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A First-Time Bike Insurance Buyer's Guide


Written by Sumit Arora

Updated Aug 09, 2021

Read this article to understand everything you need to know about buying a bike insurance policy for the first time.

Before purchasing a policy, it is critical to conduct research and gain an understanding of bike insurance. You could buy the wrong insurance plan if you don't have enough information, and you won't get the coverage you need. As a result, if you are a first-time bike insurance buyer, you need to consider a variety of factors in order to find the best bike insurance plan for you. The first thing you need to know about bike insurance is that it is mandatory according to the Indian Motor Vehicle Act. Thus, make sure to invest in bike insurance before you take it on the road. 

A First-Time Bike Insurance Buyer's Guide

Types of Bike Insurance Policies

Two-wheeler insurance plans are categorised into three types in general -

1. Coverage for Third Party Liability

The third-party insurance cover is the most basic insurance coverage that every bike owner must have in order to ride a bike in the country. It protects you against any liabilities you may have to third parties or damage to their property.

2. Own-Damage Coverage on Its Own

The Standalone Own Damage policy is a bike insurance policy that provides you with financial protection to cover the costs of any damage or loss to your own bike that occurs as a result of an accident or incident.

3. Complete Insurance Coverage

The Comprehensive insurance policy covers you against any financial obligations you may have to a third party, as well as the costs of repairing your own bike in the event of an accident or other unforeseen incident. You can choose from a variety of add-on covers to supplement your coverage with this cover.

You may also like to read:- Documents Required for Bike/Two-Wheeler Insurance Renewal  

Key Concepts To Consider While Purchasing Bike Insurance

Most insurance companies consider certain factors for determining the premium and settlement amount of your bike insurance policy. The concepts that come to play for making insurance-related decisions are- 

1. Insured Declared Value of Your Bike 

The IDV is the difference between the current market worth of your bike and the amount you will receive as a claim. It is also calculated by subtracting the depreciation amount from the selling price of your bike. As a result, choosing an insurance plan with the appropriate IDV is critical. Although insurance companies offer a lower premium for a lower IDV, choosing a lower IDV for a lower premium may not result in a bigger claim. So, after comparing IDVs from several insurers, choose the policy with the most IDV that fits your budget and criteria.

2. Claim Settlement Process

The ultimate goal of having bike insurance coverage is to file a claim. After an accident or disaster, you'll want to file a claim with your insurer as soon as possible. To qualify for this advantage, seek for services given by insurers such as self-inspection, digital claim processing, and so on. You may also look at an insurance company's Claim Settlement Ratio to see how committed and efficient they are when it comes to settling claims.

3. Additional Covers

bike Insurance companies offer facilities in the form of add on covers. These covers can be added to your standard bike insurance policy to enhance the coverage. Always compare the perks and add-ons offered by different insurance companies and choose a plan that offers a variety of add-on covers so that you may customise your policy's coverage.

4. Cashless Facility 

Insurance companies have tie-ups with authorized garages. These garages are called network garages. If you repair your bike in one of these garages, you will not have to pay the repair bills. The bills will be directly settled by the insurance company. Although you may be reimbursed for having your bike serviced at a non-network garage, it may take some time for your money to be reimbursed, and you will be expected to pay the whole price at the time of the repair. It is advisable that you choose an insurance company with a presence across India so that you may readily get cashless services if the need arises.

Also Read:- How To Renew Bike Insurance Online

Take Away

Purchasing bike insurance is mandatory and also necessary. Make sure to purchase a bike insurance policy that offers optimal coverage at an affordable premium in order to stay safe from the financial liabilities that come along with owning a bike.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.


Written by Sumit Arora

Sumit is an insurance industry veteran with more than 20 years in the industry. Sumit is a frequenRead More

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