Bike Insurance

Two-wheeler insurance is an agreement signed between a two-wheeler owner and an insurance company. Under this, an insurance company promises to pay for the financial liabilities which may arise to any damage incurred or caused by the policyholder’s two-wheeler in return of a premium paid by the latter. The coverage of damages depends on the type of two-wheeler insurance policy. While a third-party two-wheeler insurance plan offers coverage only for third party liabilities, a comprehensive two-wheeler insurance (bike insurance) plan takes care of both third party liabilities as well as own-damages incurred by the insured’s two-wheeler.

Best bike insurance company varies from policyholder to policyholder depending on their requirements such as type of plan, add-on covers, customer support service, etc. However, one reliable parameter to compare different bike insurance companies is the Claim Settlement Ratio (CSR). A Claim Settlement Ratio refers to the percentage of claims settled by a 2 wheeler insurance company out of the total number of claims received by it during a financial year. The higher the claim settlement ratio, the better it is.

There are three types of 2 wheeler insurance/bike insurance policies in India namely third-party bike insurance policy, standalone own damage bike insurance policy, and comprehensive bike insurance policy. While a third-party/liability only provides coverage for third-party liabilities only, a standalone own damage cover takes care of the own-damages incurred by your two wheeler only. A comprehensive 2 wheeler insurance policy is a bundled cover which provides coverage for both own damages as well as for third party liabilities.

Third party bike insurance is fixed by the Insurance Regulatory and Development Authority of India as per the engine capacity of the two wheeler. However, the premium for standalone own damage and comprehensive two wheeler insurance plans vary from 2 wheeler owner to bike owner. The own-damage premium depends on a number of factors such as RTO location, Make, Model, and Variant of the bike, engine capacity, registration city, fuel type, etc.

A third party bike insurance is the type of insurance that covers for the expenses related to losses and damages that you may incur towards a third party after an accident with the involvement of your two-wheeler. It gives coverage for bodily injuries, death or property damages of the third party. The coverage for property damages is limited to Rs. 1 lakh, while, in case of death, the claim amount is decided by the court.

You should buy a two wheeler insurance as according to the Indian Motor Tariff, it is a mandatory requirement for every bike owner for being able to drive the vehicle legally in the country. Besides legal compliance, a 2 wheeler insurance (Bike insurance) policy also provides you with financial stability if your bike meets an accident in the future.

Call your insurance company and inform about your claim. You can either choose for a cashless claim settlement option or settle for reimbursements post a claim.

As per the Indian Motor Tariff, every bike owner needs to mandatorily have at least a third party bike insurance plan. It is compulsory to own the basic liability only cover for every bike rider, otherwise, he can be penalised on being caught with a fine of Rs. 2,000 and/or imprisonment of up to 3 months.

The third party bike insurance premium is fixed by the IRDAI, while the premium for standalone own-damage and comprehensive insurance covers vary from one insurance provider to another. Here are some factors that influence the standalone own-damage bike insurance policy:

1. Insured Declared Value – The market value of a bike is also known as Insured Declared Value (IDV). The insurance company pays the amount of IDV to its policyholder in an event of the bike's total loss. Higher bike IDVs attract higher premium amounts.
2. Bike’s Age – The age of the bike affects its premium as well. As the bike ages, its value reduces due to the default depreciation. The normal wear and tear also reduces the value of bikes in the market because of which the premium of bikes also reduces. Hence, the higher the age of the bike will be, the lower will be its premium.
3. Make, Model and Variant – The bike’s make, model and variant also affects its insurance premium. The MMV of the bike influences its IDV value with which its premium cost also gets affected.
4. Registration Place – The bike registration location also impacts the premium amount for its insurance plan. The insurance company charges a higher insurance premium from the bikes registered in places with more traffic density or prone to accidents.
5. Engine Cubic Capacity - The engine cubic capacity affects the premium of the bike insurance cover. The bike with greater cubic capacity is charged with higher premium.

Yes, the owner of the two-wheeler insurance (bike insurance) can transfer it to the new owner of the bike, in case the sale of a second-hand bike. The transfer of insurance ownership must be completed within 14 days of bike purchase.

No, there can be only one insurance plan to cover a bike. However, a bike owner can purchase a standalone own-damage cover along with the third party insurance cover separately, instead of buying a single comprehensive bike insurance plan.

The claim for bike insurance can be made online by following the steps given below:

1. Step 1: Register the bike insurance claim at the insurer’s website or its mobile app.
2. Step 2: On the registration of claim, the bike’s owner receives a claim registration number.
3. Step 3: After the registration of claim, the insurance provider sends a surveyor to the location where the accident or mishap has occurred to examine the extent of damage. The policyholder is required to submit required documents to the surveyor at this stage.
4. Step 4: The damaged bike is to be sent to a garage for repairs. The repair bill is generated based on the damages sustained by the bike.
5. Step 5: If the bike is repaired at a network garage of the insurance company, then the bill is settled directly by the insurer. But, if the bike is sent to a non-network garage for repair, in such a case, the policyholder is required to pay the bill after a repair which is later reimbursed by the insurance company.