Driving a bike means different things to different people. It can be for the daily commute, run errands or for a road trip. If you have just bought a bike, you may be quite excited to drive it on the roads. However, when you own a bike, you should secure it through a bike insurance policy.
What is bike insurance?
Bike insurance is an insurance plan for your two-wheeler. It gives you financial support in the event something unfortunate happens to your bike. Moreover, insurance is mandatory for every bike that is taken on Indian roads.
What are the types of bike insurance in India?
- Third-party liability insurance
Third-party liability insurance is compulsory under the law. It is a plan that protects third parties who may suffer if your vehicle damages any other vehicle. Under the policy, you can tide over the financial repercussions.
- Comprehensive insurance
A comprehensive two-wheeler insurance plan includes third-party coverage along with coverage for own vehicle damage. This plan also includes risks like theft, calamities, accidents etc. The premium for this plan will differ based on the insurer and the plan purchased. It is important to compare the different features and costs of insurance before purchasing the plan.
What are add-ons?
When you purchase comprehensive bike insurance, you get the option of including an add-on to the plan. While add-ons aren’t compulsory, they can surely be helpful.
An add-on is an addition to a plan which will provide you with insurance coverage for specific situations. You can improve the coverage of your policy with these add-ons. The different types of add-ons are:
- Zero depreciation cover
- Roadside assistance
- Pillion rider cover
You must choose add-ons carefully as all they come at an additional price. Therefore, including add-ons to your plan will lead to a hike in your premium amount. Choose only those add-ons that you must have.
What is IDV?
The Insured Declared Value (IDV) is the current market value of your vehicle. It is the amount you will get if your bike is stolen or gets damaged beyond repair. You will have to provide the IDV when you purchase the plan. You must declare the correct IDV, as it has a clear impact on your insurance premium. This value is dynamic. Therefore, it is calculated at the time of bike policy renewal.
The formula used while calculating the IDV is:
IDV = (listing cost stated by manufacturer – depreciation) + (Additional accessories – depreciation)
Before purchasing a bike insurance policy for your brand new bike, you can follow the checklist given below:
- Estimate your needs: Only when you have a clear understanding of your insurance requirements can you purchase the most optimal plan for yourself.
- Bike insurance type: Purchasing a third-party insurance plan is a legal compulsion. However, most individuals opt for the comprehensive plan as it provides both third-party and own vehicle coverage.
- Insurance company: You will have to get your bike insurance plan from a reliable insurance company. You can pick an insurance company depending on the services they provide, their reputation, claim settlement ratio, etc. It would help if you looked through the company’s social media profiles or their customer reviews. You will get a better understanding of the company’s services. It would help if you also considered the simplicity of the claim settlement process provided by the insurer. For instance, you can submit the TATA AIG bike insurance claim by visiting their official website and following a few simple steps.
- Details: The process of purchasing bike insurance will be smooth if you are ready with all the details required. These details include personal information like your name, address, etc. It also involves details regarding your bike.
- IDV amount: The insurer you choose will use the IDV amount as the base to compute the eligible claim. The IDV amount is provided if the bike is stolen or damaged beyond repair.
Following the checklist above can be a smooth way to purchase a two-wheeler vehicle insurance policy. You can also use a tool, like a bike insurance calculator, to determine the optimal insurance policy for your bike. Many insurance companies provide these calculators on their websites. Therefore, if you buy bike insurance online, you can use the calculator to get the best plan possible.
- You can clearly understand the bike insurance premium quotes and select a plan that suits your budget.
- With the calculator, you can determine the optimal IDV for your vehicle.
- You will get to see how different add-ons will affect your premium amount.
- You can choose the most optimal plan for yourself without needing any assistance from an agent.
Hence, if you’re a bike owner, you must take extra precautions to ensure the safety of your bike. One of the most optimal ways to protect your bike is by getting insurance for your vehicle. Before purchasing the insurance plan, you must conduct an appropriate amount of research and learn about the different policies available.
A quick look at some commonly asked queries
- How much is insurance for a new bike?
The insurance cost for a bike would depend on different factors like the bike’s engine, the policy purchased, add-ons included in the plan, modifications made to the bike etc. You can make use of the bike insurance calculator to get a better estimate of the bike’s insurance cost.
- How do I get insurance for my new bike?
If you want to get an insurance policy for your bike, you can visit the insurance company’s office or log in to their official website. Buying bike insurance online can be quite easy. You can also get several bonuses and features when you purchase the plan online.
- Which insurance is compulsory for 2-wheelers?
In India, the third-party insurance policy is compulsory for bike owners. With a third-party insurance plan, you can protect third parties who have suffered damage caused by your bike.
- How long do you have insurance on a new bike?
The duration of the insurance policy will depend on the plan you purchase. You can get short-term and long-term insurance policies for your bike.