When you buy a new bike, the first thing you think about is getting it on the road as quickly as possible. In the meantime, you should also consider a non-negotiable aspect: bike insurance. For a novice driver, terms such as IDV (Insured Declared Value), NCB (No Claim Bonus) and coverage of third-party damage against your own damage sound like technical factors.
In this blog we explain the individual terms and show you how you can take out your first insurance policy for your bicycle.
The basics of bike insurance in India
Bicycle insurance serves to provide financial protection against the risks associated with riding a two-wheeler. As per the Motor Vehicles Act 1988, every two-wheeler in India must have minimum third party insurance. There are mainly three types of two-wheeler insurance policies including:
- Liability insurance: This coverage protects third parties from bodily injury or property damage caused by your vehicle. This insurance coverage is required by law.
- Own damage protection: This insurance protection offers protection for your own vehicle against theft, damage and total loss. However, you need to purchase third-party two-wheeler insurance separately.
- Comprehensive coverage: This policy includes coverage for third-party damage as well as personal damage. This will keep you protected by both complying with legal regulations and ensuring complete protection for your vehicle.
Factors to consider before purchasing a policy
There are several factors associated with comprehensive bike insurance. Here’s a quick look at each of them:
- Insured Declared Value (IDV): The IDV indicates the current market value of your two-wheeler and is the maximum amount you will receive if your vehicle is totaled or stolen.
- No-Claim Bonus (NCB): The No-Claim Bonus is the cumulative bonus that policyholders receive from the insurer if they do not make a claim in a policy year.
- Add-on Coverages: Add-ons are optional coverages to the basic plan. It expands the scope of insurance coverage in terms of engine protection, consumables coverage, roadside assistance, etc.
- Network workshops: Every insurer has a network of workshops where your vehicle will be repaired at the insured value.
- Term of the policy: Liability insurance of at least five years is mandatory for new bicycles.
Common additional coverage for first-time buyers
Add-ons are optional coverage on top of your basic policies. Common add-ons include:
- Zero Loss of Value Coverage: For standard damage, depreciation is applied to bike repairs and you pay a portion of the replacement costs. This add-on minimizes the loss in value of your vehicle.
- Engine protection: Engine protection is not included in many basic insurance policies. This addition expands the scope of your two-wheeler engine insurance in the event of damage.
- Roadside Assistance Insurance: This add-on provides on-demand assistance if your bike unexpectedly breaks down.
- Consumables Coverage: Consumables such as engine oil, nuts, bolts, lubricants and coolants are often excluded from claims. This insurance coverage also includes consumables in the event of damage.
For example, insurers like HDFC ERGO offer you a diverse range of bike insurance options as well as the option to add several additional benefits. They also offer policyholders more than 2,000 cashless workshop networks across India.
Step-by-step instructions for purchasing new bicycle insurance online
Purchasing bike insurance involves the following simple steps. This is how you can get your first bike insurance:
- Visit the insurer’s website.
- Enter your bike details, e.g. B. Bike number, brand, variant, registration city and RTO as well as registration year, model, variant and registration information.
- Select the policy type.
- Customize it to your needs with add-ons.
- Review all policy details.
- Complete the payment via Credit/Debit Card, Net Banking, UPI or any other available option.
- Obtain the insurance documents, keep them in a safe place and print them out.
*The actual process may vary slightly depending on the insurer.
Final thoughts
Getting your first bike insurance is not a very complex task. With just a few details about your IDV, NCB, insurance types and add-ons, you can easily book your car insurance policy. In addition, by intelligently combining two-wheeler insurance and the required additional services, you can put together the most suitable insurance policy for your bike.
Read more:
New online bike insurance for first-time buyers in India: A structured approach to getting started
