What is Bike Insurance?
Bike Insurance is also called 2-Wheeler Insurance which protects your two-wheeler vehicles like bikes, scooters, mopeds, etc. financially in case of theft, accident, loss, or damage due to any natural disaster like flood, cyclone, or man-made cause like strike, riots, burglary, etc. It also covers legal and financial loss to third-party liability.
Here, third-party liability includes both bodily injury/death and property damage to third parties.
Why Should You Buy Bike Insurance?
According to the Motor Vehicle Act 1988, it is compulsory for all motor vehicle owners to buy third-party vehicle insurance. Apart from this, there are other advantages that you can get by buying bike insurance for your two-wheeler.
Let us have a brief look.
- Legal need: As mentioned above, when you own a 2-wheeler, you are mandated to buy third-party insurance. Breaching this law may lead you to pay a fine or you may face imprisonment.
- Protection from third-party liability: If you have bike insurance, you do not have to worry about any financial burden in case of an accident with a third party. Because the property damage, bodily damage, and death of third-party due to the accident, all will be paid by your insurance company.
- Transfer of No-Claim bonus: If you buy a new bike, NCB for your previous claim-free year can be easily transferred. Because the bonus is given to the owner or user, not the bike. You can get NCB up to 50%.
- Membership discount: If you are a member of AAI (Automobile Association of India)/WIAA (Western India Automobile Association), then also you will get a discount on your insurance premium.
- Protection from financial loss: Damage repair to your bike may become very expensive for you. If you have bike insurance, then it will cover all your repair bills and also you can get extra coverage like engine, and consumables by paying a very nominal extra price.
- Cashless repair benefit: When you repair your 2-wheeler in any of the network garages, you do not have to pay the repair bills. The insurer will directly pay the bills.
Types of Bike Insurance
Like car insurance, bike insurance is also broadly divided into 3 categories.
1. Third-party bike insurance: As the name suggests, it covers bodily injury/death or property damage to any third party due to an accident with your 2-wheeler. It also covers legal costs, if any case is filed in court.
2. Stand-alone own-damage bike insurance: It covers the damage to your own 2-wheeler in case of an accident or natural/man-made reasons.
3. Comprehensive bike insurance: It provides coverage of both third-party insurance and own-damage (OD) insurance. Along with this, you can also opt for other add-on benefits by paying a nominal extra charge.
Difference Between Third-party and comprehensive Bike Insurance
|Third-party Bike Insurance
|Comprehensive Bike Insurance
|Type of bike insurance that covers any bodily injury/death or property damage to a third party due to an accident with your bike.
|Type of bike insurance that covers your own two-wheeler damage and personal accident along with third-party liability.
|Scope of Coverage
|Buying this policy is not legally compulsory.
|Can get add-on covers by paying an extra premium
|Scope of coverage
Benefits of Buying/Renewing Bike Insurance Online
- Low price: When you buy a policy online, no middleman is involved and very less/no paperwork is needed. This leads to a low premium.
- Easy to compare: Here you can easily compare policies. Because you can find the policies of all companies in one place with a single click.
- More convenient: Buying insurance online is more convenient as you do not have to visit the office physically. You can just sit in your home and search for policies on a laptop, desktop, mobile, or tab; whatever you have.
- Less time taking: As you do not have to visit physically to any office or any agent, buying a policy online is time efficient.
- No hidden information: When you buy a policy online directly from the website of the company, you will get complete information about the policy. As no agent is involved, he/she will not hide/modify any information to the sale policy. So, there will be transparency.
- Informed decision: When you buy a policy online, you can make a more informed decision. Here you will get complete information about the policy as no middleman is involved in between. Also, you can get reviews from many existing customers which will help you make your decision.
- Instant policy issuance: In online policy purchase, you will get your policy copy instantly after filling in certain details and making payment. You do not have to wait for long.
- Easy renewal
- Easy and fast claim settlement
What is Covered Under Bike Insurance?
- Third-party liability (PA cover and third-party property damage), both legal and financial loss
- Personal accident cover
- Loss/damage to your two-wheeler due to:
- Natural causes: Ex – floods, cyclones, and landslide
- Man-made causes: Ex – burglary, strikes, and riots
What is Not Covered Under Bike Insurance?
- Natural wear and tear
- Consequential loss
- Driving under the influence of alcohol/drugs
- Driving without a valid license
- Electrical and mechanical breakdown
- Damage/loss due to involvement in any illegal/criminal activity
- Damage/loss outside India
- War (nuclear, chemical, or biological) or warlike situation
- If your policy has expired
Add-ons in Bike Insurance
It is only applicable in the case of Comprehensive Bike Insurance.
- NCB protection: In normal comprehensive insurance, NCB is applicable only if you do not make any claim in an entire policy year. NCB protection add-on enables you to get a no-claim bonus (NCB) even after making a claim.
- Return to invoice cover: This add-on provides you a sum insured including road tax and registration fees to the original bike price.
- Zero Depreciation (Zero Dep.) cover: During a normal claim settlement process, the claim is settled after deducting the depreciation (due to natural wear and tear) value. When you take this add-on, you will get the total claim amount without any deduction.
- Daily allowance cover: This add-on covers your daily travel expenses when your 2-wheeler is under repair after an accident.
- Engine and Gearbox cover: It covers the cost of repairing/replacing the damaged engine and gearbox.
- Roadside assistance cover: In case of any accident /breakdown of your two-wheeler within the geographical range of your company, your company will send a mechanic to repair it. If needed, it will also provide assistance to tow your bike to the garage, arrange an alternate transport system, and provide other required assistance.
- Consumables cover: This will cover the expense of consumables like nuts, bolts, engine oil, and grease.
- Tire cover: It will cover the cost of repairing or replacing of tires and tubes.
Factors Affecting the Premium of Bike Insurance
- Coverage type: The coverage type you are opting for bears a significant role in deciding your payable premium. Third-party insurance requires the least premium among all 3 types of bike policy.
- Add-ons covered: Add-ons covered to increase the premium of your policy. So, the more the number of add-ons covered, the more the premium will be.
- Geographical location: The location where you drive your two-wheeler largely determines the probability of risk of accidents your vehicle bears. Driving in high-traffic regions brings a high risk of accidents. Similarly, driving in hilly regions also bears more risk of accidents. So, in these places, premiums for two-wheelers are more than in the low-traffic regions.
- Claim history: Your previous claim history also determines, what premium you will pay in your next policy period. If you did not make any claim in the previous policy period, then you will get a discount on your premium as NCB (No-claim Bonus) during renewal.
- Age of your 2-wheeler: As your two-wheeler becomes older, its market value (IDV value) decreases due to natural wear and tear. So, you also have to pay less premium.
- Your age: Generally younger people are believed to be more exposed to accidental risks than middle-aged people. So, as you grow older, you have to pay less premium.
- Capacity of the engine: A higher CC (Cubic Capacity) engine requires more premium.
- Voluntary deductibles: Deductible is the amount of money you have to pay at the time of claim settlement. When you opt for deductible payment, the liability of the insurance company decreases. So, the payable premium also decreases.
- Installed security devices: Installed Security devices increase the safety of your two-wheeler and hence decrease the payable premium.
How to Reduce the Premium of Your Bike Insurance?
When the liability on your insurer decreases towards your vehicle, they will charge less premium. So, you can take the following steps to save your premium.
- Install safety devices.
- Claim your NCB.
- Do not let your policy period lapse.
- Provide the correct IDV value.
- Choose the correct engine capacity (CC value)
- Increase voluntary deductibles.
- Compare and buy policies online.
- Do not make small claims
Factors to Consider Before Buying/Renewing Bike Insurance
- Coverage: You must look carefully into the inclusions and exclusions of the policies before purchasing to avoid problems during claim settlement.
- Type of coverage: Many people prefer taking third-party bike insurance as it is compulsory. But you should buy comprehensive bike insurance. Because it will provide its own damage (OD) cover and personal accident cover along with third-party insurance.
- Claim settlement Ratio (CSR) of the company: You also should look into the CSR percentage of the company, because it will show you the chances of your filed claim being settled.
- Claim Settlement Process: You should buy a policy with an easy claim settlement process so that your claim will be settled quickly.
- Premium Vs coverage: You must compare the coverage provided by your insurer with respect to premiums. You should not compromise on the benefits provided only to pay less premium. So, choose a policy that provides the benefits according to your requirements with a reasonable premium.
- Number of network garages: With more number of network garages, you can get cashless repair facilities in a wider geographical region.
- Correct IDV value: When a two-wheeler becomes older, its IDV value decreases due to depreciation and hence the premium also decreases. So, update your correct IDV value to avoid paying extra premiums.
- Add-on covers: Before purchasing any two-wheeler insurance, you must look into its add-on covers. Opt for only those add-ons that are necessary for you. Do not take unnecessary add-ons. These will increase your payable premium.
How to Buy Bike Insurance Online?
Step 1: Visit the website of any trustworthy Insurance or broker company.
Step 2: Go to the motor insurance tab and click on two-wheeler/bike insurance.
Step 3: Enter the required details like your bike number, your name, and your contact number.
Step 4: Different Two-wheeler policies will be displayed. Look at the policies in detail and select the plan that suits you the best.
Step 5: Choose the add-ons you require.
Step 6: Fill in other required details and pay the premium.
Step 7: Your policy is generated. You will get your policy documents soon on your registered mail ID.
Document Required to Buy a Bike Insurance
KYC (Aadhaar Card, PAN Card)
How to Claim Your Bike Insurance?
Step 1: Immediately inform your insurer and register your claim.
Step 2: Fill in the claim form and submit it to the insurer.
Step 3: The company will send a surveyor for inspection. Cooperate with him to submit the documents he requires.
Step 4: Now, you can take your two-wheeler to the garage for repair.
Step 5: Pay the bills and submit the receipts to the insurer, if you have repaired in a non-network garage.
Step 6: The company will pay you back the claim amount.
Note: In the case of a network garage, the insurer will directly pay the garage. You only have to pay for uncovered expenses and deductibles if applicable.
Documents Required to Claim Your Bike Insurance
- Duly filled claim form with your signature
- FIR copy
- RC (Registration Certificate) copy
- Policy copy
- Driving license
- Repair bills and payment receipt (In case of reimbursement)
- Identity proof
- Address proof
- Photographs of the damage as proof
Apart from these, you may need some extra documents according to the cause of loss or damage (fire, theft, natural disasters, etc.)
How to Renew Your Bike Insurance?
Step 1: Click on the “Renewal Tab” of the Insurance or broker company website from where bought the policy and go to the ‘Two-wheeler/Bike renewal’.
Step 2: Enter the required details like your bike number, name, and contact number. Update the IDV value.
Note: If you purchased the policy earlier from our site, then you do not have to give more details during renewal. You just have to enter your policy number and all your details will be displayed.
Step 3: Select the policy you want to buy. Choose your required add-ons.
Step 4: Pay the premium. Your policy will be renewed and you will get your policy copy on your registered mail ID.
Note: Renew your policy before its expiry to avoid inspection & penalties, and not to lose your previously earned No-Claim Bonus (NCB).
Documents Required to Renew Your Bike Insurance
- RC copy
- Previous policy copy
- KYC (Aadhaar Card, PAN Card)
In case of renewal in the same company, no document is required for renewal.
Renewal Process of an Expired Bike Insurance
Why is it necessary?
Not only it is mandatory to have third-party insurance for all motor vehicle owners, but any unexpected accident/theft can drag you into a huge loss. So, you must insure your two-wheeler before it is too late.
After the expiry date of your policy, the renewal process will be the same as above. Additionally, the insurance company may ask for your vehicle inspection. The company may send someone for an inspection or it may ask for self-inspection.
If you renew your policy within 90 days after the expiry date, your NCB will be retained. After that, it will not be applicable.
So, you should renew your policy within this time duration.
Best Two-Wheeler/Bike Insurance plans
|Claim settlement Ratio
|HDFC ERGO General Insurance
|Doorstep repair service
PA cover – Up to ₹15 Lakhs
Premium – Starts from ₹538
Discount on Premium – Up to 70%
Customization of IDV value – possible
Claim settlement time – within 11 days
Self-inspection through smartphone
Premium – Starts from ₹899
Customization of IDV value – possible
|MAGMA HDI General Insurance
|NCB Benefit – Up to 50%
Easy transfer of NCB
Other Premium discount – Anti-theft device installation (2.5% up to ₹500)
Premium – Starts From ₹959
|Claim settlement – within 20 minutes
24*7 roadside assistance
Premium – Starts from ₹1,040
|TATA AIG General Insurance
|Premium – Starts from Rs.1,005
Discount on the premium on buying online – up to 75%
NCB benefit – Starts from 20%
Add-ons available – 8
|Kotak General Insurance
|Zero depreciation cover
Premium – Starts from ₹989
|Royal Sundaram General Insurance
|PA cover – Up to ₹15 Lakhs
Claim settlement time – Within 10 days
Digital Self-Inspection facility
M-Chart App:- for policy details, claim settlement, and other requirements
Premium – Starts from ₹977
|IFFCO Tokio General Insurance
Premium – Starts from ₹1,012
|Liberty General Insurance
Premium – Starts from ₹1,012
|ICICI Lombard General Insurance ( Acquired Bharti AXA )
|24*7 claim assistance
24*7 Roadside assistance
Self-inspection for claim
PA Cover – ₹15 Lakhs
Premium – Starts from ₹538
|National General Insurance
|Free Helmet coverage
Medical coverage with no deductible
Use of OEM (Original Equipment Manufacturer) Parts while repairing
Premium – Starts from ₹970
|Reliance General Insurance
|NCB benefit – Up to 50%
Claim process – Video claims
Add-ons – 4
TP damage cover – Up to Rs.1 Lakhs for property damage and PTD (Permanent Total Disability)
PA cover – ₹15 Lakhs
Discount available – 20% to 80% (Includes all types of discounts)
|SBI General Insurance
|NCB Benefit – Up to 50%
Damage in transit cover – road, rail, inland waterway, lift, elevator, air
PA cover for pillion rider (Person sitting behind biker) – Up to Rs.1 Lakhs
Premium – Starts from ₹1,036
|Universal Sompo General Insurance
Add-ons – 12
Premium – Starts from ₹1,089
|United India General Insurance
|NCB benefit – 20% to 50%
AAI/WIAA membership discount – 5% up to ₹200
Special discount for vehicles designed/modified for blind, handicapped, or mentally challenged persons – 50%
Premium – Starts from ₹966