How to Select the Right Brand for Buying Bike Insurance?
The rising cost of gasoline, the current state of traffic, and the types of roadways available for transit inside the city make biking an efficient mode of transportation. The Indian motorcycle market rose rapidly from 2008 to 2018, then declined precipitously in 2019-2020 due to COVID-19-induced lockdowns before opening up again this year.
Another additional product will experience an increase in demand as the demand for motorcycles rises. Every bike riding on Indian roads must have proper bike insurance, as required by Section 146 of the Motor Vehicles Act, 1988.
Bike insurance provides financial protection against losses that may occur due to the insurance’s covered provisions. When purchasing such insurance, the scope of coverage and the amount of financial security are predetermined. The insurance policy inclusions, exclusions, and the amount of cover are mentioned in the policy documents.
The Rationale of Bike Insurance
Legality: As previously stated, the Motor Vehicles Act of 1988 explicitly requires a bike owner to have insurance coverage from a licensed insurance provider to operate the vehicle in public. A bike owner who does not have a valid insurance policy may face penalties.
Higher theft ratio: According to the Crime in India statistics report of 2019, motor vehicle theft accounts for 7% of all IPC crimes. The increased prevalence of theft makes bike owners more vulnerable. This necessitates bike owners having a comprehensive insurance policy that protects them.
Accident-prone: Bikes are designed in such a way that they are more prone to accidents than the other four transportation options. Due to weather or road conditions, even the most seasoned and careful rider can be put in jeopardy.
Types of Bike Insurance
Third-party coverage: Third-party insurance is required for all automobiles on Indian roadways. Most accidents involve a third party, and compensating for injuries or property damage caused by your two-wheeler can be costly and frustrating. Third-Party Bike Insurance is a risk cover that protects you from legal liabilities in the event of an accident.
Comprehensive coverage: Comprehensive Bike Insurance provides bike owners with end-to-end coverage. Although comprehensive insurance premiums are more expensive than third-party insurance, they cover a broader range of unanticipated events and situations, including accidents, theft, natural disasters, and man-made disasters. Even with the higher premium, the insured will see a significant increase in value. You can use a premium calculator to calculate two wheeler insurance premium online in easy steps. This will help you to compare premium prices and choose the best plan from the top insurance provider.
Add-Ons to Bike Insurance Policies
Roadside assistance cover: One of the fears for people who travel by bike and during odd hours is getting stranded somewhere if their vehicle breaks down. This add-on feature helps you with 24/7 roadside assistance for any such incident.
Return to invoice cover: This add-on policy provides the policyholder with full purchase invoice value protection in the event of the total loss of the vehicle.
Zero depreciation policy: This add-on enables you to get insurance where you do not get a depreciated value of the bike for the purpose of insurance. In case of losses or damages, a claim for the fuller value of the bike can be filed. Most of the insurers provide this add-on for two years only.
Consumables cover: Bikes need a refill of certain consumables like brake and engine oils from time to time, depending on the usage of the vehicle. This add-on feature helps in the replacement of such consumables.
Personal belongings cover: Coverage for personal belongings can be added to the policy with an add-on. The amount of coverage and the process to claim is mentioned to be followed for loss of personal belongings.
Key cover: Loss of key can be troublesome. This add-on provides cover for the replacement of vehicle keys.
Insurance is a financial protection instrument that aims at providing financial assistance and peace of mind. Each bike owner has different requirements, and they need to obtain a unique set of covers. The decision regarding which policy to buy is as crucial as choosing the bike itself.
Factors to Consider while Choosing a Bike Insurance Plan
Type of insurance: Some insurers provide both third-party insurance and comprehensive insurance, whereas some only provide third-party insurance in their portfolios.
Add-ons: With a rising trend in demands to cater to customers’ unique requirements, insurers have a set of optional add-ons that can be selected along with the policy. Before deciding upon the policy, carefully analyze whether the required set of add-ons that you wish to take are available or not.
Features: The features of the policies may differ with each insurer. Perform a careful analysis of the policy document before arriving at a decision.
Claim settlement ratio: Claim settlement ratio is essential for insurance seekers; the sole purpose behind taking insurance is the possibility of getting compensated in case of any loss and damage arising out of an accident. A good claim settlement ratio states that the percentage of claims were settled out of the applied.
Renewal: Being mandatory by law, you need to have valid bike insurance until you wish to ride your bike on Indian roads. A general tenure of bike insurance remains for one year, with some variance from insurer to insurer. The ease of renewal should also be a factor when choosing insurance, as it is a prerequisite for the entire life of your bike.
With motor insurance accounting for 34.1% of non-life insurance premiums collected in FY21, personal mobility needs are expected to continue driving the motor vehicle market’s growth in the insurance sector.
There are many insurance brands available in the country, and you need to determine your exact need to identify the right brand for your insurance needs. An insurance partner should be experienced and offer a broader scope of choices.