Bike Insurance

1. Legal Requirement - In India, having at least a third-party liability cover is mandatory to legally ride on the roads. Failure to comply can lead to fines or even license suspension.
2. Financial Security - Bike insurance protects you from the financial burden of repairing damages to your vehicle or another party’s, especially in accidents.
3. Protection Against Theft - If your bike is stolen, comprehensive coverage can compensate you for the loss, mitigating out-of-pocket expenses.
4. Personal Accident Cover - Most bike insurance policies include personal accident coverage, providing financial support for medical treatment in case of injuries sustained due to an accident.
5. Third-Party Liability - If your bike is involved in an accident causing damage or injury to someone else, third-party liability coverage pays for their expenses or legal claims, reducing your financial risk.

While choosing an insurance policy for your bike, you have to find the policy that meets your expectations and fulfils your requirements. Here are the key factors to consider before selecting a bike insurance policy.

1. Type of Coverage: The policy's coverage is its primary component. Although some insurers require personal accident coverage, third-party liability typically only covers damages that your vehicle causes to another person or piece of property. The benefits of the own damage and third party policies are covered by the comprehensive coverage. Motorbike damage from theft, accidents, natural disasters like floods and earthquakes, vandalism, and riots is covered by own damage insurance.

2. Insured Declared Value (IDV): The IDV is the current market value of your bike. Your IDV affects your premium, higher IDV has a higher premium. It also is the price the insurer pays in case your bike is stolen or damaged beyond repair.

3. Add-on Covers: Among the list of more than 10 add-ons in the market, some are fairly very popular given the benefits they add to the insurance policy. The most brought add-ons are Zero Depreciation Cover, Roadside Assistance, and Engine Protection. Check if the policy is offering these add-ons to add to your policy.

4. Claim Settlement Ratio: Claim Settlement Ratio or CSR is a crucial metric to analyse the efficiency of the insurer in terms of settling claims. It indicates if the insurer settles the claim smoothly. While searching for a policy, look for insurers that have a CSR between 95-98%

5. Network of Cashless Garages: Cashless garages are a very important facility for motor insurance. These are garages that provide services and don't charge any money from you. These garages are directly tied with insurers and get paid directly from them. A large network of garages means that you can easily find one near to wherever you are.

6. Premium Cost: After adding add-on covers, your premium amount should be a balance between coverage and affordability. Check plans from different insurers and compare quotes on InsuranceDekho and find the insurer that provides the required coverage at an affordable price.

To purchase bike insurance, you must fulfil the following conditions:

• The bike should be registered under your name.
• You must have a Government authorised identification card.
• You should have a proof of address.
• You must be above the age of 18 years and have a valid driving license.
• The bike must be registered under the RTO (Regional Transport Office).

Benefits of Buying Bike Insurance

Here are some key benefits of buying bike insurance:

1. Financial protection: The insurer covers the cost of repair if you crash or damage your bike.

2. Covers theft: if your bike gets stolen, the insurer will give you the market value of the bike.

3. Personal Accident cover: With this cover the insurer covers the medical expenses in case you get injured while riding.

4. Legal support: The insurer shows up at the MACT on your behalf with legal expertise in case a third-party claim is filed.

5. Peace of mind: You don't have to worry about the rising expenses of bike repair.

6. Legal Obligation: Third-party coverage is mandatory for every vehicle, not having the policy can lead to fines and even imprisonment.

7. Roadside Assistance: If your bike breaks down in the middle of a journey, you can call immediate help under this cover. A vehicle with equipment will arrive at your location and get you back on the wheels.

• Vehicle Registration Certificate (RC)
• Valid Driving Licence
• Identity Proof (Aadhaar Card/PAN Card/Voter ID/Passport)
• Address Proof
• Previous Insurance Policy
• Invoice of the Bike (For new bikes or to determine Insured Declared Value (IDV)

Note that it is best to check with the insurer as some insurers might need some additional documents.

Claim settlement is the process where the insurer pays for the covers they have provided in the policy. Whenever your bike gets damaged or there is a case of third party damage, you can file a claim if the cause of damage is included in the policy.

There are two types of claim settlement processes:

• Cashless Claim Settlement: In the cashless claim settlement process, you don't have to make any upfront payment to the garage. This facility is available only at the cashless garage network as they have direct ties with the insurer. The insurer companies pay the garages for your repair directly after the work is completed.
• Reimbursement Claim Settlement: In this process, you have to pay for the bike repair at the garage and later send the invoice to the insurer. The insurer will then settle your claim by sending you the money into your bank account.

How to File a Bike Insurance Claim?

To file a claim, the most important thing is to initiate the claim on time. Ideally, you should inform the insurer about the damage as soon as you observe the damage. You can also seek assistance from InsuranceDekho’s claim assistance team by calling on toll-free number 7551196989. You can also send us an email at support@insurancedekho.com and we will schedule a home visit from our relationship manager.

Documents Required for Bike Insurance Claim Settlement

The most common documents required to file a claim for your bike insurance are mentioned below. However, it is best to check with the insurer regarding any additional documents required:

• Original claim form
• Copy of registration certificate (RC)
• Copy of the driving licence of the person driving the vehicle at the time of the accident.
• Copy of policy documents.
• Government-authorised Identification Document.
• FIR or police report (If applicable).
• Repair invoice ( in case of cashless claim settlement)

1. Review Your Current Policy - Check your existing policy, renewal date, and any add-ons or endorsements before you start comparing other insurers.
2. Compare Plans & Premiums - Use online comparison tools or seek quotes from different insurance companies. Look at coverage benefits, claim settlement ratios, and premium costs.
3. Transfer Your No Claim Bonus - If you have an NCB, transfer it to your new policy. This can significantly reduce your premium cost.
4. Notify Your Existing Insurer - Inform your current insurer if you decide to switch. Confirm any cancellation charges or refund amount, if applicable.
5. Coordinate the Switch Date - Make sure there’s no gap in coverage. Ideally, your new policy should begin the same day or before your old policy ends.
6. Complete Documentation - Provide the new insurer with necessary documents, like vehicle registration, previous policy details, and identity proof, to finalize the switch.
7. Check Policy Terms & Conditions - Read your new policy thoroughly to understand its features, claim procedures, and exclusions before you start it.

Common Bike Insurance Terms and Definitions

The world of Insurance does have some jargon and it is crucial to familiarise yourself with them to make the right decision while purchasing bike insurance. Here are some common terms you would hear around insurance:

1. Deductible: This is a pre-agreed amount between the insurer and the policyholder. Deductibles are an amount that the policyholder agrees to pay before insurance covers the claim. For example, if the deductible amount is Rs. 5,000, and the repair cost is Rs. 20,000, then you will have to pay Rs. 5,000 and the remaining Rs. 15,000 will be covered by the insurer.

2. Premium: It is the amount you pay to the insurer for providing you with the insurance policy. Premium can be paid monthly, quarterly, or annually, depending on your agreement with the insurer.

3. Liability Coverage: This is the cover included in third-party bike insurance where the policy covers the damages or injuries caused to a third-party person or property due to a collision with your bike.

4. Collision Coverage: Under this cover, the damages to your bike resulting from a collision with another vehicle or object.

5. Comprehensive Coverage: This coverage combines the benefits of third-party liability and a standalone own-damage policy.

6. Personal Injury Protection (PIP): This cover bears the medical expenses in case of an accident where the policyholder gets injured.

7. Policy Limits: This term denotes the maximum amount your insurance company will pay for a covered loss. Limits usually are set in terms of per-person and per-accident amounts.

8. Underinsured/Uninsured Motorist Coverage: This cover protects you if you're in an accident with a driver who does not have insurance.

9. Actual Cash Value (ACV): This is the replacement cost of your bike after subtracting the depreciation value. It is the actual value of your vehicle in the market as suggested by the name.

10. Agreed Value: This is a pre-agreed amount agreed by the policyholder and insurer which is paid out in case of a total loss, or theft of the bike regardless of the bike's actual value at the time of loss.

11. Endorsement: When you make any changes or add details to your policy that affect the coverage or the premium price, it is referred to as endorsement.