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Things to Consider Before Buying a Long-Term Comprehensive Bike Insurance Plan

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Published on August 20, 2021. EST READ TIME: 3 minutes

Riding a bike is legal in India only if you have third-party insurance, apart from your licence and registration documents of course. This is because, in case you get into an accident, the third-party (person or property) affected will need compensation. And you might not be in a position to make the payment always. In such a scenario, the insurance will take care of the whole thing. However, unless you buy comprehensive two-wheeler insurance online or from your preferred insurer’s closest branch, you will get no coverage for your own bike. So, here’s everything you need to know before getting such a policy.

More on comprehensive bike insurance 

Comprehensive insurance might come at a higher premium, but it will also provide hassle-free, all-round coverage to your vehicle against all exigencies. That is why it is almost always the recommended policy to avail.

The validity of this insurance was one year until 2018 when the government introduced multi-year schemes. These 3-year valid insurance policies were designed to lower the insurance cost and make it easy for the insured to renew the policy. Now, take a look at the things to consider before you buy long-term comprehensive two-wheeler insurance online or offline.

1. Length of ownership

   If you’ve bought a new bike, and intend to keep it for at least three years, a long-term bike insurance policy makes sense. But if you intend to sell your bike in three years’ time or earlier, then a long-term policy may prove inefficient. You would then have to transfer the insurance ownership to the new owner of your bike. And if you purchase another vehicle, you will need to avail insurance for that vehicle as well.

2. Premium hike

   A comprehensive policy will take care of any damage that happens to your vehicle due to an accident, or natural or manmade disasters. It will also cover you against theft. But the larger benefit with long-term insurance is that you do not have to renew your policy every year. Chances are that the policy premium would increase every year otherwise, but if you’re locked in for three years, you can pay the existing premium rate and avoid eventual fee hikes.

3. Add-ons/Riders

   This is where long-term policies require deliberation and thought because add-ons increase the cost of insurance. So, you need to choose add-ons that are relevant for you throughout the policy duration, and not just at the beginning. For instance, taking a passenger add-on insurance cover only for your co-insured to move cities after a while can render your policy inefficient. You can instead take some other popular add-ons like Engine Protection cover, Zero Depreciation, Return to Invoice, and Consumables cover. That’s because replacing the engine or bearing depreciation related loss can be an expensive affair and your standard policy won’t cover these in case you need to file a claim.

4. Insurer’s service

   The credibility of your insurer and their quality of service is a major factor to consider, given that you would be locked-in with them for 3 years. Choose an insurer with a large network of garages and a high claims settlement ratio. While portability may be an option, it is also tedious and uncertain. Speak to existing policyholders if you can or check online reviews of an insurer to get a better picture.

5. Additional features

   Since more and more insurers are moving online, they are saving on administrative costs, and are offering additional benefits to attract customers. For instance, for some insurers, free pick and drop facility from the accident spot to the garage and back home is a part of the standard policy now, which used to be an add-on previously. So, watch out for such perks from different insurers before you zero in on a policy.

6. Compare and buy

It goes without saying that it’s easier to compare two wheeler insurance policies when they’re all available online. Go through the fine print as well before you select an insurer. Do not simply go for the lowest premium as it may prove ineffective later when the real damage happens.

Also, if you are unsure about buying long-term two-wheeler insurance online, the recommended strategy would be to take a 3-year third-party liability cover for bike, and a single year standalone own damage cover for bike. However, a three-year comprehensive insurance would be a cost-effective and hassle-free option if you get your add-ons right.  

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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