Types of Bike Insurance

Indian traffic laws mandate all vehicles to hold insurance to drive legally on the road. Insurance is essential to protect your vehicle against any financial losses occurring in the event of an accident. The compensation you may get is dependent on the type of insurance plan you have opted for your vehicle. Different insurance companies have different insurance covers to suit the diverse needs of people. However, there are three basic insurance plans that a rider can choose for their vehicle. This article will shed light on what are the types of two wheeler insurance, and which policy will be the most suitable for you. So let us go ahead and explore each insurance type in-depth.

What is Bike Insurance?

Bike insurance, also known as two-wheeler insurance or motorcycle insurance, is a type of financial protection that provides coverage for damages or losses incurred by your bike due to various unforeseen events. These events may include accidents, theft, natural disasters, or third-party liabilities. Essentially, bike insurance offers financial security and peace of mind to bike owners by safeguarding them against unexpected expenses arising from unfortunate incidents involving their vehicles.

Why Should You Get Insurance for Your Bike?

As we mentioned, getting insurance is not a choice but essentiality to drive legally in India. However, if it wouldn’t have been a compulsion, we would have still recommended you to get one as there are several advantages of owning insurance. Let us discover some of the benefits that an insurance cover offers:

Lowers Financial Stress

In case your vehicle gets stolen or goes through an event of an accident, insurance helps to cover the costs of damages. Vehicle repairments can cost a fortune, and having valid insurance can surely save you a huge amount of money.

Provides Personal Accidental Coverage

Insurance not only pays for the damages that occurred to your vehicle but offers benefits up to Rs 15 lakh if you get permanently disabled due to the accident. Moreover, if unfortunately the accident leads to your demise, your family recieves the sum assured by the insurance company.

Offers Legal Protection

Penalties for offending traffic laws in India are exceedingly expensive. If you do not have valid insurance for your bike, you may have to pay hefty fines. So having insurance for your vehicle at all times will ensure you stay away from paying such penalties.

Protection Against Third-Party Liabilities

Bike insurance also provides coverage for third-party liabilities, including bodily injury or property damage caused to others by the insured bike. This coverage is crucial for protecting bike owners from legal liabilities and financial obligations.

Key Features And Benefits Of Bike Insurance

Bike insurance offers several key features and benefits:

1. Coverage Options: Bike insurance policies offer various coverage options, including third-party liability, own damage, theft, and personal accident cover. Policyholders can choose the coverage that best suits their needs and budget.
2. Legal Compliance: Bike insurance policies help bike owners comply with legal requirements by providing mandatory coverage for third-party liabilities. This ensures that bike owners can ride their bikes on public roads without facing legal consequences.
3. Add-On Covers: Many bike insurance policies offer add-on covers that provide additional protection for specific risks or enhance the basic coverage. These add-ons may include zero depreciation cover, roadside assistance, engine protection, and accessories cover.

Types of Two Wheeler Insurance

1. Third-Party Liability Insurance

This is the most basic type of two-wheeler insurance and is legally required in many places. It covers damages or injuries caused to third parties in an accident involving your bike. However, it does not cover damages to your own bike or injuries sustained by you.

2. Comprehensive Insurance

Comprehensive insurance offers more extensive coverage, including both third-party liability and protection for your own bike. It covers damages to your bike due to accidents, theft, natural calamities, and man-made events such as riots or vandalism.

3. Zero Depreciation Insurance

A specialized form of comprehensive insurance, Zero Depreciation Insurance ensures that the insurance payout is not reduced by depreciation on parts. It covers full repair or replacement costs without factoring in depreciation, offering more protection, particularly for new bikes.

4. Own Damage (OD) Insurance

This insurance covers damage to your own bike in the event of an accident, theft, or other incidents. It is often bought in conjunction with third-party liability insurance to enhance the overall coverage.

5. Package Insurance

A package policy combines both third-party liability and own damage (OD) coverage into a single policy. It offers a well-rounded option, providing broader protection at a relatively lower premium compared to purchasing two separate policies.

Add-On Covers For Bike Insurance Policy

1. Zero Depreciation Cover: Ensures no depreciation is deducted on parts, providing full claim reimbursement for repairs and replacements.
2. Personal Accident Cover for Pillion Rider: Extends accident coverage to the pillion rider, covering injuries or death.
3. Engine and Gearbox Protection: Covers damage to the engine and gearbox due to water flooding or other issues.
4. Roadside Assistance: Offers 24/7 support for emergencies like breakdowns, towing, or fuel delivery.
5. Return to Invoice Cover: Reimburses the full invoice value of the bike in case of theft or total loss.
6. Consumables Cover: Covers items like brake fluids, oils, and other consumables not included in a standard policy.

Differences Between the Types of Bike Insurance Coverage

Type of Insurance	Coverage	Includes Third-Party Liability	Includes Own Damage Coverage	Benefits	Limitations
Third-Party Liability Insurance	Covers damage to third-party property and injury/death of third parties.	Yes	No	Legally required, budget-friendly option.	Does not cover damage to own bike or personal injuries.
Comprehensive Insurance	Covers third-party liabilities, own bike damage, theft, fire, natural and man-made disasters.	Yes	Yes	Extensive coverage, good for overall protection.	Higher premium compared to third-party insurance.
Zero Depreciation Insurance	Covers third-party liability and own bike damage without considering depreciation.	Yes	Yes	Full coverage without depreciation, ideal for new bikes.	Higher premiums, may not be available after a certain age of the bike.
Own Damage (OD) Insurance	Covers damage to your own bike due to accidents, theft, or disasters.	No	Yes	Provides coverage for your own bike.	Does not cover third-party liabilities.
Package Insurance	Combines third-party liability and own damage coverage in a single policy.	Yes	Yes	Balanced coverage, cost-effective option.	May not offer the same level of protection as comprehensive policies for all scenarios.

Inclusions in Two-Wheeler Insurance

1. Third-Party Liability: Covers damages caused to third-party property or injuries/death of a third party in an accident caused by your bike.
2. Own Damage: Covers the repair or replacement costs of your own bike in case of accidents, natural calamities, or vandalism.
3. Theft: Protection against the theft of your bike, including expenses related to recovering or replacing the stolen vehicle.
4. Fire Damage: Covers damages caused by fire, whether accidental or natural, that affects your bike.
5. Natural Calamities: Protection against damages caused by natural disasters like floods, earthquakes, storms, etc.
6. Man-Made Calamities: Coverage against damages caused by riots, terrorism, or vandalism.
7. Personal Accident Cover: Provides coverage for injuries or death of the rider due to an accident, either on or off-road.
8. Zero Depreciation (if opted): Covers repair or replacement of parts without depreciation, ensuring full value is paid for repairs or replacements.
9. Third-Party Property Damage: Covers damage caused by your bike to other people’s property.

Exclusions in Two-Wheeler Insurance

1. Wear and Tear: Damages caused by regular wear and tear or aging of bike parts are not covered under the policy.
2. Riding Without a License: Accidents that occur while the rider does not have a valid driving license or is under the influence of alcohol or drugs.
3. Racing or Speeding: Any damages caused during unauthorized races or when the bike is being used for illegal purposes.
4. Electrical or Mechanical Failures: Breakdowns due to mechanical or electrical failures are not covered under standard insurance policies.
5. Illegal Use: Accidents or damages occurring when the bike is used for illegal activities or purposes.
6. Self-Inflicted Damages: Damages resulting from self-inflicted actions or intentional harm to the vehicle are excluded.
7. Losses Due to War or Nuclear Radiation: Damages caused by war, nuclear risks, or related incidents are excluded from coverage.
8. Depreciation of Parts: The cost of replacement of bike parts will be calculated considering depreciation, unless a zero-depreciation cover is included.
9. Bikes Used for Commercial Purposes: If the bike is used for commercial purposes like delivery, it may not be covered unless specifically mentioned in the policy.
10. Unlisted Riders: If someone who is not mentioned in the policy as an additional rider is operating the bike, it may void the claim.

How Can I Purchase Bike Insurance?

Purchasing bike insurance is a simple process:

1. Visit the Bajaj Allianz General Insurance Company’s website.
2. Fill in the necessary details about your bike and other required information.
3. Select the insurance plan that fits your needs.
4. You will then receive a quote based on the policy you choose.
5. Opt for a comprehensive Bajaj insurance policy and tailor it with your preferred add-ons.
6. Complete the purchase by paying through the online payment gateway on the website.

Why Having the Right Type of Insurance is Crucial for Bike Owners

Having the right type of insurance from various types of motorbike insurance is crucial for bike owners for several reasons:

Customised Coverage

The right type of insurance allows bike owners to tailor their coverage to suit their specific needs and requirements. Whether they need basic third-party liability coverage or comprehensive protection against various risks, having the right insurance ensures that they are adequately covered.

Financial Protection

Different types of insurance policies offer varying levels of financial protection against accidents, theft, vandalism, and other risks. By choosing the right type of insurance, bike owners can ensure that they have sufficient coverage to handle any unforeseen expenses or liabilities that may arise.

Ways to Reduce Your Bike Insurance Premium

Reducing bike insurance premiums is possible through several strategies:

Choose a Higher Deductible

Opting for a higher deductible can lower your insurance premium. A deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in. By choosing a higher deductible, you can reduce your premium since you are taking on more financial responsibility in the event of a claim.

Maintain a Clean Driving Record

Insurers often offer discounts to policyholders with a clean driving record. Avoiding accidents, traffic violations, and claims can help you qualify for lower insurance premiums over time.

Remove unnecessary add-ons

Removing extra add-ons when you don't need them can reduce the bike insurance quote at renewal.

Benefits of Purchasing Two-Wheeler Insurance Online

Purchasing two-wheeler insurance online offers several benefits:

Convenience

Buying insurance online is convenient and hassle-free. Policyholders can compare different plans, calculate premiums, and purchase policies from the comfort of their homes or offices, without the need to visit insurance offices or meet with agents.

Instant Policy Issuance

Online insurance platforms offer instant policy issuance, allowing policyholders to get coverage immediately after purchasing a policy. There is no waiting period or paperwork involved, making the process quick and efficient.

Lower Premiums

Insurance companies often offer lower premiums for policies purchased online since it reduces administrative costs and overhead expenses. Policyholders can enjoy savings on their insurance premiums by purchasing policies through online channels.

Easy Renewals and Management

Online insurance platforms provide easy access to policy renewals, endorsements, and other policy-related services.

How To Choose The Right Bike Insurance Policy?

Choosing the right bike insurance policy from types of Bike Insurance involves considering several factors:

Coverage Needs

Assess your coverage needs based on factors such as the age and condition of your bike, your riding habits, and your budget. Decide whether you need basic third-party liability coverage or comprehensive protection against various risks.

Policy Features

Consider the features and benefits offered by different insurance policies, such as coverage options, add-on covers, and discounts. Choose a policy that offers the right balance of coverage, benefits, and affordability to meet your needs.

Types of Two Wheeler Insurance

Coming back to the question, what are the types of bike insurance in India? Let us take a look at it.

Third-Party Insurance

This is the most basic insurance type, which is compulsory for all vehicles. Third party bike insurance covers the damages occurred to the third-party in an accident. The compensation amount under this policy is limited to INR 15 lakh. However, this policy does not provide any coverage for the cost of damages to your own vehicle. It is most preferred by people who have very old vehicles. Benefits includes:-

1. Cost of damages of third-party vehicles.
2. Compensation for any personal damage to third-party vehicle’s owner.

Exclusions

1. No coverage for damage to your vehicle.
2. No compensation for your own personal damages.

Comprehensive Insurance

The most advised insurance type is comprehensive insurance for two wheelers, especially if your bike is new. This is a complete insurance policy that covers damage costs of your own as well as the third-party vehicle.   In addition, you can also include several add-on covers in this policy such as zero depreciation cover, roadside assistance, etc. by paying extra premium. You can get this two wheeler insurance online from Bajaj Finance. Benefits includes:-

1. Coverage for damage to your own vehicle.
2. Costs of damages of third-party vehicles.
3. Additional discounts and add-on covers.

Exclusions

1. No coverage of regular wear and tear of the vehicle.
2. The policy can not be availed if the driver does not hold a valid driving license or is under the influence of drugs or alcohol.

Standalone Own-Damage Insurance

Any person can avail this insurance policy for their vehicle. It covers the losses and damages of your vehicle. It protects your vehicle against:

1. Natural calamities such as earthquakes, floods, lightning, fire, etc.
2. An accident caused by any external means.
3. Theft, burglary, riots, terrorist activity, etc.

Conclusion

Now that you are well-acquainted with what are the types of two wheeler insurance available in the market. You can decide which policy suits you the best depending upon your requirements and make an efficient decision for yourself.

FAQs

Can I buy any of these two wheeler insurance online?

Yes, all these policies can be bought online from various insurance companies.

What does IDV mean in my bike’s insurance?

Insured Declared Value or IDV is the maximum total loss payout that the insurance company will pay for your vehicle in case of any claims made by you.

What is zero depreciation in two wheeler insurance?

Over time, your bike loses its market value due to regular wear and tear and its growing age. A zero depreciation bike insurance policy, which is a compulsory deduction, ensures that your bike’s value does not depreciate with time and you get full benefits on your insurance policy.

What to do if a two-wheeler insurance policy expires?

If your two-wheeler insurance policy expires, you should renew it as soon as possible to avoid riding uninsured.

Can I purchase two bike insurance policies for the same vehicle?

No, you cannot purchase two bike insurance policies for the same vehicle.

What factors affect the cost of bike insurance?

A: Several factors affect the cost of bike insurance, including the bike's make and model, age, location, usage, rider's age and experience, claims history, and chosen coverage options.

Is bike insurance mandatory?

Yes, bike insurance is mandatory. At least third-party liability insurance is required by law to cover damages caused to third parties or their property in case of an accident.

Can bike insurance be transferred to someone else? Like a new owner.

Yes, bike insurance can be transferred to a new owner. During the transfer of ownership, the insurance policy can be transferred to the new owner's name after submitting the required documents and completing the necessary formalities with the insurance company.

Does bike insurance provide cover for scratches, dents, or other outer damage?

A: Comprehensive bike insurance policies typically provide coverage for damages due to accidents, theft, vandalism, natural disasters, and third-party liabilities. However, coverage for scratches, dents, or other outer damage, which constitutes normal wear and tear, is not covered.

Can we skip bike insurance?

No, it is illegal to ride a bike on Indian roads without at least third-party insurance as per the Motor Vehicles Act. Third-party insurance covers damages caused to others in case of an accident.

Can we take a bike without insurance?

No, a bike must have at least third-party insurance before it is legally allowed on the road in India. Failing to have insurance can result in penalties or fines.

Can I claim bike insurance twice?

You can only claim bike insurance once for the same damage. However, if you have separate claims for different incidents (e.g., accidents or theft), you may be able to claim each one individually, subject to policy terms. *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.