Buying bike insurance becomes simpler when you know what is covered by your insurance plan and what isn’t. The claim for damages can be made if you have the related coverage as a part of your policy.
However, insurance companies have certain conditions when it comes to certain types of spares. Some parts may be covered fully, whereas some, only partially. This article talks about the coverage of different spares in your bike insurance policy
Do All Policies Provide Coverage for Repairs?
There are two broad categories of bike insurance plans available in India — third-party plans and comprehensive plans. Of the two, a third-party plan is a minimum required coverage whereas a comprehensive plan is an optional upgrade.
A third-party plan safeguards the policyholder against legal liabilities in the event of an accident injuring a third person or their property. Thus, a third-party plan provides legal coverage to the policyholder. Third-party plans also provide compensation for death benefits, including the disability of such an aggrieved third person. With such third-party cover, any financial impact of legal liability arising from the policy can be safeguarded.
Since a third-party cover is a minimum required coverage, its bike insurance price
is governed by the regulatory body, the Insurance Regulatory and Development Authority of India (IRDAI). You can visit the official website of IRDAI for further details.
Further, it is important to note that third-party plans offer limited coverage, and hence, no protection is available for any repairs to your bike. So, the repair costs of any damages in such accidents shall be required to be borne by you.
*Standard T&C Apply
Contrary to third-party coverage, comprehensive plans have a broader scope. They not only offer protection for legal liabilities, but also for the damages that are caused to your bike. Factors like natural calamities and man-made perils (including theft) are situations covered under comprehensive bike insurance coverage. Financial backup for the repairs to your bike is possible when you have a comprehensive cover as compared to a third-party policy.
*Standard T&C Apply
Are All Types of Spares Covered by a Comprehensive Insurance Plan?
Like every insurance policy, even comprehensive plans provide a specific coverage mentioned in the policy document. The policy document contains the terms wherein all scenarios where insurance coverage extends are mentioned. Thus, the ambit of coverage of a comprehensive policy can be found in its policy document. For all those spares that aren’t covered by a comprehensive plan, add-on covers are a nifty way to include those damages in your coverage.
For instance, depreciation on spares is a significant portion that is excluded when paying compensation under a comprehensive plan. This, otherwise, can be compensated for, using a zero-depreciation add-on. Similarly, repairs to the engine are specifically excluded, for which an engine protection cover is offered as an add-on facility.
At the time of settlement of a claim, nylon, rubber, or plastic parts, are depreciated at the rate of 50%, whereas fiberglass is depreciated at the rate of 30%. For all glass spares, there is no depreciation calculated thereon.
*Standard T&C Apply
Wrapping it Up
A bike insurance policy is a financial shield against the damages to your bike. However, you need to know that not all spares are covered by the insurance plan. Certain exclusions are specified in the policy document. Some of these exclusions can be thereon insured using add-on covers. To know how much the add-ons increase the price of your policy, you can make use of a two wheeler insurance premium calculator
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.