Riding a bike in India is exhilarating but risky. Learn why bike insurance is crucial, providing financial protection against accidents, theft, and calamities. Mandatory by law, it offers personal accident cover, third-party liability, own damage cover, and a no-claim bonus, ensuring peace of mind while riding.
Riding a bike is a thrilling experience, but it also comes with its own set of risks. Accidents, theft, and natural calamities can cause damage to your bike, leaving you with hefty repair bills. This is where a bike insurance policy comes in.
A bike insurance policy provides financial protection against any damages or losses incurred by your bike. In India, it is mandatory to have at least a third-party bike insurance policy to ride your bike on the roads. However, purchasing a comprehensive bike insurance policy is highly recommended.
This piece will talk about the importance of having bike insurance in India and the advantages it provides.
The Importance of a Bike Insurance Policy
Legal Requirement
As mentioned earlier, it is mandatory to have at least a third-party bike insurance policy in India. As per the Motor Vehicles Act, 1988, it's mandatory for all vehicles to carry a valid insurance policy for road usage. Riding without a valid insurance policy can lead to hefty fines and even legal consequences.
Financial Protection
A bike insurance policy provides financial protection against any damages or losses incurred by your bike. In case of an accident, the insurance company will cover the cost of repairs or replacement of your bike, depending on the type of policy you have. This can save you from bearing the financial burden of expensive repairs or replacement costs.
Personal Accident Cover
A comprehensive bike insurance policy also offers a personal accident cover for the owner-driver. In case of an accident, this cover provides compensation for any injuries or disabilities sustained by the owner-driver. This can be extremely beneficial in case of a serious accident, where the owner-driver may require expensive medical treatment.
Third-Party Liability Cover
A third-party bike insurance policy provides coverage for any damages or losses caused to a third-party by your bike. This includes damages to their vehicle, property, or any injuries sustained by them.
Should a legal claim arise, the insurance company will absorb the cost of compensation, preventing you from carrying the monetary load.
Own Damage Cover
A comprehensive bike insurance policy also offers an own damage cover, which provides coverage for any damages or losses incurred by your bike due to accidents, theft, or natural calamities. This can save you from bearing the financial burden of expensive repairs or replacement costs.
No Claim Bonus (NCB)
If you do not make any claims during the policy period, you are eligible for a No Claim Bonus (NCB). This is a discount on the premium amount for the next policy period. The NCB can go up to 50% for consecutive claim-free years, making it a great way to save on your insurance premiums.
Peace of Mind
Having a bike insurance policy gives you peace of mind while riding your bike. You can ride without worrying about the financial consequences of an accident or theft. This can help you enjoy your ride to the fullest, without any added stress or worries.
How to Buy a Bike Insurance Policy in India?
Purchasing a bike insurance policy in India is a simple and hassle-free process. You can either buy a bike insurance policy online or offline. Here’s how you can buy a bike insurance policy in India:
Online Purchase
Buying a bike insurance policy online is a quick and convenient option. You have the option to peruse an insurance company's website or an online insurance aggregator to analyze varying policies and select the one that accommodates your requirements in the best way. You can also use online calculators to get an estimate of the premium amount and customize your policy accordingly.
Offline Purchase
You can also purchase a bike insurance policy offline by visiting the nearest branch of an insurance company. You can speak to an insurance agent and get all the details about different policies and their coverage. You can also get an estimate of the premium amount and customize your policy according to your needs.
Types of Bike Insurance Policies in India
There are two types of bike insurance policies available in India – third-party bike insurance policy and comprehensive bike insurance policy. Let’s take a closer look at each of these policies.
Third-Party Bike Insurance Policy
A third-party bike insurance policy provides coverage for any damages or losses caused to a third-party by your bike. This includes damages to their vehicle, property, or any injuries sustained by them. This policy is mandatory in India and does not provide any coverage for damages or losses incurred by your bike.
Comprehensive Bike Insurance Policy
A comprehensive bike insurance policy provides coverage for both third-party liabilities and own damage cover. This policy is not mandatory but is highly recommended as it provides complete financial protection for your bike. You can also customize your policy by adding additional covers such as personal accident cover, pillion rider cover, etc.
How to Choose the Right Bike Insurance Policy?
It's essential to select the appropriate bicycle insurance plan to guarantee comprehensive protection at a reasonable cost. Here are a few factors to consider while choosing a bike insurance policy:
Coverage
The coverage offered by a bike insurance policy is the most important factor to consider. Make sure to choose a policy that provides adequate coverage for your bike and offers additional covers that you may require.
Premium Amount
The premium amount is the cost of the insurance policy. Make sure to compare the premium amount of different policies and choose the one that offers the best coverage at an affordable price.
Claim Settlement Ratio
The claim settlement ratio is the percentage of claims settled by an insurance company. An elevated claim settlement ratio demonstrates the trustworthiness of the insurance company and their consistent history of claim resolution.
Add-On Covers
Add-on covers are additional covers that you can add to your policy for an extra premium. Make sure to choose a policy that offers relevant add-on covers that you may require.
Conclusion
A bike insurance policy is a must-have for all bike owners in India. It offers financial safeguard against any losses or damages experienced by your motorcycle and guarantees your ride is carefree and untroubled. Make sure to choose the right policy that offers adequate coverage at an affordable price. Ride safe and stay insured!
