The purchase of bike insurance policy has become easier nowadays owing to digitalization. But, choosing the best bike insurance policy by comparing the policies available in the market has always been a tedious task. There are several insurance companies that offer you attractive packages to grab your attention and induce you to make the purchase. However, in order to ensure that you are on the right track, you have to be very cautious about the coverage those packages offer.
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Types of Bike Insurance Policy and their coverage
The bike insurance policies can solely be categorized into two categories on the basis of coverage, namely, the third party insurance policy and comprehensive insurance policy. The insurance companies may offer insurance policies such as liability only, standalone own damage, package and bundled insurance policies. However, these policies fall under either of the two categories mentioned below.
Third-Party Bike Insurance Policy
As per the Indian Motor Tariff Act, every bike should have a valid third party insurance policy. The third-party bike insurance policy provides coverage for the third party liabilities arising out of accidents due to the insured’s bike. It covers the damage of third party property or vehicle as well as the bodily injury, disability or loss of life of the third party caused due to the insured’s bike. If you are looking for basic coverage at the lowest cost, you can opt for a third party bike insurance policy.
Comprehensive Bike Insurance Policy
A comprehensive bike insurance policy provides extensive coverage for third-party liability as well as “Own Damage” of the insured’s bike. Even though it is not mandatory, purchasing a comprehensive policy ensures all in one protection for the policyholders. It comes along with a wide variety of add-on covers that gives the policyholders the opportunity to stretch the policy coverage as per one’s preference and choice.
The coverage of comprehensive insurance policy can be compiled into a few points, such as
- Theft of the bike
- Damage caused due to natural calamities such as floods, earthquakes, etc.
- Damage due to riots, strike, terrorist attack and other man-made disasters.
- Damage due to accident
- Third-party liabilities
Add-on covers and their coverages
A comprehensive insurance policy offers a good number of options on add-on covers. The add-ons provide coverage for specific aspects of the bike at a slight increase in premium amount. Every insurance company has a specific set of add-ons that varies from one company to another. You can choose the add-on covers as per your insurance needs. Here’s an overview of the most common add-on covers which cater to your insurance needs.
Zero Depreciation Cover
It is one of the most sought after add-on that almost every policyholder avails along with their standalone own damage or comprehensive bike insurance policy. This cover ensures the maximum claim amount by preventing the deduction of depreciation charges. It also provides the facility of free of cost repair and replacement of the depreciable parts of the insured bike. You can opt for the Zero Deprecation cover if you fall under the following categories.
- Luxury bike owners
- Inexperienced driver
- Brand new bike
- People residing in the accident-prone zone
Zero Depreciation add-on provides coverage for the depreciable rubber, nylon, plastic, fiberglass parts of the bike.
Personal Accident Cover
Road accidents may become fatal for the driver and pillion rider. This add-on cover ensures compensation in case of disability or loss of life for the rider as well as the co-passenger. It provides financial security to the family of the rider in case of death in a road accident.
Engine Protection Cover
The engine is the heart of a bike and repairing or replacing it is an expensive deal. The engine protection add-on provides financial protection in case of damage to the engine of the insured bike. If you need coverage for damage due to leakage of lubricating oil, oil ingression, hydrostatic lock or damage of engine parts, you should opt for an engine protection cover. This add-on is ideal for the following cases.
- Those living in the flood-prone area
- Those living in the low lying area
- Owner of luxury car
- Owner of brand new car
Roadside assistance, also known as breakdown cover, is an essential add-on that helps you in case of a sudden breakdown of the bike. This add-on cover provides the following benefits.
- Assistance in case of a flat battery
- Spare keys
- Flat tyre
- Minor repairs
- Towing facility
- Fuel assistance
The insurer arranges technicians and towing facilities if you are stranded in the middle of your journey.
This add-on cover helps you to save up the expenses on consumables such as oil, nuts, bolts etc. It may not be a large expense but availing this cover serves its benefits at the time of claim settlement.
You can ensure financial protection for the high-end electrical and non-electrical accessories of the insured two-wheeler by opting for accessories cover. It is beneficial specifically for the luxury bike owner.
You can get the best bike insurance policy only when you choose the right add-on covers that cater to your needs. It can be a tricky part to choose the add-on covers. All you have to do is to consider the coverage provided by the insurance policy along with the add-ons and the coverage that you require for your bike.