Complete Guide on Knowing Basic Terms of Your Bike Insurance Policy

Bike rides are thrilling and fun; at the same time, bikes save you a lot of time in traffic. But bikes are accident-prone as they need a lot of focus and balance. A two-wheeler insurance policy is always there to deal with unforeseen situations.

Bike insurance provides insurance coverage if your vehicle meets an accident, theft, natural or man-made calamities, etc., and also provides third-party liability protection. The Motor Vehicle Act 1988 made it mandatory to have third-party insurance coverage for two-wheeler owners. 

An insurance policy can save you from paying for misfortunes and protect you from financial risks. Here is a complete guide on knowing the terms of your bike insurance policy in detail.

An online check is needed to understand the various benefits of third-party insurance, which covers a vehicle and its owner in case of any accident or damages due to any natural disasters like fire, storm, flood or man-made disaster like burglary or strike.

Various types of bike insurance policies

Comprehensive policy 

This Policy covers insured vehicles against damages caused by theft, natural flood, earthquake, fire, etc., or man-made tragedies such as riots, vandalism, protests, etc. 

It provides you with protection against your personal damage as well as third-party liabilities. It also includes compensation for all kinds of ravages that occur during accidents.

Third-party insurance

This policy covers losses to the third-party vehicle only and not your bike. It covers bodily injuries and harm to the damage caused to a third party in an accident caused due to your bike. This insurance is mandatory for all two-wheelers running on the road.

It is the minimum bike insurance coverage offered by insurance companies. As compared to the comprehensive policy, it has a lower premium. 

Add-ons with bike insurance

Add-ons are offered as additional features and generally come with a comprehensive policy. You can purchase these benefits with the comprehensive policy willingly by paying an extra premium. For example, roadside assistance cover, pillion rider cover, emergency assistance cover, etc.. 

Perform bike insurance online check for such add-ons, and choose among them. Here are the popular policy add-ons offered by insurance providers these days.

Zero depreciation

Also known as Nil Depreciation or bumper cover, zero depreciation means if your bike gets damaged because of a crash, no depreciation will be applied to the vehicle while providing coverage for wear and tear of your vehicle’s parts. 

Roadside assistance

A technician will come to the rescue of your two-wheeler when you face a breakdown, mechanical failure, or repair issues during a ride if you have opted for the Roadside assistance add-on. 

No claim bonus protection 

It is the heftiest discount add-on offered on a bike insurance policy. Insurance companies provide this premium discount to bike owners if they don’t make any claims during the complete term of the insurance policy.

Factors that Implicate Premium of Bike Insurance 

Following are the factors that influence bike insurance policy: 

Insured’s Declared Value (IDV) 

The maximum amount that an insurer pays at the time of a claim. The insured declared value exemplifies the current market value of the bike. The IDV is calculate once a year. The IDV of your bike directly affects the premium of your insurance policy. 

Age of bike

The maintenance of a vehicle gets more costly with its age. The older your bike, the more premium you have to pay for its maintenance.

Bike model and its make 

The manufacturer and model of the bike play an important role in the bike insurance rate. A cheap bike will have a low insurance rate, whereas a high-priced motorcycle will have a higher rate. 

Engine’s capacity (Cubic Capacity)

The bike’s engine capacity plays a great role in the premium price. The engine’s cubic capacity is use to evaluate the size of the engine. 

A bike with low engine capacity will cost you a lower premium; on the other hand, a motorcycle with more cc will cost you higher premium rates. 

Bike Insurance Policy Renewal 

Bike insurance needs to be renew every year. A few companies also offer a three-year comprehensive policy and save you from the hassle of reviving your insurance policy every year. 

It is essential to timely renew your bike insurance to protect your bike. You can also renew your bike insurance online without hard work while sitting in your comfort zone.  

ACKO bike insurance offers an online renewal policy that offers hassle-free renewal anytime and anywhere. 

In conclusion

To process your claim, you should contact your insurance company as soon as possible so that they can make the necessary arrangements for any casualties. Total loss or theft are two situations where your bike insurance claim is consider.

Having an insurance policy for your vehicle is vital as the odds of mishaps are increasing daily with an increasing number of vehicles on the road.

Be careful while you are riding, don’t forget to wear a helmet and follow the traffic rules. Ensure to follow all safe riding norms.