How Much Does a Bike Insurance Policy Cover?

Bike Insurance – When one decides to buy a bike, the decision involving the type and model of the bike is the most difficult, requiring individuals to invest significant time and effort. It is also crucial to decide on the best fit for them by analyzing various manufacturers and models. 

After purchasing the bike and introducing it on the road, the two-wheeler gets exposed to many risks, including thefts and natural and artificial incidents. Therefore, to make sure that one’s bike is safe, one must purchase motorcycle insurance. This insurance adds a safety layer to the vehicle. You can ease this task by comparing bike insurance policies. 

Also, the IRDAI mandates two-wheeler owners to get bike insurance. Hence, driving a bike without a bike insurance policy in India is illegal. 

India, a country with a population increasing daily, bikes are one of the most prevalent vehicles. In metropolitan cities, bikes and bike-owners are prone to the risks of accidents on the road. 

As it is mandatory for all bike owners to have bike insurance before using the bike on the road, they must compare insurance policies to choose from the various types available. 

Governance of Bike Insurance Policy:

The average bike insurance policy covers the bike owner or the rider, or the policyholder, and the third party that is involved in the accident was caused by the bike owner. 

There are known to be two types of insurance policies, namely, comprehensive insurance and third-party insurance. 

Comprehensive Insurance: 

Comprehensive bike insurance provides complete protection and security for the owner, the third party, and the vehicle. 

Third-party insurance:

This type of policy provides security to the third party in an accident if the incident was caused by the vehicle owner. 

Comprehensive bike insurance involves the following losses and damages that may be caused to the bike:

  • Theft
  • Terrorist activity
  • Malicious acts
  • Self-ignition
  • Accidents
  • Fire Explosion 

 It also includes natural calamities like:

  • Cyclone
  • Flood
  • Lightning
  • Earthquake
  • Travel through road, water, or air
  • Landslide

The other advantage of comprehensive bike insurance is protecting the policyholder when they are badly injured while driving the vehicle or when someone else rides the two-wheeler. This insurance also covers the damages and losses of the third party in an accident if the accident was caused by the policyholder. This coverage of the third-party’s loss includes death, physical injury of the party, damage to the third-party’s vehicle in an accident due to the policyholder’s bike. 

Determinants of Cost of Insurance: 

There are various determinants of insurance cost. One must compare bike insurance policiesbased on the cost of insurance as well. The price depends on the sum of money that the policyholder pays in exchange for the benefits provided under the bike insurance policy. 

One must compare insurance policy based on the scope of the coverage provided by the insurance policy. The larger the extent of the insurance, the more detailed its nature is. However, when the extent of the coverage is large, the premium value to be paid is also high. 

The factors which influence the cost of an insurance policy are as follows

  • Manufacturer and model of the bike.
  • Insured Declared Value.
  • Engine capacity or cubic capacity of the bike.
  • Age of the bike.
  • Riding history and condition of the bike.
  • Add-on covers.
  • Age of bike owner.

These factors play an important role when one wants to buy a bike insurance policy. As per the model of the bike, the policy cost also differs. 

Also, one must ascertain the amount of insurance necessary before purchasing a bike insurance policy. If the owner wishes to provide security to themselves, the bike, and the third party, choosing the comprehensive policy is wise. One can also choose to regulate the changeable factors in a bike insurance policy. 


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