A bike insurance policy is a wise choice if you want to safeguard your hard-earned savings. Being a bike owner, it is mandatory by law that you have a third-party bike insurance plan. Whereas, buying a comprehensive plan is a choice that you make based on your requirements and budget.
But do you know what’s covered and what’s not under both these policies? Let’s discuss the coverage so you can take an informed decision.
Types of Bike Insurance Plans – What’s Covered & What’s Not
Third-Party Bike Insurance Plan
It is compulsory in India to buy this plan if you own a bike. This policy allows the bike owner to pay compensation amount to a third-party affected by way of injury, damage to property, and unfortunate death in an accident caused by your bike.
Below is a list of what is covered under the third-party bike insurance plan:
- Third-party property damage
- Bodily injury, permanent disability, or death
- Accidental death of the owner/driver of the insured vehicle (only if personal accident cover is available in third-party bike insurance coverage)
Also check out what’s not covered:
- Any damage caused to the vehicle of the policyholder
- Damages caused to the vehicle outside the geographical limit of the policy
- Damages caused due to reasons like radioactive contamination, war, or nuclear weapons
Do remember though that the claim amount under third-party insurance policy may vary from insurer to insurer based on their terms & conditions. Moreover, claims are approved only if your insurance policy is active during the time of the accident. Also claims can be rejected if you were riding without a valid driving license, under the influence of alcohol or violated any traffic rules leading to the accident. It’s a good idea to go through the policy documents to understand the benefits, coverage and exclusions of the policy.
Comprehensive Bike Insurance Plan
A comprehensive bike insurance plan brings together the advantages of having both a third-party plan as well as covering the damage of your own vehicle as well. Because this is a comprehensive plan and offers wider coverage, it does have higher premiums.
Below is a list of what is covered under a comprehensive bike insurance plan:
- Damage or Loss Due to Natural and Manmade Calamities
- Own Damage Cover that covers damages to the policyholder’s vehicle
- Third-Party Liability
- Explosion and Fire
See what’s not covered under the comprehensive bike insurance plan:
- Regular wear and tear of the vehicle
- Mechanical or electrical breakdown of the insured vehicle
- When the vehicle was being driven without a valid driving license or an active bike insurance policy
- The accident occurred when the driver was under the influence of alcohol or drugs
- Any loss or damage due to mutiny, war, or nuclear attacks, etc.
It’s interesting to note here that when you take a comprehensive plan you also have the option to choose from a host of add-on covers that enhance the coverage on your bike.
Add-on Covers That Can Help you Enhance your Bike Cover
Add-ons are covers that you buy additionally if such a cover is not included under your basic bike insurance policy. All you need to do is pay a minimal additional premium to enhance your bike’s insurance coverage.
Here we have mentioned a list of add-on covers that you can buy:
- Roadside assistance cover
This add-on cover protects you in case you are stranded while travelling on your bike without any mechanic help. You get assistance for fuel delivery, towing, flat tyre, battery drain, and other minor repairs.
- Consumables cover
With this add-on you get coverage benefits for nuts, bolts, oil filter, brake oil, fuel, etc.
- Key loss cover
This cover may come in handy in case you lose your vehicle keys. You get a spare key as a replacement.
- Zero depreciation cover
A zero-depreciation cover reduces your stress of bearing the depreciation expenses of your bike, so that in case you do need to raise a claim, you can get the amount without any depreciation related deductions.
- Engine protection cover
This add-on cover offers protection against damaged engine of your vehicle. This is a good cover to buy in case you reside or work in an area that is prone to water logging.
- Tyre damage cover
You get repair assistance in case your bike’s tyre is damaged (puncture or bursting of tyres, in-tyre bulge, cut on a tyre due to an accident, etc.)
- Return to invoice cover
In case your vehicle suffers total loss/ damage, you will get the full invoice price of your bike with the help of this Return to Invoice cover.
When buying a bike insurance policy, it is must that you check the policy terms and then make an informed decision. We hope you now have all the required information regarding a bike insurance policy. If you want to know more, or wish to explore more insurance plans, you can download our Bajaj Finserv App.
Anywhere, Anytime insurance with the Bajaj Finserv App
The Bajaj Finserv App is a high utility App that takes care of all your financial needs including insurance. On the app, you can explore bike insurance plans from our trusted partners. Here you can view product features, compare prices and purchase a plan that is best suited to your needs. All this in a matter of minutes on our 100% digital platform and from the comfort of your home. It truly is becoming the new way to buy insurance.