Basic Guide For Motorbike Insurance

Insurance comes with the promise of providing you financial aid in the event of any mishap. There are different types of insurance available in the market including insurance for your motorbike. Purchasing bike insurance gives you a financial cushion when you meet with an accident while riding a two-wheeler. People usually don't realise the value of an insurance policy unless they meet with an accident and insurance gives them financial assistance. 

In India, two-wheeler insurance is a mandatory requirement for all two-wheeler owners. Riding a bike without active insurance is a legal offence, and it can attract a hefty fine. Apart from the legal obligation, it is vital to have an insurance cover from the safety viewpoint. Bike insurance provides you with the financial protection against the damages that you may incur in the event of an accident.

If you are buying bike insurance for the first time, there are a few things and that you should know. These basic details will make your buying decision easy. 

What are the types of bike insurance policy in India?

In India, there are two types of bike insurance policy:

Third-party bike insurance –

This policy is the basic insurance policy and is mandatory for all vehicles plying on the road. It covers only the damages to the third-party including bodily injuries and damage to the property.

Comprehensive policy – 

A comprehensive policy covers both third party liability and damage to own two-wheeler because of natural or man-made calamities. Additionally, add-on covers make it more holistic and give your bike protection in every way you desire. However, there is a nominal fee on the add-on covers along with the comprehensive policy premium. 

How is the premium for bike insurance calculated?

When it comes to deciding the premium of your vehicle, the insurers take several factors into account. Some of the important factors that determine the premium charges include:

  • Cubic Capacity (CC) of the vehicle
  • The coverage you need for the bike
  • The accessories you have installed. If you have any additional security accessories like disc brakes or anti-theft system in your bike, you can expect the insurer to reduce your premium.

Generally, high-end sports bikes have a higher premium than the usual bikes. Also, if you have installed safety devices like an anti-theft lock, you can expect a lower premium rate for your bike. 

What is an IDV in bike insurance?

Insured Declared Value or IDV is the declared value of the vehicle. When you declare the value of the bike, it remains constant during the policy period.s

What is No Claim Bonus, and how does it affect the insurance policy?

No Claim Bonus or NCB is a discount that is offered by the insurance company to insured in case he or she doesn't make any claim during the policy period. The reward offered is in terms of a discount on the premium amount at the time of renewal. The discount can range from 20% to 50%. If you don't make any claim for five consecutive years, you can get you a No Claim Bonus of up to 50%.

Add a bit about Buying process (online & offline) of Two Wheeler Insurance.

Knowing the things discussed above can help you make an informed insurance buying decision.