Layman's Guide to Understanding Bike Insurance
Published on October 4, 2019. EST READ TIME: 5 MIN
If you own a bike, the chances are high that you have pondered this question –“Do I need a bike insurance policy?”Don’t worry, as you are not the only one thinking this. A lot of bike owners have the same question. As per the law, The Motor Vehicles Act, 1988 and Motor Vehicle (Amendment) Act 2019 mandates all vehicles in the country to have valid third party insurance on them.
And recent amendments to the law have taken it a step further to keep the roads safer. As per a recent directive by the honorable Supreme Court, if you purchase a new bike, you will have to buy third party insurance for at least 5 years.
Types of Policies
You can buy either a third party policy or a comprehensive policy for your bike in India. Each has its benefits and justify their price tags accordingly. Third party insurance is the barebones policy that ensures coverage of any third party damage, in the event of an accident. The policy will ensure that any damages to other individuals or properties are taken care of. But that’s about it.
The policy does not offer much apart from that. This keeps the premiums low.
A comprehensive plan, on the other hand, includes third party insurance and adds a few more features to it. For starters, with this plan, you can claim for the damage done to your own vehicle. The policy offers coverage against natural calamities such as earthquakes, landslides, floods etc. or man-made nuisances such as riots, strikes, vandalism etc.
If you feel that the standard policy just not enough for you, or you want additional coverage, you can take the help of add-ons.Of course, add-ons do come at an additional premium, but they help you enhance the coverage of the policy without having to buy a new one.
Inclusions are situations that your bike insurance policy will cover for you. Here are some of the major ones.
Covers damages caused by natural calamities such as flood, earthquake etc.
If your bike is stolen, the insurer will pay the IDV or the insured declared value of the bike.
These are the scenarios which the insurers exclude from the policy.
Damages to the bike if you were riding under the influence of alcohol or narcotics.
Damages to the bike if you were found riding without your license.
Damages to the bike if you were carrying out any illegal activities.
Since it is required to pay a premium for any bike insurance policy, many bike owners tend to ignore bike insurance. However, should anything adverse take place, you will end up spending a lot more than just the bike insurance premium. So, if you don’t have an insurance plan already, now is the best time to buy one.