Riding a bike can be an exhilarating experience, whether it’s for leisure or commuting. However, as a bike owner, it's essential to ensure that you have the necessary coverage to protect you against any financial liabilities that may arise due to accidents, damage, or theft. That's where bike insurance
Here are seven reasons why bike insurance is compulsory.
In most countries, bike insurance is mandatory by law. The Motor Vehicles Act of India, for instance, makes it mandatory for all bike owners to have a valid two-wheeler insurance policy. In other countries, bike owners may be required to have third-party insurance coverage at a minimum. Failure to comply with the legal requirement can result in hefty fines or even imprisonment.
Protection against accidents
Riding a bike can be dangerous, and accidents can happen when you least expect them. A comprehensive two-wheeler insurance policy offers financial protection against damages and injuries caused by accidents. The policy can cover third-party liabilities, including bodily injury and property damage, as well as provide a personal accident cover for the policyholder. *
Coverage against natural disasters
Natural disasters, such as floods, earthquakes, and storms, can cause significant damage to your bike. A comprehensive two-wheeler insurance
policy provides coverage against such calamities, ensuring that you are protected against any financial losses that may arise. *
Protection against theft
Bikes can be highly susceptible to theft due to their lightweight build, and the chances of recovering a stolen bike are often slim. A comprehensive bike insurance
policy can offer coverage against theft, ensuring that you are compensated for the value of your bike in case it's stolen. *
Peace of mind
Riding a bike comes with a certain degree of risk. Having a valid bike insurance policy can give you peace of mind, knowing that you are financially protected against multiple eventualities. You can ride with confidence, knowing that you are covered in case of unfortunate incidents.
Reduced financial liabilities
In case of an accident, you may be held liable for any damages or injuries caused to third parties. The financial liabilities can be enormous and can result in financial ruin. A comprehensive two-wheeler insurance
policy can offer coverage against such liabilities, ensuring that you are protected against financial losses that can come up in these situations.*
High-quality repairs for your bike
When you have a good bike insurance policy in place, you can rest assured that your bike is receiving good-quality repairs if it suffers damage. In the absence of a comprehensive bike insurance policy, you may have had to compromise on the quality of your bike’s repairs due to the high costs often involved. Thus, a bike insurance policy may make it easier to maintain your bike’s good health for a longer time.
The reasons and benefits mentioned above can be helpful when one has the right bike insurance policy in place. To buy the right bike insurance policy, one must consider several factors before purchasing the plan.
Things to Consider While Purchasing a Bike Insurance Policy
When it comes to purchasing a bike insurance
policy, there are several factors to consider to ensure you make the right decision. These include:
Type of coverage:
There are two main types of coverage: third-party liability coverage and comprehensive coverage. Third-party liability coverage is mandatory in India, and it covers the damages caused to a third party in case of an accident. Comprehensive coverage, on the other hand, covers both third-party liability as well as damages to your own bike.
IDV or the Insured Declared Value is the maximum sum that an insurance company will pay in case of a total loss of your bike. It is important to choose an IDV that is closest to the market value of your bike to ensure adequate coverage.
Add-on covers are additional benefits that you can opt for by paying an extra premium, such as zero depreciation cover *, engine protector *, pillion rider cover *, and more.
Claim settlement ratio:
The claim settlement ratio (CSR) * is the ratio of claims settled by the insurance company to the total claims received. A high CSR indicates that the insurance company settles a large percentage of claims.
- Network garages: These are garages that are tied up with the insurance company for cashless repairs. When selecting a vehicle insurance policy, ensure that there are a sufficient number of network garages in your area to make the claims process smoother.
Bike insurance is a mandatory requirement for all bike owners for various reasons. It provides financial protection against accidents, natural disasters, theft, and third-party liabilities. Bike owners can enjoy peace of mind knowing that they are protected against financial losses that may arise due to unforeseen circumstances. As such, it is essential to ensure that you have a valid two-wheeler insurance
policy that offers comprehensive coverage.
* 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.