike insurance policies available in India: third-party liability insurance and comprehensive bike insurance.
Bike insurance policies typically come with various coverage options, add-ons, and exclusions, which vary depending on the insurer and the policy chosen. Understanding the terms and conditions of your bike insurance policy can help you get coverage tailored to your needs.
What are the Key Features of a Bike Insurance Policy?
Given below are some of the most common features of a base two wheeler insurance policy:
| Feature | Description |
|---|---|
| Third-Party Liability Coverage | It covers damages and injuries caused to third parties by your bike. |
| Own Damage Coverage | It protects your bike against damages due to accidents, theft, natural calamities, etc. |
| Comprehensive Coverage | It combines third-party liability and Own Damage (OD) coverage, offering extensive protection for your bike. |
| Add-On Covers | These are optional coverage enhancements such as zero depreciation, roadside assistance, engine protection, etc. |
| No Claim Bonus (NCB) | This is the discount on premium for claim-free years, encouraging safe driving and responsible ownership. |
| Deductibles | It represents the portion of the claim amount you must pay before the bike insurance company covers the remaining expenses. |
| Cashless Claims | It is the facility to get repairs done at network garages without paying cash upfront, easing the claim settlement process. |
| Transfer of Insurance | It represents provision to transfer the insurance policy to the new owner in case of bike sale, ensuring continuous coverage. |
| Policy Renewal | You can renew the insurance policy annually to maintain continuous coverage and benefits. |
What are the Primary Benefits of a Bike Insurance Policy?
While the key features of a bike insurance policy outline its components and coverage options, the primary benefits shed light on the advantages and protections it offers to policyholders. These include:
Financial Protection
In the event of accidents, theft, or damages to your bike, two wheeler insurance provides financial coverage for repairs or replacement, saving you from substantial out-of-pocket expenses.
Legal Compliance
Fulfilling the legal requirement of having third-party liability insurance ensures compliance with motor vehicle regulations, preventing legal penalties and fines.
Peace of Mind
Knowing that your bike is insured against various risks gives you peace of mind while riding, allowing you to enjoy the journey with no worries about unforeseen incidents.
Coverage Extension
You can opt for comprehensive coverage to extend protection beyond third-party liabilities to include damages to your own bike caused by accidents, theft, and more.
NCB Accumulation
Accumulating NCB on your bike insurance plan rewards you with discounted premiums for every claim-free year, incentivizing safe driving habits and responsible ownership.
Assistance Services
Two wheeler insurance companies often offer additional services such as roadside assistance, towing, and emergency support, providing timely help during breakdowns or accidents.
Transferability
The ability to transfer the insurance policy to the new owner in case of a bike sale ensures continuous coverage and protects the interests of both buyers and sellers.
Policy Flexibility
With various coverage options, deductible choices, and add-on covers, bike insurance policies offer flexibility to tailor the coverage according to your specific requirements and budget.
What are the Types of Two Wheeler Insurance Policies?
| Types of Bike Insurance | Description |
|---|---|
| Comprehensive Insurance | Offers extensive coverage, including both third-party liability and OD protection for your bike |
| Third-Party Liability Insurance | Provides coverage for damages and injuries caused to third parties by your bike |
| Stand-Alone Own Damage | Provides coverage exclusively for damages to your own bike, excluding third-party liabilities |
| Standalone Third-Party Insurance | Offers only third-party liability coverage, protecting you against damages and injuries caused to third parties |
Understanding the differences between these types of bike insurance policies is crucial for selecting the most appropriate coverage for your motorcycle. To know more about the finer differences between third-party and comprehensive bike insurance, check the table below.
Third-Party Vs. Comprehensive Bike Insurance: Detailed Comparison
| Third-Party Insurance | Comprehensive Insurance |
|---|---|
| Provides coverage for damages and injuries caused to third parties by your bike | Offers extensive coverage for both third-party liabilities and damages to your bike |
| Mandatory by law | Optional but recommended for comprehensive protection |
| Protects from legal liabilities involving your bike. | Protects from legal liabilities and provides financial coverage for damages to your bike |
| Limited coverage, primarily focusing on damages to third parties | Offers broader coverage, including damages to third parties, theft, natural calamities, fire, and more |
| Typically more affordable | Premiums are generally higher due to comprehensive coverage |
| Add-ons may be available | Additional protections and customization options available |
| Suitable for budget-conscious individuals or older bikes. | Ideal for comprehensive protection, especially for newer or high-value motorcycles |
What are the Most Common Bike Insurance Add-Ons?
The following table covers some of the most commonly used add-ons for two-wheeler insurance policies:
| Bike Insurance Add-Ons | Description |
|---|---|
| Zero Depreciation Cover | Provides full coverage for the cost of replacing parts without factoring in depreciation |
| Engine Protection Cover | Covers damages to the bike’s engine due to accidents, water ingress, etc. |
| Roadside Assistance | Offers assistance in case of breakdowns, flat tires, towing, fuel delivery, etc. |
| Personal Accident Cover | Provides coverage for medical expenses and compensation in case of disability or death of the insured rider |
| Accessories Cover | Covers damages to bike accessories, such as helmets, gloves, etc., due to accidents or theft |
| NCB Protection | Preserves the accumulated NCB even after making a claim during the policy term |
| Consumable Cover | Covers the cost of consumable items like engine oil, nuts, bolts, etc., during repairs |
| Medical Expenses Cover | Reimburses medical expenses incurred by the insured rider |
Which Factors Determine Bike Insurance Premium?
Type of Coverage
The extent of coverage you choose, whether it's third-party liability insurance or comprehensive insurance, directly affects the premium.
Insured Declared Value (IDV)
IDV is the maximum sum insured that you can claim in case of a total loss or theft of your bike. Higher IDV leads to a higher premium.
Age of the Bike
Newer bikes typically have higher premiums due to their higher value and repair costs, while older bikes may have lower premiums but may attract higher depreciation charges.
Engine Capacity
Bikes with higher engine capacities are considered riskier to insure and may have higher premiums compared to bikes with lower engine capacities.
Geographical Location
The area where you live affects the premium due to the density of traffic, crime rate, and incidence of accidents.
Claim History
A history of previous claims can influence your premium. A higher number of claims or larger claim amounts may result in higher premiums.
Security Features
Installing anti-theft devices, GPS trackers, and other security features on your bike may qualify for premium discounts.
NCB
NCB is a discount on the premium offered for every claim-free year. Accumulating NCB can significantly reduce your premium payable.
Voluntary Deductibles
Opting for a higher voluntary deductible, which is the portion of the claim amount you agree to bear, can lower your premium.
Add-On Covers
Including additional coverage options like zero depreciation, roadside assistance, or personal accident cover increases the premium amount.
How to Calculate Bike Insurance Premium?
Calculating premiums for bike insurance involves considering various factors, such as the type of coverage, IDV, age of the bike, and more. While it can be a complex process, you can simplify it by using a bike insurance premium calculator.
An online insurance premium calculator takes into account all relevant factors and provides you with an estimate of your bike insurance premium. You can obtain a premium quote tailored to your specific needs by entering basic details about your bike and your coverage preferences.
The calculator can help save time and ensure you have a clear understanding of your insurance costs before making a decision. Simply input the required information, and let the calculator handle the rest, giving you peace of mind knowing that you're making an informed choice.
How to Buy Two Wheeler Insurance?
You can buy a bike insurance policy online conveniently from either the official website of the insurance company or RenewBuy.
Steps to Buy Bike Insurance Via Insurer’s Official Website
- Visit the insurance company’s official website and find the ‘Two Wheeler Insurance’ menu.
- Choose the desired insurance plan that meets your requirements.
- Fill in all the necessary details accurately.
- Proceed to the payment section and make the payment using your preferred mode of payment.
- Once the payment is completed, the insurance company will generate the policy documents and send them via email.
Steps to Buy Bike Insurance Via RenewBuy
To buy a two wheeler insurance policy from RenewBuy, scroll this page up and click ‘View Plans’. Our trusted partners will benefit you with competitive premium rates and a hassle-free policy purchase process.
How to Claim Two Wheeler Insurance Online?
Here's a step-by-step guide on how to claim bike insurance online, ensuring a hassle-free experience in times of need:
Understand your policy coverage
Before initiating a claim, you need to thoroughly understand your two wheeler insurance policy coverage. Familiarize yourself with the inclusions, exclusions, deductibles, and claim processes mentioned in your policy document.
Document the incident
In the unfortunate event of an accident, theft, or damage to your two-wheeler, the next step is to document the incident thoroughly. Take clear photographs of the damages, gather relevant information such as the date, time, and location of the incident, and collect contact details of witnesses if possible.
Notify your insurance provider
Once you've documented the incident, promptly inform your insurance provider about the claim. Most insurance companies offer a dedicated helpline or online portal for claim intimation. Provide accurate details about the incident and follow the instructions provided by the insurer.
Fill out the claim form
Your insurer will guide you through the process of filling out the claim form. This form may be available online on the insurer's website, or you can request for it via email. Ensure that you provide all necessary details accurately, including your policy number, personal information, details of the incident, etc.
Submit required documents
Along with the claim form, submit certain documents to support your claim. These may include copies of your two-wheeler RC, driving license, FIR (in case of theft or accident), repair estimates, and any other relevant documents as specified by your insurer.
Track your claim
Most bike insurance provide online portals or mobile apps where policyholders can track the status of their claims in real time. Stay updated on the progress of your claim by regularly checking the status through these platforms. Your insurer will assess the claim and determine its eligibility for approval. This process may involve inspection of the damaged vehicle, verification of documents, and assessment of the incurred expenses.
Once the claim is approved, you will receive further instructions regarding the settlement process.
Accept settlement amount
Upon approval, your insurer will initiate the settlement process as per the terms of your policy. Depending on the nature of the claim, you may receive reimbursement for repair expenses, compensation for total loss, or settlement for theft or third-party liabilities. You will receive the amount in your bank account.
How to Renew Bike Insurance Online?
Online bike insurance renewal can help you avoid the hassle of visiting physical offices or agents, save time, and ensure continuous coverage for your two-wheeler. Here are the step-by-step instructions to renew your bike insurance effortlessly through online channels:
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Take some time to review your current bike insurance policy before initiating the renewal process. Understand the coverage, benefits, and any changes in premiums or terms since your last renewal.
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Consider exploring different two wheeler insurance plans and providers to ensure you're getting the best value for your money. Select a policy that offers comprehensive coverage at a competitive price and suits your specific needs.
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Once you've chosen a suitable insurance plan you want to renew or switch to, visit the official website of the insurance provider/aggregator. Look for the option to renew bike insurance and initiate the process.
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Provide details such as your policy number, vehicle registration number, and personal information to access your policy details.
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Check for any changes in coverage or personal information that may need to be updated during the renewal process.
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Verify the premium amount and renewal tenure before proceeding to the next step.
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You can also enhance the coverage by including bike insurance riders to your policy.
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Proceed to the payment section to complete the renewal process. After successful payment, you will receive renewal confirmation along with the updated policy document.
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Set up renewal reminders or notifications to ensure continuous coverage for your bike.
What to Consider While Selecting a Bike Insurance Plan?
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Evaluate the coverage offered by different insurance plans, including third-party liability, own damage, theft, and comprehensive coverage. Choose a bike insurance policy that provides adequate protection against various risks.
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Compare premium rates from different insurers to find a policy that offers comprehensive coverage at an affordable price.
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Assess the availability of add-on benefits or riders offered by the insurer, such as zero depreciation cover, roadside assistance, etc. Determine whether these additional coverages align with your requirements and budget.
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Check the Claim Settlement Ratio (CSR) of the insurance company to gauge its reliability and efficiency in settling claims. A higher claim settlement ratio may indicate that the insurer is more likely to honor and process claims promptly.
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Consider the insurer's network of cashless garages and service centers where you can avail of repair services without making upfront payments. Ensure the network includes reputable garages located in your vicinity for convenience during emergencies.
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Evaluate the quality of customer service provided by the insurer, including responsiveness, accessibility, and assistance in claim processing.
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Thoroughly read and understand the terms and conditions of the insurance policy, including inclusions, exclusions, limitations, and claim process.
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Seek recommendations from friends, family, or experts in the field of insurance. You can also consider feedback and reviews from other policyholders to gain insights into their experiences with different insurers and policies.