For many individuals in India, owning a bike/two-wheeler vehicle is not just a mode of transport but a symbol of personal achievement. Bikes hold a special place in our hearts whether it's the excitement of buying a new bike or the joy of zipping through traffic. The thrill of choosing a model that suits our style and needs and the satisfaction of hitting the road is a cherished experience. However, amidst this excitement, many overlook the crucial aspect of protecting their vehicles with comprehensive bike insurance. They often underestimate the risks and potential costs of not having adequate coverage.
If you still rely on basic third-party insurance, you might miss out on the extensive protection that comprehensive bike policies offer. Let’s find out more.
What is Comprehensive Bike Insurance?
Comprehensive bike insurance is an all-encompassing motor insurance policy that offers extensive protection for your motorcycle. At its core, comprehensive bike insurance includes protection against:
Accidental Damage
This covers repairs or replacement costs if your bike is damaged in an accident, regardless of who is at fault.
Theft
If your bike is stolen, 2-wheeler comprehensive insurance can ensure you are reimbursed for the loss, subject to the terms of your policy.
Natural Calamities
Damage caused by floods, earthquakes, or storms is covered under this policy.
Man-Made Disasters
Acts of vandalism, riots, or terrorism can also result in compensation for any damage to your bike.
Personal Injury
Many comprehensive policies include coverage for injuries sustained by the rider or pillion in case of an accident.
Third-Party Liability
This aspect remains similar to third-party insurance, covering damages to other vehicles or property and legal costs if you are held responsible for an accident.
In short, comprehensive bike insurance can help you manage unexpected expenses that might arise from various unfortunate situations.
What are the Benefits of Buying Comprehensive Bike Insurance?
Here’s why buying comprehensive bike insurance is a smart choice:
- It offers coverage for several risks, ensuring you're protected from various scenarios that could lead to financial loss.
- With comprehensive insurance, you shield yourself from high out-of-pocket expenses that could arise from repairs or replacement costs.
- Having this insurance policy by your side allows you to ride confidently, knowing that you are protected in various situations. This peace of mind is invaluable, especially when riding through the busy streets of your city or on long journeys.
- It also includes third-party liability coverage, offering added protection against claims for damages or injuries to others. This additional layer of security helps manage legal and financial responsibilities.
Also Read: How to Compare Car Insurance?
More About Comprehensive Bike Insurance Add-ons
Comprehensive bike insurance policies come with optional add-ons that can enhance your coverage tailored to your needs. Here’s a closer look at some common add-ons:
Zero Depreciation Cover
This add-on ensures you receive the total replacement value of damaged parts without accounting for depreciation. It is especially valuable for high-cost repairs or replacements.
Roadside Assistance Cover
It provides support in case of a breakdown or emergency. Covered services typically include towing, on-site repairs, and assistance with flat tires or battery issues, ensuring you’re not stranded in difficult situations.
Engine Protection Cover
This add-on covers damages to the engine and other crucial components due to water ingress, oil leakage, or other specific causes.
Personal Accident Cover
It enhances the basic personal injury coverage included in many policies, offering compensation for accidental injuries or death. It can provide financial support to you or your family in a serious accident.
Consumables Cover
This comprehensive bike insurance add-on includes coverage for engine oil, brake fluids, and other consumables that might need replacement during repairs.
Key Replacement Cover
It provides coverage for the cost of replacing lost or stolen keys, including any related locksmith charges or lock replacements.
Recommended Read: Car Insurance Add-On Covers Available In India
How to Calculate Comprehensive Bike Insurance Premium?
Here’s a step-by-step guide to help you calculate comprehensive bike insurance premiums:
Determine the Insured Declared Value (IDV)
Find the current market value of your bike. This is typically listed in your policy documents or can be estimated based on the bike's age and model. In general,
IDV = Market value of the bike - Depreciation
Calculate the Basic Own Damage Premium
Use the following formula to calculate the own damage premium, which is a percentage of the IDV. This percentage varies based on the bike's age and engine capacity.
Basic Own Damage Premium = (IDV) x (Premium rate based on the bike's age and engine capacity)
You can also ask the chosen insurer about your bike’s OD premium.
Include Add-Ons
Determine the cost of any add-on covers you want to include, such as zero depreciation, roadside assistance, or engine protection. Keep in mind that:
Add-On Cover Premium = Sum of premiums for all selected add-ons
Apply No Claim Bonus (NCB)
If you have an NCB from previous claim-free years, apply the NCB discount to the OD premium.
Calculate Third-Party Liability Premium
Include the premium for third-party liability coverage, which is mandatory and fixed by the IRDAI based on the bike's engine capacity.
Calculate the Total Premium Payable
Add all the components together to get the total premium payable.
Total Premium = Adjusted Own Damage Premium + Third-Party Liability Premium + Add-On Cover Premium + GST Amount
You can also use our bike insurance calculator to get an estimate of the comprehensive bike insurance premium payable.
How Can You Reduce Comprehensive Bike Insurance Premium?
You can reduce comprehensive bike insurance premiums while still ensuring adequate protection for your bike. Here are some tips to lower your premium:
Utilise NCB
Maintain a claim-free record to earn an NCB, which can provide a significant discount on your premium. The NCB can accumulate over the years to offer substantial savings.
Opt for a Higher Voluntary Deductible
You can choose to pay a higher voluntary deductible out of pocket before the insurance coverage pays the rest during a claim. This can lower your premium, but you need to ensure you can comfortably afford it in case of a claim.
Install Anti-Theft Devices
Installing approved anti-theft devices can reduce the risk of theft, making your bike less risky to insure. Many insurers offer discounts for bikes equipped with security systems.
Limit Add-On Covers
Carefully select add-ons based on your actual needs. While add-ons do enhance coverage, they also increase the premium. So, choose add-ons carefully.
Choose a Long-Term Policy
Some insurers offer discounts for long-term policies, typically spanning two to three years. These policies can lock in your premium rate and provide savings over time.
Compare Plans Offered By Different Insurance Providers
Search for and compare quotes from multiple insurers. Different companies may offer varying premium rates, which will allow you to find the best deal.
Renew Your Policy on Time
Avoid lapses in your insurance coverage by renewing your policy on time. Continuous coverage can sometimes qualify you for the loss of your NCB.
Recommended Read:How to Renew Car Insurance Policy?
Bundle Insurance Policies
Consider buying different insurance policies from the same insurer. For example, you can buy comprehensive bike insurance with car insurance or health insurance offered by the same insurer to avail of possible discounts.
How to Buy Comprehensive Bike Insurance?
You can purchase comprehensive bike insurance through various channels. Let’s dive deeper.
Steps to Buy Comprehensive Bike Insurance Online
- Go to the official websites of the chosen insurance company and find the bike insurance section.
- Use their online premium calculators to compare policies based on coverage, add-ons, premiums, and benefits.
- Enter the required details about your bike, such as make, model, year of manufacture, and registration number.
- Choose comprehensive coverage and any additional add-ons you want to include in your policy.
- Request a premium quote based on your selected coverage and add-ons.
- Carefully review the policy terms, conditions, and exclusions before proceeding.
- Complete the payment process online. After successful payment, you will receive the policy document via email.
Steps to Buy Comprehensive Bike Insurance Offline
- Visit the nearest insurer’s branch office.
- Speak with an insurance agent to discuss your coverage needs and get recommendations on suitable policies.
- Provide the necessary details about your bike and contact information to the agent.
- Select the comprehensive coverage and any additional add-ons you want to include. The agent will provide a premium quote.
- Review the policy terms, conditions, and exclusions carefully.
- Submit any required documents, such as bike registration, ID proof, and address proof.
- Complete the payment process. You will then receive the physical policy document via email instantly and a physical copy later.
Steps to Buy Comprehensive Bike Insurance Via Insurance Aggregators
- Enter your bike details and compare insurance policies online using reputable insurance aggregator platforms.
- Select the policy that offers adequate coverage at an affordable premium.
- Pay the premium to complete the policy purchase to receive the policy document.
Bike Insurance Comparison: Comprehensive vs. Third-Party
| Parameter | Comprehensive Bike Insurance | Third-Party Bike Insurance |
|---|---|---|
| Coverage Scope | Covers both OD and third-party liabilities | Covers only third-party liabilities |
| Accidental Damage | Covers damage to your bike | Does not cover damage to your bike |
| Theft Protection | Covers theft of your bike | Does not cover theft |
| Natural Calamities | Covers damage from floods, earthquakes, etc. | Does not cover natural calamities |
| Man-Made Disasters | Covers damage from riots, vandalism, etc. | Does not cover man-made disasters |
| Personal Injury | Covers medical expenses for rider and pillion (as per policy terms) | Only covers third-party injuries |
| Add-Ons | Available | Not available |
| Premium | Higher, due to extensive coverage | Lower, due to limited coverage |
| Financial Security | Protects against potential financial losses | Limited to third-party damage claims only |