Standalone Own Damage Bike Insurance: All Need to Know

Bikes are a prized possession for all buyers—be it a bike enthusiast or one who finds pure utility in his bike. Considering the different benefits on offer, not having a bike can make it cumbersome to travel, especially using the public transport. Moreover, traffic snarls in the urban jungles can extend for long hours and that’s where a nimble and agile two-wheeler can help you save lot of your time. So, any damage to your bike can not just mean inconvenience, but also a hole in your wallet to get it fixed. Thus, it is best to get yourself and insurance cover that covers the cost of such repairs. The Motor Vehicles Act of 1988 makes it mandatory to have a bike insurance plan for all two-wheelers registered in the country. However, only a Third Party Insurance Cover is the minimum requirement. Such third-party policies although ensure legal compliance by safeguarding against injuries and damages to another person, they lack when it comes to compensating for the damages to your bike in case of an accident. The other person or their vehicle isn’t the only thing that is damaged in an accident, it is your vehicle too. Hence, it is best to buy a two wheeler insurance that offers compensation for the repair costs of your bike. This way, you can ensure protection from damages and collisions occurring to your bike too.

What Does the New Regulations State?

At present, all new vehicles are required to buy vehicle insurance without which the registration of such vehicle is not possible. Hence, you can either choose from a five-year third-party cover or five-year third-party plan with one year of own-damage cover when buying a new bike. So, if you are someone who only has a five-year third-party cover for their bike, you can purchase a standalone own-damage (OD) plan. Alternatively, if you have a five-year third-party plan with one year of own-damage cover, you can buy a standalone own-damage policy each year from the second year till the end of fifth year. You can avail both third-party and OD variants of vehicle insurance online.

What is Own-Damage Cover in a Bike Insurance?

Own-Damage Cover in bike insurance refers to a type of coverage that protects the policyholder’s bike in case it is damaged due to accidents, natural disasters, fire, theft, or vandalism. This cover is specifically designed to compensate for the repair or replacement costs of the insured bike if it gets damaged, regardless of whether the accident was your fault or not.

How Does Own-Damage Cover for Bike Insurance Online Works?

Own-Damage Cover for bike insurance online provides protection against damages to your bike from accidents, theft, fire, or natural calamities. You can purchase this coverage through an insurer's website by selecting the appropriate plan for your bike. Once the policy is active, you’re covered for repairs or replacements if your bike is damaged. In case of an incident, you can file a claim online, submitting necessary documents. Insurers often offer a cashless claim facility, where repair costs are settled directly with the garage. Online policies offer convenience, allowing easy management, renewals, and tracking of claims.

What are the Features of an Own-Damage Two Wheeler Insurance?

1. Accident-Related Damage Coverage

Provides financial protection if your bike is damaged in an accident, whether it’s your fault or not. It covers repairs or the replacement of damaged parts.

2. Natural Calamities Coverage

Protects your bike against damages caused by natural disasters such as floods, storms, earthquakes, or landslides, ensuring that you're covered during extreme weather events.

3. Fire and Explosion Protection

Covers damages to your bike caused by fire, whether accidental or due to external factors like short circuits or fuel leakage, ensuring the repair or replacement costs are handled.

4. Theft and Vandalism Coverage

In case your bike is stolen or damaged due to acts of vandalism or malicious mischief, this feature compensates you with either the bike's market value or a replacement vehicle.

5. Repair and Replacement Costs

If your bike is damaged, the insurance covers the cost of repairing parts or replacing them if necessary. It ensures that you don't have to pay for repairs out-of-pocket.

6. Cashless Claim Facility

Many insurers offer a cashless claim service at network garages, allowing you to get your bike repaired without paying upfront, as the insurance company directly settles the repair costs.

7. No-Claim Bonus (NCB)

If you don’t make any claims throughout the policy year, you can earn a No-Claim Bonus, which offers a discount on the premium for the next year, lowering your insurance cost.

8. Personal Accident Coverage (Optional Add-on)

This add-on provides compensation in case you suffer an accident while riding the bike, offering medical or financial support in case of injury or death.

9. Covers Non-Collision Incidents

Unlike third-party insurance, which only covers collisions, this insurance also covers damages that occur without a collision, like falls due to slippery roads or mechanical failures.

10. Customizable Add-ons

You can enhance the coverage with add-ons like engine protection, zero depreciation cover, or roadside assistance, offering additional peace of mind and protection in case of breakdowns or accidents.

11. Preserves Bike’s Value

Ensures that your bike’s value is maintained by covering the repair or replacement costs in case of an accident or damage, so you don’t suffer a financial loss from unforeseen events.

Why is Own Damage Cover Useful?

Third-party bike insurance, which is mandatory in India, only covers liabilities arising from injuries or damage caused to a third party. An own damage two-wheeler insurance bridges this gap by providing financial security for your own bike. It safeguards you from significant financial burdens in case of repairs or replacements due to accidents, theft, or other insured perils.

What Are the Advantages of Buying a Standalone Own Damage Insurance for a Bike?

Unlike a comprehensive plan, standalone OD covers can be purchased in addition to third-party insurance policies. Such standalone plan includes the following:

1. Coverage for repairs to your bike due to a collision or accident.
2. Coverage for repairs due to natural disaster like floods, typhoons, hurricanes, earthquakes, etc.
3. Coverage for man-made perils like riots, vandalism, etc.
4. Coverage for theft of your bike.

In addition to the above, when you buy a standalone OD cover, you can also enjoy the benefits of no-claim bonus (NCB) wherein the premiums for such own-damage components are lowered due to the NCB benefits.*Standard T&C Apply

Who Should Consider Standalone Own Damage Two Wheeler Insurance?

Here are the major considerations around who should take the two-wheeler own damage insurance:

Standalone Damage Insurance 

Ideal for anyone who owns a two-wheeler, especially an expensive bike. It offers additional protection, guaranteeing your bike is well-protected beyond the standard third-party coverage.

Coverage Gaps 

If your third-party policy has expired or does not provide appropriate protection, your own damage two-wheeler insurance can address those gaps by providing comprehensive coverage for a wide range of potential dangers.

High-Risk Areas 

Do you live in a region prone to natural catastrophes or theft? Standalone damage insurance provides critical security by safeguarding your bike from unanticipated incidents and potential losses.

Comprehensive Protection 

This insurance covers your bike against a variety of threats, protecting your investment and eliminating financial concerns about damage or theft.

Peace of mind: 

Knowing that your bike is completely safe helps you to ride with confidence and enjoy your two-wheeler without always worrying about possible dangers.

Inclusions in Own-Damage Cover for Bikes

1. Accidental Damage: Covers damages caused to your bike in the event of an accident, regardless of fault.
2. Fire and Explosion: Provides protection against fire, explosion, or self-ignition damage to your bike.
3. Natural Calamities: Covers damages caused by floods, storms, earthquakes, landslides, or other natural disasters.
4. Theft: Offers compensation if your bike is stolen, either in part or fully.
5. Vandalism: Protects against damages caused by malicious acts like vandalism or sabotage.
6. Damage During Transit: Covers damage to your bike while being transported by road, rail, air, or sea.
7. Third-Party Liability (Add-on): In some policies, third-party damage caused by your bike may be included.
8. Repair or Replacement Costs: Covers the cost of repairing or replacing parts that are damaged or broken due to the covered incidents.
9. Cashless Claim Facility: Provides the convenience of cashless repairs at networked garages for damages covered under the policy.

Exclusions in Own-Damage Cover for Bikes

1. Normal Wear and Tear: Damage due to regular use, such as tire wear or engine deterioration, is not covered.
2. Mechanical and Electrical Failures: Damages resulting from mechanical or electrical breakdowns are excluded unless the damage is due to an accident or covered event.
3. Intentional Damage: Any damage caused by the rider’s intentional actions or negligence is not covered.
4. Riding Under the Influence: Accidents occurring while riding under the influence of alcohol, drugs, or any intoxicants are excluded.
5. Riding Without a License: If the rider does not have a valid driving license, the policy will not cover damages.
6. Illegal Activities: Damages that occur while the bike is used for illegal activities are not covered.
7. Use in Unapproved Areas: If the bike is used for off-road activities or in non-permitted areas, damages may not be covered.
8. Racing and Speed Tests: Accidents occurring during races, speed tests, or stunts are excluded.
9. Depreciation: The policy does not cover losses due to depreciation of parts over time.
10. Wear and Tear of Tyres: Unless caused by an accident, tire wear is not covered under the policy.

Add-ons with Standalone Own Damage Two-wheeler Insurance

Many insurers offer add-on covers to customize your standalone own damage two-wheeler policy. These can include:

1. Engine and Gearbox Protection: Covers repair or replacement costs for these critical components.
2. Depreciation Reimbursement: Reduces the impact of depreciation on your claim payout.
3. Personal Accident Cover: Provides financial assistance in case of injuries sustained in an accident.
4. Accessories Cover: Extends coverage to bike accessories.

How is the Standalone Own Damage Premium Calculated?

The Standalone Own Damage (OD) premium for bike insurance is calculated based on several factors that determine the level of risk and the coverage required. Here’s how the premium is generally calculated:

1. Insured Declared Value (IDV): The IDV is the market value of your bike at the time of purchase. A higher IDV leads to a higher premium, as the insurance covers more value in case of total loss.
2. Engine Capacity: Bikes with larger engine capacities (cc) typically have higher premiums because they are considered higher risk and more expensive to repair.
3. Rider's Age and Experience: Younger or less experienced riders may be charged a higher premium due to a higher likelihood of accidents. Conversely, experienced riders may pay lower premiums.
4. Type of Bike: Premiums can vary based on the type of bike (sports bike, commuter bike, luxury bike, etc.), as the repair and replacement costs can differ significantly.
5. Geographical Location: The area where you reside plays a role in premium calculation. Areas with higher accident rates or greater vulnerability to natural disasters may result in a higher premium.
6. Add-ons: If you opt for additional coverages such as zero depreciation cover, engine protection, or roadside assistance, the premium will increase accordingly.
7. No-Claim Bonus (NCB): If you haven't made any claims during the previous policy year, you may qualify for a No-Claim Bonus, which provides a discount on the premium for your new policy.
8. Claim History: A history of previous claims can increase your premium, as it indicates a higher risk profile.
9. Bike’s Age: Older bikes generally attract lower premiums, but they may have a lower IDV, which reduces the coverage value.

Is Standalone Own Damage Bike Insurance Same as a Comprehensive Policy?

No, standalone plans are not the same as comprehensive plans. Comprehensive policies include third-party component along with own-damage cover and personal accident cover as a part of its scope whereas a standalone cover does not. Finally, remember that a standalone policy can be bought from a different insurance company than the one you have bought your third-party plan. To estimate the impact of the different add-ons in your standalone cover, you can make use of a two wheeler insurance premium calculator.

How to Buy Own Damage Bike Insurance Policy?

1. Research and Compare Insurers: Start by researching various insurance providers online. Compare different plans, premiums, coverage, and add-ons to find the best one that suits your needs.
2. Choose the Type of Insurance: Decide whether you want to buy a comprehensive bike insurance policy (which includes Own-Damage Cover) or opt for a third-party insurance policy with additional Own-Damage coverage as an add-on.
3. Fill in Bike Details: Provide your bike's details such as make, model, year of manufacture, and engine capacity. This helps the insurer calculate the premium accurately.
4. Select Add-ons (Optional): Add extra coverage like engine protection, zero depreciation cover, or roadside assistance, based on your requirements.
5. Provide Personal Information: Enter personal details, including your contact information and driving license number, to process the policy.
6. Make the Payment: Once you review the policy and premium amount, proceed to make the payment online through secure payment methods like credit/debit cards, net banking, or UPI.
7. Receive Policy Document: After payment, you will receive the insurance policy document via email or through the insurer's portal, which includes all the terms, conditions, and coverage details.
8. Policy Renewal: Don’t forget to set reminders for renewing the policy before it expires to continue enjoying the benefits of coverage.

How to Claim Standalone Own Damage Bike Insurance?

In case of an accident, theft, or any other insured event, here's how you can claim a standalone own damage two-wheeler policy:

1. Inform the police and file an FIR (First Information Report).
2. Notify your insurance company immediately.
3. Submit the required documents to the insurer.
4. Cooperate with the insurer's surveyor during the damage assessment.
5. Once the claim is approved, repairs will be done at a network garage or reimbursement will be provided.

List of Documents Needed when Making a Bike Insurance Claim

Here is the list of documents required for making a bike insurance claim:

1. Valid and active standalone own damage two-wheeler insurance policy document.
2. FIR in case of theft or accident.
3. Registration Certificate (RC) of your bike.
4. Photographs as evidence of the damage.
5. Additional documents as specified by your insurer.

Also Read: Own Damage v/s Third Party Cover Under Bike Insurance

FAQs

What is Standalone Own Damage Bike Insurance? 

Standalone own damage bike insurance is a separate policy that protects your two-wheeler from financial losses due to accidents, theft, fire, natural disasters, and other insured perils.

Who should consider getting standalone damage bike insurance? 

Anyone who owns a valuable bike or wants additional coverage beyond third-party liability should consider standalone own damage insurance.

What are the key benefits of standalone own damage bike insurance? 

Protect your bike financially in case of accidents, theft, or other insured events. Offers peace of mind knowing your bike is covered. Can be customized with add-on covers for broader protection.

How is the premium for standalone own damage bike insurance calculated? 

The premium for standalone damage insurance is primarily determined by your bike's Insured Declared Value (IDV), age, and location. Additionally, your driving history and chosen add-on covers can influence the premium amount.

Can I switch from a comprehensive policy to standalone own damage bike insurance? 

Yes, you can switch from a comprehensive policy (which includes both third-party and own damage cover) to standalone own damage insurance if your existing third-party policy is still valid. However, consult your insurer for specific details and ensure you have uninterrupted third-party liability coverage.

What is OD and TP in bike insurance?

OD (Own Damage) covers bike damage due to accidents, theft, or natural disasters, while TP (Third-Party) covers damages or injuries caused to a third party.

How many times can I claim own damage insurance?

You can claim Own Damage insurance multiple times, but repeated claims may lead to higher premiums or loss of No-Claim Bonus (NCB).

Can we drive a vehicle without own damage insurance?

Yes, you can drive without Own Damage insurance, but Third-Party insurance is mandatory by law. OD cover is optional but provides financial protection for your bike.

What is not covered in own damage insurance?

Own Damage insurance does not cover normal wear and tear, mechanical breakdowns, racing accidents, driving under influence, or damage caused by illegal activities.

How much does own damage insurance cover?

Own Damage insurance covers repair or replacement costs up to the Insured Declared Value (IDV) of the bike, which is its market value at the time of the claim.

Does own damage cover theft?

Yes, Own Damage insurance covers bike theft, and the insurer compensates based on the IDV if the bike is stolen.

Which is better, own damage or comprehensive?

Comprehensive insurance is better as it covers both Own Damage and Third-Party liabilities, offering complete protection for your bike and legal coverage.

Is own damage insurance worth it?

Yes, Own Damage insurance is worth it, as it provides financial protection for repairs and replacement in case of accidents, theft, or natural calamities. *Standard T&C Apply *Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale. *Claims are subject to terms and conditions set forth under the motor insurance policy. The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.