What Are the Types of Bike Insurance in India?

Keen to learn more about the different types of bike insurance plans in India? You have come to the right place.

Riding a two-wheeler brings freedom from several constraints. You need not be at the mercy of unreliable public transport, overcharging auto-rickshaws or time-consuming cab-hailing trips. Two-wheelers are preferable for commutes to work or place of study as they have the additional advantages of easy manoeuvrability and convenient parking. These are useful in congested conditions in India.

Owning a bike is also about being a responsible driver. Besides following the road rules and proper etiquette towards other road users, proper documentation such as holding a valid driving licence and insurance cover for the bike is essential. In addition to the mandatory requirement, the convenience to buy bike insurance online should enable you to always be mindful that your policy is current as you ride out your bike on the road.

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What is bike insurance?

When you ride your bike on public roads, you are essentially exposing yourself and others to certain risks such as accidents, collisions etc. These events may happen either due to inexperience or negligence. In either case, total or partial damage to the bike and injury or even loss of life of the drivers involved can occur. In order to safeguard against such unfortunate events, bike insurance is a mandatory requirement.

In a bike insurance policy, the insurer promises to make good any expenses or liabilities that arise in respect of the insured bike. The policy is a contract between the insurance company and the policyholder wherein the former offers insurance coverage in return for the regular and timely premiums paid by the latter. The extent and nature of coverage offered under a bike insurance policy will depend on the type of two-wheeler insurance opted for.

What are the types of two-wheeler insurance in India?

There are three primary types of bike insurance plans in India:

  1. Third-Party Liability-Only Bike Insurance
  2. Standalone Own Damage (OD) Bike Insurance
  3. Comprehensive Bike Insurance
  • Third-Party Liability-Only Cover: In India, the Motor Vehicles Act specifies that a bike should be insured for any liability that might arise due to any loss or damage suffered by third parties in an accident caused by the insured bike. This type of bike insurance plan is popularly called a third-party bike insurance. Under this policy, if the insured bike is responsible for causing an accident, then any damage to the third-party vehicle and injury or loss of life of the third party shall be reimbursed.

    You can see that the third-party liability cover does not include loss or damage to the insured bike. In any accident, the insured bike could suffer some damage and the rider of the insured bike too could sustain some injuries. In order to meet the expenses of the insured bike, you should purchase either a standalone own damage policy or a comprehensive bike insurance policy.

  • Standalone Own Damage Cover: An Standalone Own Damage Two-Wheeler Insurance policy is a type of bike insurance policy that covers the damages caused to the insured two-wheeler. It covers damages caused by natural and man-made calamities, theft of the bike and total damage of the bike (damaged beyond any repairs). However, this policy does not cover any third-party liabilities. As a result, this policy can only be bought together with the legally mandatory third-party liability cover.

  • Comprehensive Two-wheeler Insurance: This policy, as the name suggests, offers comprehensive 360-degree protection not only to your bike but for you as well as against any third-party liabilities. A Comprehensive Two-Wheeler Insurance is a type of two wheeler insurance that offers an own-damage cover for the insured bike, coverage against any legal and financial third-party liabilities and personal accident cover to the owner-driver. Additionally, you can get targeted coverage against specific circumstances by including a list of unique add-ons with your policy. The popular add-ons are Zero Depreciation Cover, Roadside Assistance Cover and so on.

What are the differences between the types of bike insurance coverage?

As you are aware, there are three types of two-wheeler insurance coverage. These are third-party liability, own damage and comprehensive coverage. In the table below, you can see the main points of difference among the types of coverage:

Third-party liability Standalone own damage Comprehensive coverage
Covers the loss suffered by third parties due to the accident caused by the insured bike Also called first-party coverage, it reimburses the damage to the insured bike and offers personal accident cover of ₹15 lakhs to the owner-driver of the bike Covers the damage to both third parties and the insured bike
Mandatory for riding as per the Indian Motor Vehicles Act. Optional Optional
Premium rates fixed annually by the IRDAI Premium rates fixed by the insurer Premium rates are composed of IRDAI-specified rates plus insurer-specified rates
IDV of the vehicle is not a relevant attribute to determine the sum assured. IDV of the vehicle is a relevant attribute to determine the sum assured. IDV of the vehicle is a relevant attribute to determine the own damage coverage part of the policy.
Standard premium rates Slightly higher premium cost Optimal cost for the coverage assured
Add-ons not available Add-ons not available Add-ons not available
The Motor Accident Tribunal finalizes the amount payable under the claim The insurer finalizes the amount payable under the claim based on the surveyor's report The insurer finalizes the amount payable under the claim based on the surveyor's report for the own damage claim. Third parties get the reimbursement under the Tribunal's final award.
Damage to the insured bike due to theft, natural calamities, riot is not covered Damage to the insured bike due to theft, natural calamities, riot is covered ADamage to the insured bike due to theft, natural calamities, riot is covered

How can I purchase bike insurance?

The easiest method is to purchase online insurance for a two-wheeler. It eliminates unnecessary delay and completes the process in a safe and transparent manner from insurance company websites or from insurance aggregator websites.

You can opt for TATA AIG bike insurance and get your new policy or renewal policy in a few easy steps.

  • Go to the Bike Insurance page.
  • Enter the Registration Number and click on ‘Get Price’.
  • Verify the fetched information. Provide the choice of IDV, any claim details, NCB details and add-ons.
  • Pay the premium as displayed on the screen.

How do I know my bike insurance type?

You can check the status, tenure and type of your bike insurance by:

  • Visiting the Self-Service section of our website. Click on ‘Download Policy’. Enter your registered mobile number and confirm. You can check the policy type in the downloaded policy document.
  • Visiting the official website of the Ministry of Road Transport and Highways at https://parivahan.gov.in. When you enter the registration number of your bike, it will verify the status of your bike insurance policy and show the date until which it is valid. It also displays the type of policy that you have purchased.

Conclusion

Driving your vehicle is definitely an experience you wish to have. You can accomplish this with proper protection that includes adequate riding gear, proper maintenance of the bike and adhering to road rules. The most important aspect is keeping your bike safeguarded with the right type of bike insurance plan.

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