Owning a bike in India means enjoying the freedom of the road, but with it comes the responsibility of securing the right insurance policy. Finding the best bike insurance policy not only ensures protection against accidents, theft, and damage but also provides peace of mind.
With so many insurers and plans available, it can be overwhelming to make the right choice. This guide will simplify the process for you and help you find the perfect bike insurance policy in India.
Read on to discover the different types of bike insurance and which insurance is best for bikes.
What is Bike Insurance?
A bike insurance policy provides financial protection for your motorcycle. It covers the costs related to managing risks like theft, damage, or accidents. It also covers the costs of repairing or replacing the bike if it is stolen or damaged in an accident. Some policies may also include personal accident cover, third-party liability (which covers damage to other people or property), and add-on benefits like coverage for accessories or roadside assistance.
Having a bike insurance policy that covers at least third-party liabilities is mandatory in India as per the Motor Vehicles Act of 1988.
Types of Bike Insurance
To pick the best bike insurance, you must understand the different types of policies available in India.
1. Third-Party Bike Insurance
This policy provides the minimum insurance coverage which is mandatory under the Motor Vehicles Act of 1988. It covers the losses caused by your bike to other people, their vehicles, or property during accidents. It does not cover the damages caused to your bike or yourself during accidents. It also doesn't provide coverage for theft.
2. Comprehensive Bike Insurance
This is the best bike insurance policy for those who want comprehensive protection for their bike. This policy covers third-party liability, accidental damages to the bike, and theft or burglary as well. It covers the damages caused by human actions, natural calamities, and road accidents.
3. Own Damage Bike Insurance
This policy covers the damages caused to your bike due to weather events, theft, vandalism, accidents, etc. If you have a standalone third-party bike insurance policy (since it is legally mandatory), you can buy this policy to enhance your insurance coverage.
Factors to keep in mind while choosing Bike Insurance
Consider the following aspects before deciding which insurance is best for bikes.
1. Coverage Provided
You must consider the extent of coverage you require for your bike. Although only third-party coverage is legally required, consider your needs and possible risks before choosing a coverage. Make sure that your policy provides adequate coverage from common risks like theft, weather events, vandalism, accidental injuries, etc.
2. Available Add-on Covers
The best bike insurance policy would offer multiple add-ons for extensive coverage. Here are some essential add-on policies that should be available.
- Zero Depreciation Cover: Ensures full reimbursement without considering the bike's depreciation.
- Personal Accident Cover: Provides coverage for injuries to the rider or pillion passenger.
- Roadside Assistance: Offers help in case of a breakdown, flat tire, or other emergencies.
3. Claim Settlement Ratio
A claim settlement ratio represents the percentage of claims paid by the insurance company against the total number of claims accepted. The higher the claim settlement ratio, the more trustworthy the insurance company. A claim settlement ratio of more than 90% is considered favorable.
4. Network of Cashless Garages
When you get your bike repaired in the garages which are part of your insurance company's network, you don't have to pay any cost from your pocket. The insurer settles directly with the garage. Make sure that your insurance company has a wide network of garages.
5. Insured Declared Value (IDV)
The IDV is the current market value of your bike, which determines how much you will receive in case of total loss or theft. Choose an insurance company that offers you a fair IDV that represents the true current market price of your bike.
6. Premium Amount
Compare the premiums of policies offered by different insurance companies before choosing the best bike insurance for yourself. A lower premium seems attractive, but make sure that the policy provides adequate coverage. Consider the deductibles, which are the amount you pay out of pocket before the insurance kicks in before evaluating your premium.
7. No Claim Bonus (NCB)
Prefer insurance policies that offer a no-claim bonus. No claim bonus is a discount offered on the premium for each year you don’t file a claim. This benefit can reduce your insurance cost significantly if you don't make any claims in the future.
Also Read: 7 Reasons Why a Motor Insurance Claim Can Be Rejected
Popular Bike Insurance Plans
If you are looking for the best bike insurance company in India, check out the top bike insurance plans available in India.
- HDFC Ergo Two-Wheeler Insurance- HDFC Ergo is a leading bike insurance company with a claim settlement ratio of 100%. They provide 24x7 customer assistance and have a network of more than 2000 garages. The company provides all bike insurance policies like third-party coverage, comprehensive coverage, and a special plan for brand-new bikes.
- Go Digit Bike Insurance: This company provides online bike insurance without any paperwork or physical inspection required. It has a claim settlement ratio of 97% and a network of 4000+ garages for cashless service.
- SBI General Insurance Bike Insurance: This trusted insurance company has a huge network of 16,000+ garages that provide cashless services. This is a great option for bike owners with a claim settlement ratio of 94%.
Conclusion
You must devote sufficient time to market research to choose the best bike insurance policy. Compare the coverage, cost, add-on options, and other benefits provided by multiple insurance companies before making a decision.
FAQs on Best Bike Insurance Policy
Which type of bike insurance is best?
Comprehensive bike insurance is the best bike insurance policy because of its extensive coverage. It provides legally mandated third-party liability coverage along with coverage against own damages.
Is online bike insurance good?
Yes, online bike insurance policies offered by trustworthy and reputed insurers can be good. However, consider the premium cost, coverage, and other features before making a decision.
Can we buy a bike without insurance?
You cannot drive a bike in India without insurance. Having at least a third-party liability coverage for your bike is mandatory as per the Motor Vehicles Act of 1988.
