Physical Damage Coverage in Bike Insurance

Since third party bike insurance is mandatory in India, many bike owners opt for it to comply with the legal requirement. However, these policies do not cover the cost of repairs for damages to the insured two-wheeler. This cover is available in policies that offer physical damage coverage. While these policies are not mandatory, they offer coverage for physical damage to the insured bike due to an accident, collision, disaster (natural or man-made), and fire. They also reimburse the Insured Declared Value (IDV) of the two-wheeler if it is damaged beyond repair or stolen.

When you purchase a third party bike insurance policy, you get protection from damages to a third-party person or property if your bike is involved in an accident. However, during such accidents, your bike can get damaged too. The third-party insurance policy for bikes does not cover the damages to the insured vehicle. Hence, you have to bear the costs of repairs or replacement of parts. Buying a Physical Damage cover offers financial protection from such costs.

There are two types of bike insurance policies that offer coverage for physical damage to the insured bike:

Standalone Own Damage bike insurance policy

If you have already purchased third party bike insurance and want coverage for physical damage to your bike, then you can opt for a Standalone Own Damage bike insurance policy. This policy offers coverage for damage to the insured bike due to an accident, collision, disaster (natural or man-made), and fire. They also cover the total loss of the bike due to damage or theft.

Comprehensive Bike Insurance policy

This is an exhaustive insurance policy for bikes that offers coverage for third party damages and physical damage to the insured bike. It is a combination of a Standalone third party bike insurance policy and a Standalone Own-Damage bike insurance policy. Hence, it offers coverage for third-party liabilities and physical damage to your bike.

If you opt for a two wheeler insurance policy that offers coverage for physical damage to the insured bike, then it usually covers:

Damages due to a bike accident – The insurer will cover the costs of repair and/or replacement of parts if the insured bike gets damaged during an accident.

Damages due to natural and man-made disasters – The policies offer coverage for damage to the insured bike due to natural disasters like floods, earthquakes, etc., and man-made disasters like riots, terrorist activities, etc.

Damages due to a fire or explosion – The insurance provider offers coverage for damage to the insured bike due to a fire or explosion

Total Loss – If the insured bike is damaged beyond repair, then the insurer reimburses the IDV of the vehicle minus depreciation and deductibles. Even if the damages are so severe that the repair costs cross 75% of the IDV, insurance companies treat it as a total loss.

Theft – For proven bike theft, the insurer reimburses the IDV of the vehicle minus depreciation and deductibles.

Here are some of the common exclusions for a Physical Damage coverage insurance policy for bikes:

• Damages due to mechanical or electric breakdown or malfunction
• If you meet with an accident while riding the bike under the influence of an intoxicating substance, then the physical damages to your bike will not be covered
• Any damage caused due to a war-like situation
• Damages due to the regular wear and tear of the two-wheeler
• If the bike is involved in an accident due to non-adherence to traffic rules, the insurer will not offer coverage
• Damages due to the bike being involved in a criminal activity
• Any damage sustained outside the permissible geographical limits

You need to remember that while a Standalone Own-Damage and Comprehensive two wheeler insurance policy offer coverage for physical damages to the insured bike, the coverage is subject to the terms of the policy. Hence, make sure that you go through the inclusions, exclusions, and other policy terms before buying.

At Tata AIG, we offer third party bike insurance as well as exclusive own damage coverage for insured bikes at highly affordable rates. You can choose from a range of riders or add-on covers to customize the policy as per your needs. You can also use our online calculator to estimate the premium of the policy and tweak it to buy the perfect 2 Wheeler Insurance Online.

While a two wheeler insurance policy that offers physical damage coverage for the insured bike is not mandatory in India, we recommend bike owners opt for it as they can save on repair expenses in the future. With a constant increase in the number of road accidents and the number of vehicles on the roads, collisions or accidents cannot be ruled out. Hence, it is prudent to create a financial safety net to manage any such exigency with ease.

Q1. Which policy should I buy to get physical damage coverage with my bike insurance?

If you need coverage for physical damages to your bike, then you can either opt for a Standalone Own-Damage policy with the Standalone third party bike insurance policy, or a Comprehensive Bike insurance policy that offers coverage for third-party liabilities plus damage to the insured bike.

Q2. Which add-on covers would be ideal for optimum physical damage coverage?

While you should choose add-on covers based on your specific needs, some of the most preferred ones are:

• Roadside Assistance for emergency services during bike breakdowns
• Zero Depreciation for negating the impact of depreciation on the claim amount, etc.