What Does Bike Insurance Covers & And How Much Does It Cost?
If you are an owner of a two-wheeler, you must know that riding your vehicle without a bike insurance policy is illegal in India. The Insurance Regulatory and Development Authority of India (IRDAI) – the authority that regulates insurance companies across India – made it mandatory to have motor insurance in 1988
We are going to answer these questions in this article.
As India is a populous country and sees the frequent use of bikes, especially in the metropolitan cities, two-wheeler vehicle owners are at a greater risk of accidents and damage. To regulate the number of accidents and protect the rider, the IRDAI passed this directive in the Motor Vehicles Act, 1988. Now, all bike owners have to get bike insurance before they can operate their vehicle. But what does bike insurance have to offer the rider, and how much does it exactly cost?
What does a bike insurance policy cover?
Bike insurance covers the bike owner/rider/policyholder and the third-party involved in an accident caused by the bike owner. Typically, there are two types of bike insurance policies:
Comprehensive insurance: It provides all-round protection to the owner, the vehicle and the third-party. Third-party insurance: It simply protects the third-party involved in an accident caused by the owner’s two-wheeler.
Tata AIG provides comprehensive coverage in its Tata AIG Bike Insurance Policy.
Comprehensive bike includes coverage for loss or damage caused to the owner’s bike/ two-wheeler from:
- Theft or burglary
- Malicious acts
- Terrorist activity
- Fire explosion
Natural disasters such as:
- Lightning, and more
- Travel through air, road, rail, or water.
It also protects and reimburses the policyholder from bodily injury or harm caused by the accident while driving or being a co-driver.
Moreover, it takes care of the damage or loss caused to a third party involved in an accident caused by the policyholder. Third-party coverage provides coverage for death, physical injury, and damage caused to their vehicle due to an accident caused by the policyholder’s two-wheeler.
What is the cost of two wheeler insurance?
If you are a bike owner looking to buy bike insurance from Tata AIG, you might wonder how much does bike insurance cost. The cost of bike insurance depends on the monetary sums you pay in exchange for the benefits under a bike insurance policy. These monthly or annual sums are called bike insurance premiums. The larger the extent and the more detailed the nature of insurance is, the higher the value of premiums you need to pay. At Tata AIG, the scope of insurance you need and the premiums you have to pay will depend on various factors, such as:
Insured Declared Value: This is the current market value of the bike. Basically, IDV is the sum assured of your bike insurance policy. This is the amount you will receive if your bike is stolen or if it is damaged beyond repair. The IDV is determined by a host of factors like the model of the bike, the manufacturer, age, engine capacity, riding history, claim history, etc.
The make and model of your bike: The make and model of your bike go a long way in deciding the premium value of your policy. For instance, the premiums for standard bike models cost lesser as parts for its repair and replacement are available easily. However, premiums for luxury or sports bikes costs higher as any repair will be costly.
Engine capacity or cubic capacity (cc): The engine capacity of your bike indicates the volume of the cylinders in the engine. The larger the engine is, the more is its cc and power. Hence the higher is the cost of maintenance. This leads to a higher charge in premiums for bikes having a high cc and lesser costs for bikes having a lower cc.
Age of your bike: The older your bike is, the lower will be the premium. Newer models have higher chances of getting stolen. Also, the replacement parts for newer models are slightly costlier. Also, the market value of newer bikes is higher than the older ones, which pushes up the IDV. Considering all this, the premiums for new two-wheelers are higher.
Your bike’s riding history/condition: How you maintain and operate your bike influences the premiums. For instance, if you spend more time riding the road, your premiums will be higher. If you add flashy modifications to your bike and make it more prone to theft, you can be charged more premiums. If you ride safely for a year after getting bike insurance, you will also receive a no-claim bonus that discounts the premium rate of your policy.
Add-on covers: Bike insurance also comes with add-on covers/riders such as the Zero Depreciation Cover and the Roadside Assistance Cover that enhance the level of protection given to your bike.
Your age: When it comes to riding a bike, the older you are, the more experience you have in riding. So, older policyholders are charged lesser premiums while younger ones are charged more.
All these factors will play an important role in deciding the cost of your bike insurance policy, and as per your bike’s model, your insurance policy cost will differ. However, the average cost of a bike insurance policy in India ranges between ₹1,000 – ₹5,000. Insurance costs can even go as low as ₹500 per policy year.
How much two wheeler insurance do I need?
Before you purchase Tata AIG’s two-wheeler insurance policy, you should have a clear idea of how much insurance you need. If you wish to secure yourself, your vehicle, and any third-party involved, it is better to go for a comprehensive insurance policy. Ultimately, going for a comprehensive insurance policy is wise as it provides extensive coverage at slightly higher costs than a standard insurance policy.
Several factors that influence the cost of bike insurance, such as your age, the engine capacity of your bike and its make and model, are fixed. However, the frequency of your rides, the number of add-ons you require, and how you maintain it all depend on you and influence how much insurance you need. You can always choose to regulate the changeable factors and lower your bike insurance cost.