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Insurance coverage for your bike is not a luxury—it is a necessity. The Motor Vehicles Act necessitates every rider in India to have at least a basic form of insurance. This requirement stems from the high incidences of road accidents in our country, often resulting in injuries, fatalities, and severe bike damage.
In this guide, you will explore the overarching principles of bike insurance from understanding coverage options to choosing between third-party and comprehensive insurance policies.
Types of Bike Insurance
Bike insurance typically comes in two main types: third-party insurance and comprehensive insurance.
Third Party Insurance
Third-party insurance serves as a fundamental safeguard for bike owners, primarily focusing on protecting against liabilities arising from accidents involving third parties. This insurance type offers coverage for damages and injuries inflicted upon others or their property by your bike. While its coverage is limited compared to comprehensive insurance, third-party insurance provides essential financial protection by covering legal liabilities.
Comprehensive Insurance
In addition to covering third-party liabilities, comprehensive insurance extends its coverage to include damages to your own bike. This type of insurance goes beyond the basics, providing financial protection against theft, vandalism, fire damage, and natural disasters like floods or earthquakes. Some policies may even include personal accident cover for the rider.
Remember, two wheeler insurance renewal on time is crucial not only to comply with legal requirements but also to ensure continuous coverage against unexpected accidents, theft, and damages, safeguarding your financial security and peace of mind on the road.
Key Factors to Consider While Choosing a Bike Insurance Policy
Coverage Options: Evaluate the coverage options offered by different insurers, considering whether you need basic third-party coverage or comprehensive coverage that includes protection for your bike as well as third-party liabilities. Compare the benefits and limitations of each type of coverage to ensure it meets your specific requirements.
Premium Costs: Compare premium costs across multiple insurance providers while considering the level of coverage provided. Prioritise getting sufficient coverage even if it means paying a slightly higher premium to avoid potential financial burdens in the event of an accident or theft.
No Claim Bonus (NCB): Consider the insurer’s policy regarding the No Claim Bonus (NCB), which is a discount offered on the premium for every claim-free year. Understand how the NCB works, the percentage of discount offered, and whether it is transferable between insurers if you switch policies.
Policy Exclusions and Limitations: Pay attention to specific scenarios or conditions that may invalidate your coverage, such as riding under the influence of alcohol or engaging in illegal activities, to ensure you have a clear understanding of your policy’s terms and conditions.
Which Insurance is the Best for Your Bike: Third Party or Comprehensive
Choosing between third-party and comprehensive insurance for your bike involves considering your individual needs, risk tolerance, and budget:
Third-Party Insurance:
- Choose third-party insurance if you’re primarily concerned with meeting legal requirements at a lower cost.
- Opt for this option if you have an older or less valuable bike and are willing to accept the financial responsibility for damages to your own bike.
Comprehensive Insurance:
- Select comprehensive insurance if you want broader protection for your bike and peace of mind against various risks.
- Consider this option if you own a newer or more valuable bike and want coverage for damages to your own bike, theft, and other incidents.
Assess your priorities, bike value, and risk tolerance to make the best choice for your situation.
How to Choose An Add-on Cover?
When selecting an add-on cover for your bike insurance, consider your specific needs, such as
Zero Depreciation Cover: Ideal for new or luxury bike owners who want to avoid depreciation deductions during claim settlements. This cover ensures that you receive the full claim amount without accounting for depreciation on bike parts.
Roadside Assistance: Recommended for frequent travelers or those who ride long distances. This cover provides assistance in case of breakdowns, flat tires, fuel shortages, or other emergencies, offering peace of mind during travels.
Engine Protection Cover: Suitable for bikers residing in flood-prone areas or those with high-performance bikes. This cover protects against damages to the bike’s engine due to water ingression, thereby safeguarding against costly repairs.
Personal Accident Cover: Essential for bikers concerned about personal safety or those who often carry passengers. This cover provides financial compensation in the event of accidental death, permanent disability, or medical expenses arising from an accident.
Conclusion
Bike insurance is not just a legal requirement but a crucial investment for every rider in India. With the high incidence of road accidents, having adequate coverage ensures financial security and peace of mind on the road. Whether opting for third-party or comprehensive insurance, understanding the coverage options before your two wheeler insurance renewal is important.
As you consider bike insurance options, remember that ACKO offers low premium insurance solutions tailored to your needs. Plus, you don’t even have to worry about the paperwork as the process is completely online. Don’t let uncertainties on the road derail your journey—protect your bike with ACKO.
Disclaimer
Vehicle insurance is a mandatory requirement as per The Motor Vehicles Act, 1988. Non-compliance can lead to monetary penalties and legal issues. Thus, make sure to buy vehicle insurance and keep the policy active by renewing it before its expiry date. You can buy/renew vehicle insurance easily, quickly, and conveniently via the ACKO website/app for a hassle-free insurance experience.
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