Just bought your first bike? Congratulations! As exciting as it feels to hop on your brand-new motorcycle, don't let that euphoria make you neglect bike insurance.
Why Do You Need Bike Insurance?
Third-party bike insurance is legally mandatory in India as per The Motor Vehicles Act. You can be fined for riding without a valid insurance policy. Here are some key reasons why bike insurance is a must:
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- Provides coverage if you unfortunately meet with an accident. Your medical bills, including hospitalization costs, will be covered up to Rs.15 lakhs under the mandatory Personal Accident Cover that you can additionally opt for.
- In case you need to file a claim due to theft or damage to your bike, your finances will be protected as repair costs and replacement value (if total loss) will be covered under a Comprehensive policy.
- Suppose your bike causes damage to a third party's vehicle or property or injuries to a person. In that case, the liability aspect of your policy will cover compensation costs awarded by the court up to the limit you choose. This protects you from lawsuits.
- The reward for safe riding! Every claim-free year earns you a No Claim Bonus discount on your renewals. If you switch bikes, this discount can be easily transferred to your new bike's policy.
- What Are the Types of Bike Insurance Policies?
Broadly, there are three main types of two-wheeler insurance policies:
1. Third-Party Liability Insurance
This basic plan covers only legal liability towards third parties - bodily injury or property damage you may cause to others. There is no coverage for damage to your own bike.
2. Standalone Own Damage Insurance
Standalone Own Damage (OD) insurance is a type of bike policy that only covers damages or losses to your own two-wheeler. It does not include third-party liability protection. Key aspects covered under OD insurance are:
- Any accidental damage occurring due to a crash, collision, overturning, etc.
- Loss or damage triggered by natural disasters like floods, storms, and earthquakes.
- Man-made events like fire, theft, riots, strikes.
- Mechanical or electrical breakdown.
- Malicious acts or terrorism.
3. Comprehensive Insurance
A Comprehensive policy is the most extensive coverage you can opt for as it provides both third-party liability protection as well as own damage cover. This type of motor insurance safeguards your vehicle against financial losses in case it suffers damage due to:
- Accidents
- Theft
- Fire
- Natural disasters like floods or earthquakes
- Man-made calamities such as riots
- Any other eventuality leading to loss or damage to your two-wheeler
Additionally, Comprehensive insurance covers injury or property damage caused by your bike to third parties - either fully or up to the liability limit chosen by you.
What Key Factors Decide Your Premiums?
The premium or price you pay for your policy depends on these key factors:
Make and model: Premiums are higher for expensive bikes or sports bikes as the value of the vehicle is on the higher side.
Cubic capacity: Bikes above 150cc attract higher premiums as the risk is higher.
Geographical area: Premiums are decided based on the area you live and operate in. Metros have a higher theft risk, so premiums are higher.
Age of the vehicle: Old bikes have higher premiums as repair costs are higher.
No claim bonus: If you don't make a claim during the policy period, you get an NCB discount on renewals. It can go up to 50%.
Voluntary deductible: Opting for a deductible can lower your premiums. The deductible is the amount you pay out of pocket before the claim is covered.
How to Buy Your First Bike Insurance Policy?
Follow these steps for a smooth purchase experience:
1. Get quotes online from multiple insurers like ACKO. Compare features and pricing.
2. Fill the proposal form correctly with details like make, model, year of manufacture, etc. Incorrect details can result in claim rejection later.
3. Inform the insurer about any pre-existing damage to your bike to avoid issues later.
4. Opt for maximum permissible third-party liability and own damage cover. Don't try to save on this.
5. Read policy documents carefully to check what is covered and what is excluded. Ask questions if you have any doubts.
6. Pay premiums on time for continuity of coverage and no claim bonus benefits.
Buying adequate bike insurance will give you financial security as you zip around on your new ride. Follow this guide and buy the right two-wheeler policy without any hassles. Ride safe!
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