Every vehicle owner, as per law is required to have a valid insurance policy in compliance with the Motor Vehicles Act, 1988. Naturally, one would wonder what and how much the insurance plan for the vehicle would cost them.
The rates range differently for different vehicles and their types. Naturally, the costs and repairs of cars will not be the same as that of a bike. Similarly, the cost of an insurance policy for a bike will be different from that of other vehicles. If you are a bike owner looking for an insurance plan for bike insurance and how much the insurance will cost you, here are a few important points that would have an impact on the cost incurred by you for your bike insurance.
Protect yourself with unnecessary financial burdens by opting for the right bike insurance.
Types of Bike Insurance and Variation in their Costing
There are currently two types of major two-wheeler insurance plans available in the market. The cost and benefits that you would incur and enjoy as a policyholder depend on the type of bike insurance you opt for.
Third-party liability insurance policy
For every bike used in the country, a third party liability insurance cover is mandatory by law as specified by the Motor Vehicles Act, 1988.
- It is compulsory and offers coverage against any sort of damage or injuries sustained by another person.
- In case of property damage because of the bike.
- In case of the death of an individual because of the bike.
It is also the cheapest bike insurance option available as it does not provide further coverage for personal damage to the bike or injury or any other perks and benefits.
Comprehensive package policy
Comprehensive insurance policies are the type of bike insurances that are more inclusive and offer more coverage benefits and add-ons. They offer coverage and assistance in the following circumstances-
- Basic third-party liability coverage consisting of damage, injury, or death of an individual or in case of property damage.
- In case of theft of the bike.
- In case of damage due to natural calamities like earthquake, flood, etc
- In case of damage sustained by the bike due to man-made causes like malicious intents, strikes, riots, fire, etc.
- Damage to bike in moving and transfer of location through rail, road or air.
- Add-ons under the comprehensive bike insurance policies are additional coverage options that can be personally selected by the bike insurance policyholder. Simply by paying an additional premium, policyholders can widen the coverage benefit and assistance offered by the comprehensive policy.
Add-ons like Zero-depreciation, roadside assistance, No Claim Bonus protection, etc are a few common and popular types of add-ons that are offered under comprehensive policies. They are not just extra costs added to the premium with no actual use. For example, the Zero depreciation add-on helps adjust the claim amount without deduction of the depreciation costs making the add-on really useful and economic.
Therefore, owing to the extra coverage benefits and perks that it offers, the comprehensive policies are priced higher than the third-party liability insurance policies.
Premium is the decided amount that the insurer will receive from the insured periodically during the extent of the insurance plan. The premium for most bike insurance policies are decided after consideration of the following basic points-
- Engine capacity of the bike
- Make and Model and Variant of the bike
- Age and IDV
- Claim history
- Add-ons, if chosen.
- Choice and preferred coverage
Here are a few Tips for lesser bike insurance premium
- Employ anti-theft devices, these additional security measures such as anti-theft locks increase the safety of the bike and lower the chances of it being stolen or damaged.
- Policyholders who do not make claims can avail of a discount allowed on the premium by the insurer.
- Avoid buying bulky and modified bikes as they are more likely to get damaged easily or stolen due to their looks.
The coverage that the bike insurance provides is amongst the top factors that could affect the cost of your bike insurance. However, the prospect bike insurance policyholder must do the needed research before opting for an insurance policy.
Comparing the options and offered by the various insurance companies in the market is highly important so that one is certain that they are not paying more for lesser coverage benefits and more. There are many platforms and websites where they make the task easier for prospect policy buyers and provide a detailed comparison of the bike insurance options available and the pros and cons that go along with it.
It is very beneficial to have a bike insurance policy if you are a two-wheeler owner in the country. Not only because it is demanded by the law but also because it saves you from legal hassles and financial burdens in case of unfortunate accidents and events.