Motorcycle Insurance: Things To Know Before Hitting The Road
In India, different insurance companies provide different kinds of two-wheeler insurance plans to fulfil people’s requirements. As a motorcycle owner, you must be well-versed in the basics of a policy. In addition, you should carefully compare and then select a bike insurance policy that fits your requirements. Before you hit the road, make sure to be aware of the types of bike insurance policies in India to make the right decision.
Understanding Bike Insurance and Its Importance
A bike insurance policy stands as a legal document provided by motor insurance companies. These companies offer legal and financial protection to the bike owner against multiple unforeseen circumstances. As motorbikes do not come with airbags or seat bells, bikers are quite vulnerable to major injuries. However, the damages caused by an unforeseen accident can be covered with the right bike insurance policy.
Apart from being a legal compulsion, bike insurance policies also provide the needed insurance coverage against own damages and third-party liabilities.
Types of Motorbike Insurance Policies
Before you hit the road with your new motorbike, you must purchase any of the three types of two-wheeler insurance policies. The types of motorbike insurance policies for you to choose from include the following:
Comprehensive Bike Insurance Policy
This insurance policy includes both third-party liabilities and own damages. Under its own damage, this policy offers protection against theft, damage and burglary caused by natural calamity, accidents, and man-made disasters. In addition, a comprehensive bike insurance policy also comes with add-on covers for certain circumstances by paying for some extra premium.
Third-Party By Insurance Policy
In India, two-wheeler owners must purchase a third-party bike insurance policy. This policy takes responsibility for any losses caused to any third party, life or property due to an accident. This policy is a liability covered by insurance; however, it does not cover any damage or loss caused to your vehicle.
Standalone Own Damage By Insurance Policy
The standalone damage bike insurance provides coverage to your vehicle against damages caused by man-made disasters, natural calamities, theft, fire, and accidents. You can only purchase this policy if you already own the third-party insurance policy.
Two-Wheeler Insurance Policy: Coverage Offered
Before a two-wheeler owner purchases an insurance policy for their vehicle, they must carefully consider all the coverage offered by different insurance policies. Mentioned below are some of the exclusions and inclusions of a comprehensive bike insurance policy:
Inclusions
Inclusions consist of circumstances that are covered under your comprehensive insurance policy:
- Damages caused by natural calamities, such as earthquakes, floods, or landslides
- Damages caused due to man-made disasters, like vandalism, fire, strikes, etc.
- Losses occurred due to the theft of the insured bike
- Coverage for any third-party liabilities, including disability, death, or property damage
Exclusions
These exclusions are cases where you will not receive any compensation under the comprehensive bike insurance policy:
- Damages occurred due to daily wear and tear
- Losses due to contractual liabilities
- Damages occurred when the rider did not carry any valid documents such as RC, DL, PUC certificate and bike insurance policy
- Damages sustained when the rider has consumed intoxicating substances or alcohol
- Damages occurred due to mechanical or electrical breakdown
Major Factors Affecting Your Bike Insurance Premium
Do you know how the premium of your bike insurance policy gets computed? Well, the factors mentioned below affect the premium of your bike insurance policy:
Insured Declared Value (IDV)
IDV stands as the maximum amount paid by the insurer during the claim settlement. It is calculated on the basis of the listed selling price of the model and brand set by the manufacturer and then decided according to the standard depreciation rates.
Bike Engine Capacity (CC)
The rise in the engine capacity of two-wheelers follows a rise in the premium. According to IRDA, third-party premium rates are based on the cubic capacity of the bike engine.
Geographical Location
As per the Indian motor tariff, the country is diversified into zones A and B. Zone A consists of cities such as Chennai, Ahmedabad, Mumbai, New Delhi, Bangalore and Kolkata. On the other hand, zone B includes the rest of the country. The premium rates are higher in cities that fall under Zone A than in Zone B.
Vehicle Age
The premium rates increase with the age of your vehicle, whether it is a touring bike or a sports bike. Hence, the older your bike gets, the higher the premium you need to pay to maintain it as the value of its components is depreciated.
Conclusion
Every rider is thrilled to hit the road with a newly bought 2-wheeler, like a BMW K 1600 GTL, which offers comfortable and exclusive performance touring. However, one must not ignore their responsibilities under any circumstances. This is why you must first purchase a bike insurance policy that fulfils your coverage needs. Safety is a priority you must never overlook!
