26-08-2020
How To Get Bike Insurance In India
Insurance AlertssHow To Get Bike Insurance In India
A bike insurance protects an individual from unforeseen financial losses at the time of accidents or any other casualties caused to a third-party or their vehicle and damages to one’s own vehicle. This makes bike insurance a must.
The number of bikes or two-wheeler vehicles registered as per the latest government data released in 2017 is estimated to be 15.4 crore. Despite the Indian federal government mandating third-party motor insurance for vehicle owners under the Motor Vehicles Act 1988, a majority of two-wheeler owners fail to buy an insurance cover.
The adoption of digital modes of purchase and renewal of policies is being experimented with to spur customer interest in taking a policy in India. At the forefront of this move are digital processes driven by insurance companies, service aggregators and insurtech companies in India.
Let’s look at how you can get bike insurance in India.
4-Step Process to Buy Bike Insurance in India
Buying the most suitable bike insurance policy for yourself requires both your time and attention. The benefits of insuring your bike have long-term future implications, making the process crucial.
You can buy your bike insurance in four simple steps:
Choose Your Policy Type
There are two kinds of bike insurance covers to choose from.
Third-party Liability Insurance
This covers damages to a third party in case of an accident by your bike. The third party will be covered for damages such as injuries, even death, damage to their vehicle or their property by you. This coverage is mandated under law and has lower premium than other bike insurance covers.
Comprehensive Insurance
This type of insurance covers a third party liability as well as your own damages. The third party and you will be covered for damages to the individual, their vehicles as well as yours or to property from accidents, natural calamities or fire among other possible mishaps. This type of coverage is not mandated under law and will charge higher premiums as compared to third-party liability insurance cover.
A bike insurance policy will not be applicable in these cases:
Inactive Policy
Even if you’ve held a policy for multiple years and an accident occurs during the period when your policy has lapsed or is inactive, you will not be considered for insurance benefit.
Irresponsible Behaviour
When a policyholder has an accident due to drunken driving or under the influence of any other kind of intoxication, he/she will not be considered by the insurance company for a cover.
General Wear and Tear
General servicing of the bike due to everyday wear and tear does not fall under the insurance cover. Expenses incurred to beautify your bike, including denting, painting and number plate change, also will not be considered for insurance.
Outside The Policy Purview
When you drive an insured vehicle outside a geographical area or the country where the policy is applicable, you will not be able to file for insurance protection in case of a sudden event.
During times when you have a policy but the vehicle that you are driving isn’t yours, cover automatically doesn’t apply.
Inadequate Documentation
Bikers must ensure they have the required documents with them while driving to ensure their insurance policy can be used in case of a sudden event. These include:
- A photocopy of your driving licence
- The certificate of insurance by the insurance company
- A copy of the vehicle Registration Certificate
- The certificate issued by the pollution control department
Select Features That Impact Your Bike Insurance Premium
Add Ons Such as Personal Accident Cover
The Personal Accident Cover is mandatory for two-wheeler vehicles in India similar to the third-party liability cover. A personal accident cover offers an assured sum of INR 15 Lakh in case of death or total disability of the owner of the insured bike.
Insured Declared Value
IDV refers to the current market rate of your bike. Depending on your bike’s IDV, claims can be made in the case of a collision of theft. The IDV is the maximum sum that the insurance company will compensate towards your policy claim.
Deductibles
A deductible refers to the sum you pay for a damage before the insurance company begins to pay. A policy with higher deductibles attracts lower premium whereas lower deductible policies attract higher premiums.
In cases where the claim raised is lower than the deductible, the insurance company does not need to settle the claim.
Record of Your Past Claims History
The number of claims made in a year have a direct impact on your bike insurance policy’s premium. As insurance companies understand more the number of claims and the possibilities of you being an irresponsible driver, premiums go up
Renewal of Policy Before Expiry Date
For your insurance company to consider you for a discount on the expected premium on your bike insurance, it is advisable to renew your policy cover before it expires.
A bike insurance policy is generally valid for a period of one year and should be renewed before expiry. If you fail to renew your insurance policy before expiry, you may have to pay inspection charges for re-evaluation of your bike and thereby the insurance company may offer a new premium amount even when you continue with the same or similar insurance plan.
In case a comprehensive insurance policy is allowed to lapse for more than 90 days, the accrued benefit of No Claim Bonus is also lost. No Claim Bonus is a discount you earn at renewal time upon not raising a claim for one full cycle of your policy.
Evaluate the Costs Associated with Your Insurance Policy
Compare the Premium of Your Bike Insurance
Many factors determine the premium you will pay. For comprehensive bike insurance, insurance companies charge different premiums for similar coverage. Getting three or more comparison quotes is worthwhile.
Check various insurers’ websites to compare premiums. Make sure you compare the deductibles, coverage and IDVs as premium may be lesser of one insurer but with higher deductibles, lower coverage and lower IDV. This would impact you at the time of a claim settlement.
For third-party liability covers, premium rates are laid down by the Insurance Regulatory and Development Authority of India. These are fixed. The policyholder has to pay for the personal accident cover as an add on along with the purchase of the mandated third-party liability insurance policy.
Factor Cost of Additional Riders to Your Bike Insurance Cover
Additional riders can increase your protection at a higher premium cost.
Zero Depreciation Cover
Under this cover, the insurance company will cover the comprehensive cost of the claim raised in the event of damages without factoring in for depreciation. Depreciation refers to the lowering of the value of a vehicle over a period of time.
To avail this cover, a higher premium has to be paid.
Medical Cover
Under this cover, the policyholder can raise a claim for the medical expenses incurred for treatment or hospitalization in case of an accident or mishap.
This cover attracts a higher premium.
Individuals who already have life insurance with riders such as hospital cash riders, accidental total and permanent disability and accidental death benefit can choose whether to skip this add on under their bike insurance as these riders in their life insurance policy can help in the case of accidents instead.
Personal Accident Cover for Pillion Rider
Under this cover, the insurance company pays for the medical expenses incurred by the pillion rider of the bike that is insured.
This cover attracts a higher premium.
Make Your Purchase
Purchasing the insurance policy requires you to submit your know-your-customer (KYC) details. If you have an Aadhaar card, with your biometric identity issued by the federal government, approval of your KYC details is swift.
You can purchase your bike insurance via two ways:
Visit Physical Branch of Your Insurance Company
A physical visit to the branch of your insurance company is the most traditional way of buying insurance. A physical visit will allow you to collect your policy’s documents in a physical form, if that’s your preference.
Another benefit of physically purchasing the policy is to be able to pay via cash instead of an online mode of payment. Indians’ preference to pay online or via digital means is slowly changing, and insurance buyers following conventional modes of payment may prefer to pay by cash.
Buy Insurance Policy Online
Consumers preferring to purchase their policy online primarily enjoy two benefits:
E-documentation
All policy documentation is available to you in your email inbox, so you can access them via any device with the internet. This is useful when insurance claims are assessed by company representatives as it makes the process hassle-free.
E-payments
India is fast adopting digital banking, which covers digital wallets, online payments, payments apps and bank transfers. Consumers who’ve adopted digital payments processes are disinclined to pay via cash. Buying a policy online gives them the ease of secure online payments.
Source: Forbes
