Clarify All Doubts Related To Bike Insurance

Bike insurance policy is a basic protection plan for your bike against damages caused by accident or calamities. It can also protect you from liabilities caused by damage to third party property or life. Just enter your basic details like your bike purchase or registration date, RTO location, bike manufacturer, make and model and get quote from leading insurance companies to compare. You can then select any plan, fill up the proposal form and make payment to get insurance cover instantly.

What is Two Wheeler Insurance?

Two wheelers or bikes are the most convenient modes of transport these days. But, due to road conditions and rising traffic, it becomes necessary to protect your bikes from damages suffered in case of any unfortunate events. Having a two wheeler insurance helps cover you against any damage that may occur during a mishap like an accident, natural disaster or due to theft. A two-wheeler insurance policy also protects the financial liability which arises when the two-wheeler injures or kills any individual other than the owner of the vehicle. Moreover, if the two-wheeler damages any third party property, the policy also covers the financial loss incurred and payable by the policyholder. Also, carrying a two-wheeler insurance policy is mandatory as required by the Motor Vehicles Act, 1988.

What are the different types of Two Wheeler Insurance plans available?

There are various types of two-wheeler insurance plans. These include the following –

Third party liability only plan– These plans, as necessitated by the Motor Vehicles Act, cover only third party financial liabilities which you face. These liabilities arise if you cause injury or death of any third party in an accident involving your two-wheeler. Moreover, any financial liability faced because your two-wheeler damages any third party property is also covered under this plan. The premiums for these plans are fixed by IRDA and they depend on the engine capacity of the two-wheeler.
Comprehensive package plans – These plans provide a combination of two types of coverage benefits. The first part of the plan covers third party legal liabilities which arises when a third party is hurt or killed or his property is damaged because of your two-wheeler. The second part of the coverage is called the own damage coverage. This covers damages suffered by the two-wheeler itself and pays for the applicable cost of repairs. Premiums also comprise of two parts. One is the third party premium fixed by IRDAI and the other is the own damage premium fixed as per the Insured Declared Value of the bike by the insurer.
Long term two-wheeler insurance plans – IRDAI allows two-wheeler insurance plans to be offered for a longer tenure of 2 or 3 years. Thus, long term two-wheeler plans come with a higher coverage period. They cover the two-wheeler for a continuous period of two years or three years as chosen by the policyholder. Also you are protected against annual increase in third party rates by IRDAI.
Standalone Own damage plan–It provides protection against damages to your bike in case of accidents, theft, fire or natural calamities. It can only be bought if you already have an existing third party insurance cover valid for atleast a year.

What are the advantages of having aBike Insurance Policy?

Following are some of the advantages of having an insurance policy for your bike:

In case of any accident involving your bike, if you injure or kill any individual or damage someone’s property, you would be financially liable for the injury or damage caused. In case of accidental death, the liability is quite high. This however gets covered by a your insurance policy.
If your bike suffers heavy damage in an accident, the repair costs are quite high. Having a comprehensive bike insurance will cover such repair
A bike insurance plan is a mandatory requirement. If you don’t have insurance, you face legal consequences which include heavy fines and might also lead to imprisonment. So, buying a bike insurance plan is necessary in this context too.

Why is it necessary to compare Bikeinsurance policies?

It is always recommended to compare first and then buy bike insurance policy. Following are some of the reasons to do so:

Find the best plan - There are a lot of insurance plans available in the market. Each plan has its own benefits. To know the difference between these plans, you need to compare and select the plan which best suits your requirement.
Choose a higher IDV– TheIDV reflects the market price of your bike after being adjusted for depreciation. Different policies provide different rates for insurance based on the IDV fixed by them. Ideally, you should opt for the highest possible IDV in order to get maximum claim settlement from the insurer in case of theft or total loss of your bike.
Get the best premium rates – Once you choose to compare insurance policies, you have the option to get the best quote among the premium rates offered by different insurance companies.
Get extensive coverages –If you want your policy to have add-on covers, you should compare different plans and choose the one that has the required coverage features at the best rates of premiums.
Get cashless garage service – Every insurance company has a tie up with a number of garages across the country. However it is always recommended to go for the company that has an exhaustive network of such garages. You can hence compare which insurers have higher network garages available at your location and select that best.

What kind of damages are covered in a comprehensivetwo wheeler insurance policy?

Following losses are covered in a comprehensive two wheeler insurance policy:

Accidental damages on bike
Compensation in case of theft
Damages by man- made calamities like riots, terrorism, fire, explosions etc.
Damages caused by natural calamities like earthquake, flood, landslide etc.
Third party injuries or death and third party property damages
Personal accident cover for the driver in case of injuries, disablements or death in an accident

What is not covered in a two wheeler insurance policy?

The following losses are excluded in a two wheeler insurance policy:

Normal wear and tear of the parts
Damages caused when driving without a valid license or under the influence of drugs or alcohol
Damages caused by mechanical or electrical breakdowns

What are the different add-ons available for two wheeler insurance?

In a comprehensive bike insurance policy, there are various add-on covers which help increase the scope of protection offered by the policy. Add-on covers are additional coverage options which come at an additional premium. The following are the various add-ons available for you:

Roadside assistance – provides 24x7 assistance in case of sudden breakdowns during commute
Zero depreciation cover – no deduction for depreciation on damaged parts during claim settlement by the insurer
Personal accident cover for passenger – the pillion rider gets a personal accident cover in case of serious injuries in accident
NCB Protect – helps you protect your no claim bonus even after a claim in made
Engine protectcover – covers damages caused to engine especially due to water ingression or lubrication oil leakage

What is a Zero Depreciation cover?

In case of a claim under bike insurance, the insurer would settle the repair bills after making deductions for depreciation of bike parts. As a result, the difference in the bill and compensation has to be borne by the owner. However, if zero depreciation cover is opted, the insurance company will have to reimburse the entire expense without any depreciation.

What is a roadside assistance cover?

If opted, the insurance company will give you a 24/7 road side assistance whenever your bike faces a sudden breakdown in the middle of a highway and make sure you reach your destination and your bike reaches the nearest garage for repair.

What is a No Claim Bonus? And what happens to NCB when a claim is made?

No claim bonus is an discount provided by the insurer in case you do not make any claims in a policy year. The discount is applied on the Own Damage component of a comprehensive car insurance policy and can go upto55% for some insurers. However NCB gets forfeited in case a claim is made by the owner.

What is NCB Protect cover?

Through this cover, you can protect your NCB discount even if you have made a claim under your policy. The add on will not only protect your existing NCB but will help you move to the next slab during renewal irrespective of any claims made in the previous policy year.Multiple claims can be made under this cover without affecting your NCB.

What is engine protection cover?

During heavy rains, riding your bikes through flooded roads can give rise to various engine related issues. A normal insurance cover doesn’t cover damages caused to your engine in such scenarios. However if this cover is opted, the insurer will compensate for expenses incurred for repairing engine damages.

What if someone else was riding my bike at the time of the accident,is he covered under my policy?

If the person driving the vehicle has a valid license, the vehicle is insured for all the accidents that occurred due to the hazards specified. To insure the person driving the vehicle, who is not the owner, an additional personal accident cover has to be taken for unnamed passengers. For the owner-driver, the policy compulsorily has a personal accident cover, as per tariff.

What is Personal Accident cover for bike insurance?

The insured is adequately covered in case of an occurrence due to the specified hazards leading to bodily injury/ permanent disability or death. The insurance policy essentially has a PA cover for the owner, as per tariff, for which no extra premium is to be paid. For the pillion rider person, the PA add-on cover has to be taken separately paying an additional premium. This will cover any injuries or disablements suffered by the pillion rider when involved in an accident.

What are the factors affecting the premium amount?

The premium payable for bike insurance depends on:

Make, model and variant of the bike
Age of vehicle
Location of registration
Duration of cover– 1, 2 or 3 yearpolicy
Any add-on covers opted

What is IDV and why is it important?

Insured declared value or IDV is the current market value of your bike. It is calculated after applying appropriate depreciation on the purchase value of your bike based on the purchased or registration date. The depreciation gets applied on the IDV in terms of percentage based on age of bike as shown below:

Not exceeding 6 months: 5%
Exceeding 6 months but not exceeding 1 year: 15%
Exceeding 1 year but not exceeding 2 years: 20%
Exceeding 2 years but not exceeding 3 years: 30%
Exceeding 3 years but not exceeding 4 years: 40%
Exceeding 4 years but not exceeding 5 years: 50%

IDV plays an important role in deciding your insurance premium. Higher the IDV you opt for, higher premium you have to pay. Also, in case of total loss or theft, amount equal to your IDV in the policy will be compensated by the insurance company. Hence it is recommended to keep IDV high even though it will increase your premium outflow.

How can I pay premium for buying bike insurance online?

You can pay your bike insurance premium online through one of the various modes of payment offered by the insurance companies. Once you have shortlisted a two wheeler insurance plan and filled the proposal form, you will be redirected to the payment page of the insurance company. You can then choose to pay through credit or debit cards, net banking, wallets or UPI. Once payment is successful, your insurance policy will be generated instantly.

If I do not make any claims, do I still have to paythe premium again during renewal?

Yes, you would be required to pay premium again. However you can avail the benefit of No Claim Bonus offered by your insurance company. Through this benefit, you can get discount of upto 55% on own damage component of your insurance premium depending on number of claim free years and the insurance company’s policy.

How can I reduce my bike insurance premium?

You can reduce your bike insurance premium in the following ways:

Choose appropriate IDV for your bike
Select only required add-ons
Install anti-theft devices certified by ARAI
Buy insurance online to avoid paying commission
Accumulate NCB by riding safely and not raising claims with the insurer

What is a deductible and how does it impact my insurance premium?

Deductible is the amount that needs to be paid by you in case of a claim. There are 2 types of deductible – Voluntary and Compulsory. Compulsory deductible is already included in the policy and is a nominal amount you have to pay for every claim raised by you with the insurer. If voluntary deductible is opted, you will pay for both compulsory and voluntary deductible amount in case of claim. However a voluntary deductible will help in bringing down your insurance premium as you are also bearing some cost of the damage expense.

What is the procedure for raising a claim request online for my bike insurance?

To make a claim for your bike insurance bought through Madhav Insurance Brokers Pvt. Ltd., you can raise a request with us and our claims team would help you get your insurance claims settled at the earliest. You can reachMadhav Insurance Brokers Pvt. Ltd. at our toll free number 1800 2676767 or drop us an emailatMadhav Insurance Brokers Pvt. Ltd..care@FYNIX.com and oursupport team would get in touch with you to help with your claim procedure. Alternatively, you can also get your claims settled through your insurance company. You can send an email to the insurance company intimating them about your claim. You can also call the company’s claim helpline and register your claim. The company would then guide you on the process of bike insurance claim settlement. You can raise a claim request in case of damage to your bike due to accident, or damage caused to third party property or life by your bike, or if your bike gets stolen.

What documents are required to be submitted for a bikeinsurance claim?

The following documents are required to be submitted to the insurance company in case of a claim request:

Filled up and duly signed claim form of the insurance company
Copy of the registration copy of bike
Copy of driving license of the rider
Copy of the policy document
FIR in case of an accident
Original repair bill and cash receipts

How to claim insurance if my bike gets stolen?

In case your bike gets stolen, immediately contact your insurance company and intimate them about the incident. After intimating the insurer, you need to fill up their claim form and submit it to them. You will need to give your original bike keys, copies of your RC and driving license and policy document. You will also have to submit FIR copy with “No Trace Report” for the bike from police.

How to claim insurance for a bike accident?

In case of an accident, you can raise a claim request against Own Damage component of your bike insurance. Following are the steps to be followed:

File a claim request with the insurance company immediately
Keep copies of license, bike registration and policy documents ready
File police FIR if needed and keep a copy of that
The insurance company will then appoint a surveyor who will inspect the bike to assess damage and losses incurred
The surveyor will submit report to the insurance company with repair details
You can take the bike to one of the garages where the company has a cashless service tie up. The insurance company will cover the repair cost except for the deductibles which have to be borne by you
However, in case you do not avail cashless service, the entire expenses will have to be paid by you and the insurance company will reimburse the repair costs upon submission of original bills

What are the common reasons for claim rejections under bike insurance?

A claim request can get rejected due to many reason. Some of them are as follows: If you provide incorrect information in the proposal form on the insurance

If you were riding without a valid driving license during accident
If you were riding under influence of alcohol or drugs
If the bike is second hand and the policy is in the name of previous owner
If the accident happens outside of policy tenure
If you apply for an Own damage claim in TP only policy
If the bike was used for carrying illegal activities during the incident

What precautions should I take in order to avoid claim rejection?

Getting your claim rejected can lead to a heavy financial impact on your wallet. Hence follow the below rules and avoid getting claim rejection:

Always carry a valid driving license while riding
Do not drive under influence of liquor or drugs
Keep a policy of your insurance in your bike
Know the list of inclusions and exclusions under your policy
Always intimate your insurance company first in case of any unfortunate event involving your bike

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Clarify All Doubts Related To Bike Insurance