Bike insurance is vital for all bike owners. Apart from complying with the law, it is essential to get financial protection against accidental risks. If you get involved in an accident, the insurance coverage will help you get compensation for the damages. So, if you are a bike owner, you ought to know a few important things about bike insurance before you purchase one.
Types of bike insurance policies
In India, you can purchase two types of insurance policies – third-party insurance and comprehensive insurance. The former is a mandatory requirement, but you can also purchase a comprehensive cover voluntarily if you want to get a wider coverage for your vehicle and better protection.
A third-party cover provides protection only against damages to the third-party’s property, vehicle, or injuries to them. It does not cover damages to your own vehicle. One of the significant benefits of this type of policy is that it has an affordable premium.
A comprehensive bike insurance policy covers third-party liabilities as well as damages to your own vehicle. Although the premium for a comprehensive cover is higher than a third-party policy, you can benefit from the wider coverage it offers. Also, if you have a comprehensive policy, you can purchase add-ons to get additional protection.
Inclusions and exclusions of bike insurance
When you purchase a bike insurance policy, you must know about its inclusions and exclusions, as the same dictate the coverage you get. The inclusion and exclusions vary based on the type of plan you purchase.
• If you have third-party insurance, the insurance company will cover the cost of treatment for the bodily injuries caused to the third party in an accident.
• The insurer is liable to pay for the repairs of the third-party’s vehicle and property.
• If you have comprehensive bike insurance, your policy will cover damages to both the third-party and your car and bodily injuries.
• In the event of your unfortunate death or disability due to an accident, the insurer will provide a death benefit to your family members.
Generally, insurance companies do not provide coverage under the following situations:
• Accident occurred due to the mechanical breakdown of the parts
• If the rider is found guilty of driving under the influence of drug, alcohol or any other intoxicating substance
• Damages caused to the vehicle if the rider was underaged or guilty of driving without a valid licence
• Accident caused due to wear and tear of the bike
• Accidents caused due to tyre burst or damage to the tubes
• If you are found guilty of using your bike for commercial purposes or any other illegal activities
Buying bike insurance?
You can purchase a bike insurance plan directly from the insurance company, or approach an agent to help you get the best policy to suit your needs. You can also consider buying a policy online. The online process is much easier, and involves minimal paperwork.
Whether you are buying a policy online or offline, it is paramount that you compare the policies offered by different insurers in terms of premium, features, benefits, coverage offered, exclusions, etc. You can use the aggregator sites for comparison and make an informed choice.
Today, you can find plenty of bike insurance plans offered by reputed companies at affordable prices. With a bike insurance cover, you can have the peace of mind knowing that you have protection against various risks.
Disclaimer: This content has been distributed by HDFC ERGO. No HT Group journalist was involved in the creation of this content.