What is a Bike Insurance – Types and Add ons Covers in Two-wheeler Insurance


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What is Bike/Two-wheeler insurance?

You need to be able to define insurance before you try to avail such a policy.

Bike insurance is known as two-wheeler insurance in technical parlance. It is the best tool that you have to secure yourself from the financial losses that may happen to your vehicle in case of unforeseen and unfortunate events such as road accidents. Indian Motor Tariff 2002 says that every biker in India must have at least third-party bike insurance coverage.

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Different types of Bike insurance 

In terms of coverage, the bike insurance policies can be divided into three categories –

  1. Third-party bike insurance,
  2. Comprehensive bike insurance, and
  3. Standalone OD (own damage) bike insurance.

So, you already know the definition of insurance. Now it is time to know in detail about the various types of bike insurance out there.

1. Third-Party Two-wheeler Insurance

The third-party policies are also referred to as liability-only policies. As you may have guessed already, this is the most basic of all that we have mentioned over here. It basically insures you against all third-party liabilities that may arise in cases of accidents that were caused by you while riding your bike. This means coverage for property damage, and injuries or deaths that you may have caused in these cases.

Please understand that such a policy would not cover your bike for the damages that it may have suffered in an accident.

2. Comprehensive Two-wheeler Insurance

If you want to know what insurance means, you need to know more about comprehensive policies. These policies provide you with coverage that you would not get from a third-party policy. They are also referred to as package bike insurance plans. These policies cover all the damages that your bike may have suffered in an accident. So, these policies provide you coverage for both third-party liabilities as well as the damages that you may have suffered in such an unforeseen event.

3. Standalone OD (Own-Damage) Two-wheeler Insurance

Do you really want to know what bike insurance is? Then you should know about the standalone OD policies as well. As the name of the policy type would suggest, these policies would cover you only for the damages that have been sustained by your bike in case of accidents as well as other such unfortunate events. It would also offer coverage in case your bike is stolen. However, it would not cover the third-party liabilities that may arise in such cases. So, if you buy such a policy you would have to get third-party coverage as well.

This is as per the legal requirement that has been established in this case by the Indian Motor Tariff, 2002.

Areas covered by the OD bike insurance policies 

Understanding this is a key part of realizing what bike insurance means. Those areas may be enumerated as below:

  • road accidents
  • strikes and riots
  • natural calamities such as floods, cyclones, and earthquakes
  • terrorist activities
  • explosion and fires
  • damage suffered while traveling by air, road, rail, and water

Please understand that these areas are covered by comprehensive bike insurance policies as well.

Add-on covers in Bike Insurance

This is a crucial part of understanding what bike insurance is. The most prominent options, in this case, maybe enumerated below:

  • zero depreciation cover
  • roadside assistance cover
  • passenger cover
  • consumables cover
  • engine protect cover

With the help of the zero depreciation cover, the depreciation rate of your bike would not be a factor when you make a claim on your policy. In such cases, the insurer would not consider while doing the relevant calculations. Such coverage is indeed expensive but in cases of crisis, it can prove to be really handy.

The roadside assistance cover offers you coverage while you are on road with the vehicle. So, in case your vehicle breaks down you would get the likes of taxi services and towing services. In fact, you could get booked at a hotel nearby as part of such coverage! They would also arrange for a mechanic to visit your location and take a look at your bike if you wanted it.

The passenger cover protects the people who ride with you on your bike when an accident occurs. So, if you know what is bike insurance you would definitely have such coverage in your policy. You normally do not get such coverage with personal accident coverage.

It is important under consumables cover to properly realize what bike insurance is. With the help of such coverage, you get financial protection for replacing certain parts of your bike that cannot be used more than once. This includes the likes of nuts, coolant, and bolts, to name a few.

The engine protect cover saves you from the financial ramifications of the damage sustained by your bike’s engine in an accident or such other event. This is not something that you would get from a standard bike insurance policy.

Things to keep in mind while buying Bike insurance in India

You already know what bike insurance is. Now is the time to know the factors that you need to focus on while you are buying those policies. They may be enumerated as below:

  • policy coverage
  • add-on covers
  • premium amount
  • available discounts
  • terms and conditions

It is very important to know the kind of coverage that is being offered by a policy before you buy it as such.

The add-on covers are extra benefits that you can add to your bike insurance policy by paying some additional premium for the same.

Premium is the most important factor when it comes to buying a bike insurance policy.

A lot of insurers these days offer discounts on their bike insurance policies and you should know about them so that you can avail them.

You would get to know all that you need from the terms and conditions section of the insurance contract. So, it is important to read it up and understand what you are getting from the policy. So, as you can see for yourself, it is not enough to know what bike insurance is. You should know these things as well.

Also Read: How To Select The Right Bike Insurance Company | How Multi-Year Insurance Plan is Beneficial for Your Bike? | Get an affordable Two-wheeler Insurance plan in easy steps

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May 01, 2022
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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