Bike Insurance – Types & Benefits

byYashi DasLast Updated: August 17, 2022
What is Bike Insurance

Bike insurance or two-wheeler insurance is a policy to safeguard your bike, scooter, or any two-wheeler motor vehicle. It is a deal between the insurance providers and policyholders where the latter pays monthly or annual premiums so that they can claim the large lump sum of insurance amount when met with a mishap.

What is Bike Insurance or Two-wheeler Insurance?

Bike insurance or two-wheeler insurance acts as a safety for the vehicles. It is also mandatory by law. Under Motor Vehicles Act, 1988, every two-wheeler owner must have at least third-party insurance for the motorcycle or other two-wheelers. It is a contract between the insurer and the insured which lays down the terms and conditions for the policy. The period for which the bike insurance or two-wheeler insurance shall be active, the insurance amount, the premiums, and the voluntary deductible are all pre-decided.

When the insured makes a claim, the surveyor(s) from the insurance dealers pay a visit. They look at the damage, estimate the cost, and approve the insurance money accordingly. The claim amount cannot exceed the insurance coverage determined at the time of buying the policy. There are also certain exclusions and cases where the insurance cover will not be applicable such as:

  • Driving under influence of drugs/alcohol
  • Underage drivers/unlicensed drivers
  • Damage due to natural calamities, war, nuclear attack

Types of Bike Insurance Policies

The categorization of Bike Insurance Policies is on the basis of coverage. They are as follows:

  1. Third-Party Bike Insurance Policy

The third-party bike insurance policy is also known as third-party liability. It is a mandatory policy, the most basic of all bike insurance covers, and with lower premiums than others. The third-party bike insurance policy covers against third-party liabilities, be it bodily injuries/death or property damage incurred by a third party.

  1. Own Damage (OD) Bike Insurance Policy

Own Damage (OD) bike insurance policy, also known as a Standalone Own Damage bike insurance plan provides insurance cover only for damages incurred by the policyholders themselves. It covers death, body injuries, and damage of the insured’s bike in a mishap. Thus, it does not provide coverage for third-party liabilities. One will have to purchase a third-party bike insurance policy if they purchase standalone own-damage cover.

  1. Comprehensive Bike Insurance Policy

Bike owners go for a comprehensive bike insurance policy or two-wheeler policy so that they do not have to buy separate insurance covers for third-party and own damage. It includes both the coverages and hence, is a comprehensive bike insurance policy.

Add-on Coverages in Bike Insurance Policy

Apart from the above mentioned three main policies, there are add-on coverages such as follows:

  • Zero Depreciation Cover that covers the depreciation value
  • Roadside Assistance Cover provides the policyholder with assistance while on road. The above-mentioned policies don’t cover the mechanical breakdown of the car. This bike insurance policy organizes for a mechanic to go to your location and take a look at your car if needed when the bike breaks down. It also provides towing services, taxi service, and they can even make a booking for you at the nearest hotel
  • Although the major three types of bike insurance policies cover the main rider, it doesn’t cover the pillion rider. Hence, Passenger Cover compensates the pillion rider
  • Various single-use two-wheeler parts or components such as nuts, bolts, coolant, etc. need replacement. Consumables Cover is an add-on in a two-wheeler insurance policy that takes care of these expenses
  • Engine Protect Cover in two-wheeler insurance policy protects the damage to the engine of the vehicle
  • Helmet Cover is for the repair costs for helmet or get it replaced
  • You get a daily travel allowance from the insurer under Daily Allowance Benefit

Similarly, there can be miscellaneous additional covers in a bike insurance policy and two-wheeler policy depending on the insurance providers who may come up with customized or special policies as well.

Why Get Bike Insurance or Two-wheeler Insurance Policy – Benefits

The major benefit of any kind of insurance is that it protects from unforeseen situations and damages due to it. It relieves the financial burden. Similarly, a bike insurance policy or two-wheeler insurance policy helps in:

  • Provides protection in case of an accident, collision, or theft of the bike or its parts. It takes care of the costs
  • Repair costs can also be covered in case of damage to the two-wheeler
  • A bike insurance policy or two-wheeler insurance policy protects the rider as well in case of bodily injuries or death. The family receives compensation if the driver dies
  • There are add-on bike insurance policies that cover several other costs
  • You can claim NCB (No Claim Bonus) to avail of discounts in renewal policies
  • It is easy to get a bike insurance policy or two-wheeler insurance policy online as well as easy to renew it. Book a bike insurance policy on the Paytm app for a hassle-free experience

How to Apply Bike Insurance Policy Online with Paytm?

Follow the below steps to buy or renew bike insurance online with Paytm:

  • Go to ‘All Services’ and then scroll down to the ‘Insurance’ section
  • Among various insurance products, tap on the ‘Bike Insurance’
  • Add the bike number to get various bike insurance policy quotes. You can review the terms and conditions, coverage amount as well as the premium
  • Check if the bike has an existing policy. You can also see its tenure, expiry and buy an additional bike insurance policy
  • Paytm offers a wide range of options through several insurance providers of bike insurance policy and two-wheeler policy. You are free from unnecessary calls, no spam, and there is 24×7 claim support

Wrapping it up:

Having a bike insurance policy and two-wheeler policy reduces financial stress in times of accidents. Moreover, third-party liability benefits protect from damages caused by others and the no-fault of the drivers themselves. There are also multi-year bike insurance policies that safeguard you for more than one year and you can then renew the policy. NCB attracts riders to drive safely so that they can get premium discounts. It is advisable to go for a comprehensive bike insurance policy and two-wheeler policy rather than OD or third-party only.

Can NCB be transferred in a bike insurance policy or two-wheeler policy?
Yes, NCB can be transferred to your new bike insurance policy or two-wheeler policy. However, you cannot transfer your accumulated NCB to a new vehicle owner whenever the bike/motorcycle, scooter, or other two-wheelers are sold/purchased.
How do I know what should be the right insurance cover in a bike insurance policy or a two-wheeler policy?
  • The right insurance cover can be determined by Insured Declared Value (IDV) in bike insurance policy/two-wheeler policy or any vehicle policy. IDV is the market price minus the depreciation value of a bike or any vehicle
  • The insurance cover that is closest to the market value or IDV of the two-wheeler is the best bike insurance policy or two-wheeler policy
Is it necessary to buy a bike insurance policy or a two-wheeler policy?
You may skip OD policy or comprehensive but third-party is necessary and mandatory by law.

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