Types of bike insurance policies you can buy in India

Indian citizens depend on personal two-wheelers to avoid unreliable public transport, time-consuming cab-hailing trips, and overcharging auto-rickshaws. Bikes and motorcycles are preferred transport modes due to their easy maneuverability and seamless parking.

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However, owning a bike comes with several responsibilities, such as obtaining proper insurance. A two-wheeler is also susceptible to risks and damages from unfortunate incidents like other vehicles.

In such a scenario, an owner needs to pay for the damage repair costs, resulting in financial liability. To avoid paying hefty repair bills, one must obtain proper bike insurance from a reputed insurer.

The following segment explains the types of insurance policies one can purchase in India.

What are the types of bike insurance policies in India?

Several insurance providers in India offer a range of attractive deals on bike insurance plans tailor-made to an owner’s needs. Moreover, they also provide various types of insurance plans based on coverage limits. They are as follows:

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1. Third-party

As per the Motor Vehicles Act, 1988, every vehicle owner must at least obtain a third-party insurance plan to avoid hefty traffic penalties. Under this policy, one can get coverage benefits against third-party damages caused to a person, property, or vehicle during a collision or other accidents. Additionally, a third-party bike insurance plan also covers litigation issues and other legal liabilities arising from such incidents. So, one should obtain this basic insurance plan and avoid third-party liabilities.

2. Standalone

Policyholders of third-party insurance can obtain their own standalone damage two-wheeler insurance policy and cover damages caused to their insured bike. This plan covers damages caused to an insured two-wheeler from natural and man-made disasters, bike theft, and damages beyond repair. However, this policy does not cover third-party damages. So, owners should purchase this policy only after obtaining a mandatory third-party insurance plan.

3. Comprehensive

This is a well-rounded insurance plan covering both third-party and own bike damages. As the coverage limit for this plan is more, it is available at a higher premium. Policyholders of comprehensive plans do not need to purchase a separate third-party and own damage cover. Additionally, one can get an add-on facility against additional expenses over and above a comprehensive insurance policy.

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Comparison of all three

After knowing about the three bike insurance plans, one can consider comparing them to make an informed decision.

Third-party insurance	Own damage bike insurance	Comprehensive insurance
Covers damages inflicted on a third party due to a collision with an insured bike.	Also known as first-party coverage, this plan covers own bike damages.	This is an overall policy covering both third-party and own bike damages.
It is mandatory to obtain this plan.	Optional	Optional
IRDAI fixes the premium rates for this plan annually.	An insurer fixes the premiums for this policy.	The premium rates are fixed by combining IRDAI-specified rates and insurer-specified rates.
A vehicle’s IDV is not essential to consider while deciding the sum assured amount.	IDV is a vital attribute to factor in for determining the sum assured.	IDV is necessary to calculate the sum assured for the own damage coverage part of the policy.
Premium rates are standard.	Premium rates are slightly higher.	Optimal costs of premium
Add-ons are not available.	Add-ons are not available.	One can include add-ons against additional charges.
The Motor Accident Tribunal decides the amount payable under a third-party claim.	The insurer determines the amount payable under an own damage claim.	The insurer finalises the amount payable under its own damage claim based on the surveyor’s report. Third parties receive claim reimbursement under the Tribunal’s final award.
Coverage for own damages is not available.	Available	Available.

 

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Which one should you buy?

Choosing an insurance plan for a bike might seem daunting considering the number of options available. A well-rounded insurance plan must offer an extended coverage limit and be cost-effective.

With this in mind, one can purchase a comprehensive bike insurance policy and enjoy additional coverage. As the coverage limit for this plan is more, it is available at a higher premium rate.

So, individuals looking for a budget-friendly option can consider the other two plans.

Additionally, one can opt for a seamless procedure of policy comparison by going through the aforementioned section.

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