Bike insurance is a safety net that protects you from various unfortunate and unforeseen mishaps like an accident or your bike catching fire. Since these events are unpredictable, a bike insurance policy is the safest bet to ensure you are financially covered against these damages to your bike. However, just buying a bike insurance policy isn't enough; you need to purchase a policy with the right insurance coverage for protection against damages due to fires.
There are various types of policies that you can choose when buying bike insurance online
or offline. A third-party plan is a minimum required insurance cover but it offers limited protection. Hence, it isn't helpful in times when your bike requires repairs. In these situations, the following types of insurance policies come handy:
Standalone Own-damage Plans
Standalone own-damage plans are policies that can be used to provide coverage for damages to your bike. This includes damages due to accidents, natural and man-made calamities and even fires. For damage due to fire, the insurance companies accept a claim only when there are visible flames, and thus, the damages caused due to internal sparks or overheating of the engine aren’t covered by a standalone insurance plan. *
Similar to standalone own damage plans, comprehensive plans protect damages to your bike against natural calamities, man-made events and even fires with the addition of third-party cover and personal accident cover (only required if you don’t have one already) bundled together. Thus, when you purchase a comprehensive plan, you need not buy a third-party cover or a personal accident cover separately. *
How Can You Fire-proof Your Two-wheeler Using a Bike Insurance Policy?
Here are some essential tips to protect your bike in the event of a fire using two-wheeler insurance:
*Standard T&C Apply
- To ensure your bike is protected, the number one point to remember is that a third-party cover isn’t enough to protect against fires. You need to opt for either a standalone own-damage plan or a comprehensive insurance policy to cover damages due to fire.
- In case of modifications to your bike, you need to report it to the insurance company. If it results in a fire and you happen to skip on informing the insurer, your claim may get rejected. Thus, it is recommended to check your policy’s terms before modifying your bike. Further, it is also advised to inform the insurance company of any modifications so that the insurer can amend the policy's coverage and offer the required protection.
- A mechanical breakdown, such as oil and fuel leaks, overheating, or a short circuit of the electrical components leading to a fire, is excluded from the insurance cover. Thus, damages due to fire as a result of the policyholder's fault are excluded from the insurance cover.
- Lastly, every two-wheeler policy defines geographical boundaries within which its coverage is applicable. Thus, the damages outside this geographical purview aren’t covered by the insurance policy.
What is the Amount of Compensation that is Paid in the Event of Damages Due to Fire?
As outlined above, only a comprehensive plan or a standalone plan protects against the damages due to fire. Thus, the maximum compensation that these policies pay is the insured declared value or IDV stated in the policy. It also depends on the extent of damages due to such fire, reduced by the depreciation and deductibles thereon.
For situations where the damage is beyond repair, it is considered a case of constructive total loss or CTL, and the entire IDV is paid.
Now that you know how a bike insurance plan ensures safeguarding from damages due to fire, make sure to ensure consistent two wheeler insurance renewal
each period. Doing so will help keep the coverage active and provide the necessary protection in case things go down south.
While there are several policies that you can choose from, a two wheeler insurance premium calculator
is a free tool that aids in the comparison of several plans and helps decide the policy that fits you right.
*Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.