What is Bike Insurance?

Bike insurance, often referred to as two-wheeler insurance, is a specialized insurance policy designed to provide comprehensive coverage against various types of damages that may occur to your two-wheeler, whether due to unforeseen accidents, natural disasters, human-induced incidents, fire hazards or even theft. In addition to protecting your own vehicle, motorcycle insurance policies also include essential, legally mandated coverage for third-party liabilities, which encompasses any damages or injuries inflicted on another person’s vehicle, or property or worse, any injuries or fatalities to third parties as a result of incidents involving your insured two-wheeler.

This type of insurance is not limited to motorcycles alone but extends to a wide range of vehicles, ensuring that scooters, mopeds and other similar two-wheelers have adequate protection. Therefore, purchasing two-wheeler insurance is crucial for safeguarding your interests while complying with legal obligations on the road.

Types of Bike Insurance Coverage

Bike insurance is known to render risk cover against several uncertainties, and accidents. So it is better to buy the right risk coverage for your personal or commercial two-wheeler. Bike/two-wheeler/motorcycle insurance plans can be categorized into three distinct types based on their coverage as outlined below:

Standalone Own Damage (OD) Bike Insurance Coverage

This offers protection exclusively for damages to the insured’s bike resulting from an accident. Importantly, it does not extend coverage for third-party liabilities. Therefore, if you opt for a standalone own-damage policy, you must also invest in a third-party cover to comply with the legal stipulations set forth by the Indian Motor Tariff of 2002.

Comprehensive Bike Insurance Cover

A comprehensive bike insurance policy addresses all the limitations of basic third-party coverage. Also referred to as a package bike insurance policy, it offers extensive protection for various damages incurred by the insured bike in case of an unfortunate incident. This means it includes coverage for both third-party liabilities and any damages sustained by the insured bike itself.

Third-Party Bike Insurance Cover

Often referred to as liability-only bike insurance, this plan is the most fundamental form of bike coverage available. It protects the policyholder solely against third-party liabilities, including bodily injuries or death of a third party, as well as damages caused to a third party. However, it is important to note that this insurance does not cover any damages sustained by the policyholder’s own bike.

What is the Difference Between Comprehensive and Third-Party Bike Insurance?

Insurance is known to protect against certain uncertainties but it too has a few exclusions. So it is necessary to have a good understanding of the same. Comprehensive bike insurance offers more protection for riders, covering both their damages and third-party liabilities, whereas third-party insurance meets legal needs but provides less coverage. Below is the comparisons between the two popular insurance coverage:

Feature	Comprehensive Bike Insurance	Third-Party Bike Insurance
Legal Requirement	Coverage is not mandatory and is available as an optional choice	This is a requirement set forth by the Motor Vehicles Act of 1988 in India
Coverage Scope	Comprehensive protection that encompasses theft, accidents and natural disasters	Restricted solely to damages or injuries inflicted upon third parties
Own Damage Cover	It offers protection against damages to your vehicle	It does not provide coverage for any damages to your own bicycle
Add-Ons Available	A variety of options are available, including zero depreciation coverage, roadside assistance and more	Exclusively focused on coverage for personal accidents
Premium Cost	Higher because of broad coverage and add-ons	It remains minimal since it only addresses fundamental liabilities
Claim Process	Administered by the insurance company as per the terms of the policy	Under the supervision of the Motor Accident Claims Tribunal
Recommended For	Bikes that are new or frequently used require thorough protection	Budget-conscious riders often opt for older bikes or models that are seldom used
Exclusions	Exclusions include wear and tear, mechanical breakdowns and violations of driving regulations	Excludes any damages to the insured bicycle as well as personal injuries sustained by the owner-driver

Benefits of Buying Bike Insurance

Keep in mind that Bike insurance in India provides benefits beyond legal compliance. So you should not avoid it. Here are some benefits of purchasing bike insurance cover for your two-wheelers.

Adherence to Legal Standards

Under the Motor Vehicles Act of 1988, possessing a third-party bike insurance policy is not just advisable but mandatory. Riding without valid insurance can result in significant penalties, including hefty fines or even imprisonment.

Shielding Against Third-Party Liabilities

Bike insurance offers crucial financial protection for damages inflicted on third parties in the event of an accident. This coverage encompasses both property damage and medical expenses incurred by the injured party.

Protection Against Personal Damages

A comprehensive bike insurance policy protects against damages to your own vehicle, which can be considerable in the event of an accident. This coverage can shield you from hefty out-of-pocket costs.

Protection Against Theft

In the unfortunate circumstance of theft, bike insurance provides compensation for your loss, generally covering the market value of your bike at the time it was stolen.

Protection Against Natural and Human-Caused Disasters

Comprehensive bike insurance provides robust protection against damages resulting from natural disasters like floods and earthquakes, as well as man-made incidents such as riots and vandalism. This extensive coverage guarantees that you remain financially safeguarded against a range of unexpected events.

Personal Accident Cover

Numerous bike insurance policies offer personal accident coverage, delivering crucial financial assistance in the event of death or disability due to a bike accident. This protection can amount to as much as 15 lakh rupees, providing substantial financial support to the insured’s family during challenging times.

Availability of Cashless Repair Services

Reputable insurance providers typically maintain a network of garages that offer cashless repairs. This arrangement allows you to avoid paying out-of-pocket for repairs included in your policy, making the claims process much more straightforward.

No Claim Bonus (NCB)

Failing to file any claims throughout the policy period can qualify you for a No Claim Bonus, providing substantial discounts on premium rates at renewal. This encourages responsible driving and significantly lowers your overall insurance expenses.

Additional Coverage Options

Bike insurance policies frequently offer additional options like roadside assistance and engine protection coverage, allowing you to tailor your insurance to meet your unique needs and preferences.

Comparison of Different Types of Bike Insurance Plans

Let us have a look at the comparison between the different types of risk coverage. It will help you make the right decision when it comes to buying bike insurance for your personal use or commercial use.

Comparison Pointer	Comprehensive Insurance	Third-Party Insurance	Standalone Own-Damage Insurance
Coverage Type	Protection against personal damage and liability to third parties	Covers solely liabilities arising from third parties	Covers solely the damages incurred to the insured motorcycle
Premium Rates	Increased as a result of comprehensive coverage	Reduced as it provides limited coverage	Balanced between thoroughness and external perspectives
Claim Process	Comprehensive but may necessitate additional documentation	Basic and straightforward	Similar to comprehensive coverage but specifically concentrating on self-inflicted damage
Add-Ons Available	Offers features such as zero depreciation coverage and roadside assistance	Not applicable	Only a few add-ons are available
Policy Inclusions	Comprehensive, encompassing theft and fire-related incidents	Restricted to damages caused by third parties	Protection against losses resulting from accidents, theft, and natural disasters
Policy Exclusions	Lower number of exclusions in comparison to others	Numerous exceptions concerning self-inflicted damage	Excludes liabilities from third parties
Insured Declared Value (IDV)	Increased IDV for comprehensive coverage options	IDV not applicable	IDV applies to the insured motorcycle
Claim Settlement Ratio	Usually increased owing to its thorough nature	Varies by insurer	Varies by insurer
Network Garages	Frequently encompasses a broader network for cashless claims	Limited network	Similar to comprehensive
Legal Requirement	Not obligatory but highly advisable	Required by the Motor Vehicles Act	Not obligatory but highly recommended to have third-party coverage

List of Companies Offering Bike Insurance Policies in India

This table presents a comprehensive overview of the top companies selling bike insurance policies in India. It includes essential information such as their year of establishment, headquarters, claim settlement ratios, network garages and notable features of their offerings.

Company Name	Claim Ratio	Key Features
Royal Sundaram General Insurance Co. Ltd.	92.23%	Extensive coverage, hassle-free cashless claims and personal accident protection
The Oriental Insurance Company	101.63%	A vast network of branches, a strong international presence and a diverse range of insurance products
IFFCO Tokio General Insurance Co. Ltd.	87.77%	The joint venture with Tokio Marine provides an extensive array of insurance products
Tata AIG General Insurance	80.29%	A diverse selection of insurance products by the robust financial strength of the TATA Group
HDFC ERGO General Insurance	79.21%	A strategic partnership with ERGO International, providing a wide range of products that encompasses health insurance among other offerings.
Universal Sompo General Insurance	89.54%	Provides tailored insurance solutions with a wide range of coverage options.
The New India Assurance	85.35%	As one of India's oldest insurers, they offer a wide range of comprehensive coverage options tailored to meet diverse needs.
Cholamandalam MS General Insurance	82.95%	A wide-ranging network of garages provides a diverse array of insurance products specifically designed to meet the needs of customers.
SBI General Insurance	92.05%	A strategic partnership with SBI, a robust bancassurance framework, and a wide array of product offerings.
Future Generali India Insurance Co. Ltd.	57.67%	Concentrate on pioneering products and delivering exceptional customer service.
Edelweiss General Insurance	116.31%	Provides a diverse range of customizable insurance options along with swift claim settlements.
Reliance General Insurance	84.63%	As a key member of the Reliance Group, we provide a wide range of comprehensive general insurance solutions tailored for both individuals and businesses.
Liberty General Insurance	70.95%	Prioritize customer-oriented solutions and swift claim resolutions across multiple industries.
Bajaj Allianz General Insurance	65.83%	The joint venture with Allianz SE provides a wide range of comprehensive motor insurance plans along with additional coverage options.
Kotak Mahindra General Insurance	75.66%	Provides an extensive array of insurance options, encompassing both motor and health insurance plans.
Shriram General Insurance Co. Ltd.	65.43%	Concentrates on delivering need-based products and exceptional customer service as part of the Shriram Group's financial services division.
ICICI Lombard General Insurance	76.53%	Extensive coverage options combined with a robust digital platform for seamless policy management and efficient claims processing.
National Insurance Company	116.44%	As one of the oldest general insurers in India, it provides an extensive array of insurance products, including motor insurance.
Go Digit General Insurance	74.82%	A digital-first strategy, prompt claim resolutions, and cutting-edge product options designed specifically for millennials.
Navi General Insurance	150.69%	Emphasizing digital solutions and enhancing customer experience, we provide an array of customizable policies to meet diverse needs.
Magma HDI General Insurance	85.13%	A joint venture with HDI Global SE offers a diverse range of general insurance products, prioritizing exceptional customer service.

How Should You Choose the Right Bike Insurance Policy?

Choosing the right bike insurance policy is vital for safeguarding yourself against the various risks involved in biking. Here are a few factors to consider when selecting the ideal bike insurance coverage:

Understand Your Coverage Needs:

Analyze your unique needs considering your riding patterns and the potential risks you encounter. Decide if you require only basic third-party liability coverage or if a more extensive plan, encompassing your own damage and extra safeguards, is necessary.

Evaluate the Premium Amount:

Examine premium rates from multiple insurance providers. The cost of premiums can fluctuate based on several factors, including the make model and age of your bike, as well as your geographic location. Utilize online premium calculators to obtain precise estimates.

Check the Insured Declared Value (IDV) :

The IDV represents the highest sum your insurer will compensate in the event of theft or total loss of your motorcycle. Select an IDV that accurately represents your bike’s present market value, as it directly impacts your premium.

Review Add-Ons and Riders:

Explore optional add-ons that can amplify your coverage, including zero-depreciation coverage, personal accident protection or roadside assistance. It is crucial to assess that these enhancements align with your genuine needs to prevent incurring unnecessary expenses.

Claim Settlement Ratio:

Investigate the claim settlement ratios of potential insurance providers. A higher ratio signifies a stronger history of effectively handling claims, which is essential in times of crisis.

Read Inclusions and Exclusions:

Carefully examine the inclusions and exclusions section of the policy document. Understanding what is covered and what is not will help you prevent any surprises during the claims process and ensure that you have sufficient protection for specific situations.

Customer Reviews and Reputation:

Examine customer feedback on different insurance providers. Reviews offer valuable insights into service quality, claim handling procedures and overall customer satisfaction.

Compare Multiple Providers:

Take advantage of online comparison tools to assess multiple policies side by side, focusing on coverage benefits, exclusions and premium costs. This approach will enable you to identify a policy that delivers the greatest value for your specific requirements.

Renewal Process and Discounts :

Familiarize yourself with the renewal process for your policy, including potential discounts for prompt renewals or for maintaining a claims-free record (No Claim Bonus). Taking the time to assess your coverage requirements during the renewal period guarantees ongoing and sufficient protection.

Frequently Asked Questions (FAQs)

A: The best online bike insurance depends on individual requirements, but comprehensive policies from providers such as Digit and Policybazaar stand out for their excellent affordability, diverse coverage options and user-friendly purchasing processes. These companies offer customizable plans and streamlined claim procedures, making them preferred choices for many users.

A: Yes, online bike insurance is legitimate as long as it meets regulatory standards. Policies acquired from licensed insurers offer legal protection for third-party liabilities and damages, guaranteeing your safety while riding on the road.

A: Investkraft is widely seen as a dependable choice for 2-wheeler insurance, providing attractive premiums and diverse coverage options. Nevertheless, it is crucial to compare it with other insurers to ensure it aligns with your unique needs and preferences.

A: In India, the cost of bike insurance usually begins at approximately 1.5 rupees per day for basic coverage. Premiums are influenced by several factors, including the bike’s make, model, engine capacity and the type of coverage selected.

A: Yes, purchasing vehicle insurance online is safe when done through reputable insurers. These platforms utilize secure payment methods and adhere to regulatory standards, guaranteeing the protection of customer data and the reliable issuance of policies.

A: Skipping bike insurance is illegal in numerous jurisdictions, including India. The Motor Vehicles Act requires insurance to cover third-party liabilities and riding it could lead to fines and legal consequences.

A: Yes, two-wheeler insurance is a legal requirement under the Motor Vehicles Act of 1988 in India. This legislation mandates that all motorcycle owners must secure at least third-party insurance to safeguard against liabilities arising from accidents.

A: Riding a bike without insurance is not only illegal but it can also lead to severe penalties that can impact a rider’s finances and future. If a rider is caught operating their bike without the necessary insurance coverage, they may face hefty fines and possible legal actions, which could include court appearances or additional sanctions. Moreover, in the unfortunate event of an accident, the uninsured rider would be held personally liable for any damages or injuries, potentially resulting in costly out-of-pocket expenses and long-lasting repercussions.

A: The Insured Declared Value (IDV) represents the highest sum guaranteed by the insurer in the event of a total loss or theft of the vehicle. It reflects the current market value of the bike, taking depreciation into account.

A: Zero depreciation insurance offers comprehensive coverage for repair costs without factoring in depreciation on parts. This policy guarantees that the insured receives the full amount needed for repairs following an accident, significantly boosting financial security.

A: A comprehensive bike insurance policy is regarded as the top choice because it offers coverage for both third-party liabilities and damages to your own bike. This ensures robust protection against accidents, theft and natural disasters. Additionally, it provides the option to include add-ons for even greater coverage.

A: Online insurance can be more affordable as it cuts out middlemen, thereby lowering commission expenses. Insurers can offer reduced premiums by optimizing their operations and delivering services directly through digital platforms, which also significantly improves the customer experience.

A: Buying insurance online is frequently advised for its convenience, reduced costs and faster claims processes. Online platforms enable seamless comparisons of policies, empowering consumers to select the most suitable coverage directly, without the need for intermediaries.

A: When your 2-wheeler insurance policy expires, you have the option to renew it with your existing insurer or transition to a new provider. It is essential to act quickly to renew your policy to prevent legal penalties and maintain uninterrupted coverage against any potential liabilities.

A: Bike insurance refund policies differ among insurers. Typically, if you cancel within a designated timeframe after your purchase, you might be eligible for a partial refund. It is crucial to review the terms and conditions of your policy to understand the specific details related to cancellations and refunds.

Bike Insurance

What is Bike Insurance?

Types of Bike Insurance Coverage