The thrill of the open road, the wind on your face, and the sense of adventure that comes with riding a motorbike are unparalleled experiences. Whether you’re a daily commuter or an adventure seeker, your motorbike is undoubtedly a cherished possession that deserves protection. While the Indian law mandates third-party bike insurance coverage, it may not be enough to shield you from the myriad of risks you face on the road. Motorbike accidents can be incredibly costly, both financially and emotionally. They result in substantial damage to the bike and injuries to the rider. With a majority of such incidents impacting both the vehicle and the rider, it becomes evident that comprehensive bike insurance is essential to mitigate potential risks effectively.
If you have plans to insure your new bike or want to renew the old one, it makes sense to know and understand the benefits of comprehensive bike insurance. Let’s dive deeper.
What is Comprehensive Bike Insurance?
Comprehensive bike insurance is a type of bike insurance policy that provides extensive coverage for your motorbike against a wide range of risks and perils. Unlike basic third party insurance, which is mandated by law in India and covers only damages to third parties involved in an accident, comprehensive insurance offers far more protection to the policyholder and their bike.
With comprehensive two wheeler insurance, you can have peace of mind knowing that your prized possession is safeguarded not only against third-party liabilities but also against damages resulting from accidents, theft, fire, natural disasters, and similar other unforeseen events.
Let’s break down various components of comprehensive bike insurance for better understanding:
- Third party coverage
Comprehensive bike insurance includes coverage for damages caused to third parties in case of an accident. This means that your insurance policy will cover the associated expenses if you’re at fault in an accident that causes injuries or property damage to others.
- Own damage coverage
One of the most significant advantages of comprehensive bike insurance is the coverage it provides for the damages to your motorbike. Whether it’s due to a collision with another vehicle, a stationary object, or any other accident, your insurance policy will pay for its repair or replacement costs.
- Theft and vandalism
This type of motor insurance also protects you against the unfortunate event of your motorbike being stolen or damaged due to vandalism.
- Fire and natural disasters
If your bike gets damaged or destroyed in a fire or any natural calamity, such as floods, earthquakes, or storms, comprehensive insurance will cover the repair or replacement costs.
- Personal accident cover
Many comprehensive policies also include personal accident coverage, providing compensation for injuries or even fatalities suffered by the policyholder in an accident.
- Add-ons and customization
Insurance providers also offer various add-ons that you can include in your comprehensive bike insurance policy for extra protection. These may include coverage for accessories, roadside assistance, engine protection, and more, which allows you to tailor the policy according to your needs.
While comprehensive bike insurance offers a higher level of protection, it is essential to keep in mind that its premium is higher than basic third party insurance. However, the additional benefits and coverage make it a wise investment for those who want to safeguard their bikes and financial well-being against potential risks on the road.
What are the Features and Benefits of Comprehensive Bike Insurance?
Comprehensive two wheeler insurance offers a wide range of features and benefits that go beyond the basic coverage provided by third-party insurance. Let’s explore them here in detail:
Comprehensive motor insurance provides coverage for a comprehensive list of risks and perils and offers protection against damages to your bike as well as third-party liabilities. This includes accidental damage, theft, fire, vandalism, natural disasters, and more.
Own Damage cover
One of the primary features of comprehensive bike insurance is that it covers the repair or replacement costs of your motorbike in case of an accident or collision, regardless of who is at fault. This ensures that you won’t have to bear the financial burden of repairing your bike in the event of an accident.
Like third-party insurance, comprehensive insurance also covers damages caused to third parties in case of an accident for which you are liable. This includes injuries to other people and damage to their property.
Theft and vandalism protection
Comprehensive insurance protects your bike from theft and damages caused by vandals. If your bike gets stolen or maliciously damaged, your insurance policy will cover the costs.
Coverage against natural disasters
Comprehensive two wheeler insurance safeguards your motorbike against damages caused by natural calamities such as floods, earthquakes, cyclones, and storms.
Personal accident cover
Many comprehensive motor insurance policies also include personal accident cover and offer compensation for injuries sustained by the policyholder in an accident. In unfortunate cases, it also provides financial support to the policyholder’s family in the event of the policyholder’s death due to the accident.
These insurance plans often come with add-on options that allow you to customize your coverage to suit your specific needs. Add-ons may include coverage for accessories, roadside assistance, engine protection, and more, providing additional layers of protection.
Peace of mind
With a comprehensive insurance plan by your side, you get peace of mind knowing that you and your bike are well-protected from a wide range of risks. It allows you to ride without worrying about the financial consequences of unforeseen incidents.
Compliance with regulations
In India, having at least third-party insurance is mandatory for motorbike owners. By opting for comprehensive bike insurance, you fulfill this legal requirement while also obtaining enhanced coverage.
If you do not make any claim during the policy period, many insurance providers offer a no-claim bonus. This can lead to a reduction in the premium during policy renewal or other benefits like increased coverage or additional discounts.
Who Should Buy Comprehensive Two Wheeler Insurance?
Comprehensive bike insurance is highly recommended for several groups of individuals, including the following:
- Motorbike owners
If you own a motorbike, regardless of whether it’s a high-end sports bike or a daily commuter, you should strongly consider getting comprehensive bike insurance. Owning a motorbike comes with its share of risks on the road, and comprehensive coverage provides protection against a wide range of potential hazards.
- Frequent riders
If you use your motorbike regularly for commuting, weekend rides, or long-distance trips, you are exposed to more road risks. Comprehensive bike insurance can offer you the peace of mind you need, knowing that you’re protected against various accidents and damages.
- Motorbike enthusiasts
For those who have a passion for motorbikes and take pride in their two-wheeled companions, comprehensive insurance is a must. It ensures that your beloved bike is well-protected from accidents, theft, and other unfortunate incidents, preserving your investment and passion.
- High-value bike owners
If you own an expensive or high-value motorbike, the cost of repairing or replacing it in case of damage or theft can be significant. Comprehensive insurance provides the necessary financial protection to cover these expenses.
- Urban riders
Riding a motorbike in busy urban areas exposes you to higher risks of accidents and collisions due to traffic congestion and other urban challenges. This is where comprehensive bike insurance acts as a safety net.
- Residents of high-crime areas
If you live in an area with a higher risk of bike theft or vandalism, comprehensive insurance can protect you from potential losses.
- Young or inexperienced riders
New riders or those with limited experience can benefit from comprehensive bike insurance to provide extra protection while they become more skilled and confident on the road.
- Individuals with financial liabilities
If you have financial responsibilities, such as paying off a bike loan or installment, comprehensive insurance is crucial to protect your asset until you clear off the debt.
- Safety-conscious riders
If you prioritize safety and wish to minimize any financial risk associated with motorbike accidents, comprehensive insurance aligns well with your safety-conscious approach.
In summary, anyone who owns a motorbike and wants to safeguard their vehicle and themselves against potential risks on the road should strongly consider purchasing comprehensive bike insurance.
How to Buy Comprehensive Bike Insurance?
You can purchase comprehensive bike insurance through three different modes, including online, offline, and insurance aggregators. Let’s explore the steps involved in each of these modes.
Online insurance purchase
Buying comprehensive bike insurance online has become increasingly popular due to its convenience and ease of use. Here’re the steps involved:
- Research: Start by researching different insurance providers and their policies online. Visit their websites or use insurance comparison websites to compare coverage, benefits, and premium rates.
- Fill in details: Once you’ve chosen an insurance provider, you’ll need to fill in your bike’s details and your personal information on the insurer’s website. Be accurate and thorough in providing the required information.
- Select coverage and add-ons: Choose the type of coverage you want, which in this case is comprehensive bike insurance. Additionally, select any add-ons you may require to enhance your coverage further.
- Review the policy: Before proceeding with the purchase, carefully review the policy terms and conditions. Make sure you understand the coverage, exclusions, and the claim process.
- Pay premium online: After reviewing the policy and ensuring all details are accurate, proceed to make the premium payment online. You can use various payment methods, such as credit/debit cards, net banking, or digital wallets.
- Receive policy documents: Once the payment is successful, you’ll receive the policy documents via email and/or in print format. Make sure to save and print these documents for future reference.
If you prefer a more traditional approach, you can buy comprehensive bike insurance offline through insurance agents or directly at the insurer’s office. Here’re the steps involved:
- Visit the insurer’s office: Locate the nearest branch office of the insurance company you wish to purchase the policy from.
- Consult with an agent: Talk to an insurance agent at the office and provide them with the necessary details about your bike and your coverage requirements.
- Discuss coverage options: The agent will present you with various policy options, including comprehensive bike insurance, along with any add-ons you may need.
- Fill out the application form: Complete the application form with accurate information about your bike and yourself.
- Pay the premium: Pay the premium amount in cash, cheque, or any other payment method accepted by the insurance company.
- Receive policy documents: Once the payment is processed, you will receive the policy documents physically and/or via email.
Through insurance aggregators
Insurance aggregators allow you to compare policies from multiple insurance companies in one place. Here’s how to buy comprehensive bike insurance through aggregators:
- Visit the aggregator website: Go to an insurance aggregator website that offers bike insurance comparison.
- Enter bike details: Enter your bike’s details and coverage requirements on the website.
- Compare policies: The aggregator will provide you with a list of insurance policies from different companies. Compare the coverage, benefits, and premiums.
- Choose and apply: Select the comprehensive bike insurance policy that best fits your needs and proceed to buy the same.
- Fill out the application form: Complete the application form with the necessary details.
- Make premium payment: Pay the premium amount online using the available payment options.
- Receive policy documents: Once the payment is successful, you’ll receive the policy documents via email.
Also Read: All About Bike Insurance Calculator
Why Buy Comprehensive Bike Insurance Online?
Buying comprehensive bike insurance online offers numerous advantages that make it a preferred choice for many individuals. Here are some compelling reasons why you should consider purchasing it online:
Buying insurance online is incredibly convenient. You can compare policies, get quotes, and complete the entire purchase process from the comfort of your home or office, at any time that suits you. There’s no need to visit a physical office or meet with agents.
- Easy comparison
You can compare coverage, benefits, and premium rates side by side, making it simpler to find the best policy that suits your specific needs and budget.
- Instant quotes
Online insurance platforms – be it official insurer’s website or aggregator platforms, offer instant quotes based on the information you provide. This gives you a quick overview of the premium for different coverage options and allows you to make an informed decision.
- Easy access to information
When buying insurance online, you have access to all the policy details, terms, and conditions at your fingertips. You can thoroughly review the policy before making a purchase and ensure you understand the coverage, exclusions, and claim process.
- Customization options
Online insurance purchases also provide add-ons and customization options. You can easily add extras such as personal accident cover, engine protection, roadside assistance, and more to tailor the policy to meet your specific requirements.
- Faster process
Online insurance purchases eliminate paperwork and reduce processing time. The policy documents are generated instantly after payment, and you receive them through email or can access them from your online account.
- Discounts and offers
Many insurance providers offer exclusive discounts and promotional offers for online purchases. You may find better deals and lower premiums when buying comprehensive bike insurance online.
- Transparent reviews
Online platforms often have customer reviews and ratings for various insurance providers. This can help you gauge the quality of service and customer satisfaction before making a decision.
- 24/7 support
Online insurance providers typically offer customer support around the clock. If you have any queries or need assistance during the buying process, you can get help instantly.
Comprehensive Bike Insurance Vs. Third Party Bike Insurance
|Comprehensive Bike Insurance
|Third-Party Bike Insurance
|Provides extensive coverage for your bike and third-party liabilities
|Covers damages to third parties involved in an accident only
|Own Damage Coverage
|Offers protection against damages to your bike regardless of fault
|Not included; you bear the cost of repairs to your bike
|Covers damages caused to third parties in case of an accident
|Only provides coverage for injuries and property damage to others; no protection for you or your bike
|Theft and Vandalism
|Protects your bike against theft and damages due to vandalism
|Not covered; you are responsible for any loss or damage from theft or vandalism
|Fire and Natural Disasters
|Covers damages caused by fire, floods, earthquakes, storms, etc.
|Not covered; you bear the costs if your bike is damaged by such events
|Personal Accident Cover
|Some policies may include personal accident coverage for the policyholder
|Not included; no coverage for injuries or fatalities to the bike owner
|Offers various add-ons like roadside assistance, engine protection, etc.
|No add-ons available; basic coverage only.
|The premium is higher due to the extensive coverage provided
|Lower premium as it offers limited coverage.
|Provides a robust safety net against various unforeseen incidents
|Offers limited financial protection; you may have to bear significant costs
|Recommended for bike owners who want comprehensive protection for their asset and themselves
|Suitable for those looking to meet the legal requirement of insurance without additional coverage
|Urban riders, frequent riders, high-value bike owners, and motorbike enthusiasts
|Riders on a budget or individuals with lower-value bikes who want basic legal coverage
|Ease of Purchase
|Can be easily purchased online, offline, or through insurance aggregators
|Flexibility to customize the policy with various add-ons and options
|Limited customization options available
|Peace of Mind
|Offers peace of mind knowing both your bike and you are well-protected
|Provides basic protection but may leave you vulnerable to significant expenses
Disclaimer: The comparison factors mentioned above are general guidelines and may vary depending on the specific insurance policy and provider. It’s essential to review the terms and conditions of each policy thoroughly before making a decision.
What Does Comprehensive Bike Insurance Cover?
Comprehensive bike insurance typically has the following inclusions:
- Coverage for damages to your own bike due to accidents, regardless of fault
- Protection against theft or attempted theft of your motorbike
- Coverage for damages caused by fire, explosions, or self-ignition
- Protection against damages caused by natural disasters such as floods, earthquakes, storms, etc.
- Coverage for damages due to malicious acts like vandalism or rioting
- Third-party liability coverage for injuries and property damage caused to others in an accident
- Personal accident cover for the policyholder, providing compensation for injuries or fatalities
- Add-on options for additional coverage, such as roadside assistance, engine protection, etc.
- Coverage for accessories and electrical/non-electrical fittings if they are damaged due to an insured peril
- Customization with various riders and endorsements to suit specific needs
What is Not Covered Under Comprehensive Two Wheeler Insurance?
Although comprehensive bike insurance provides extensive coverage, certain situations and events are excluded from the policy. Let’s explore the common exclusions in detail:
- Regular wear and tear
Comprehensive insurance for your bike does not cover damages that occur due to regular wear and tear or gradual deterioration of the bike over time. Such damages are considered part of the normal aging process and are the responsibility of the bike owner to maintain.
- Mechanical or electrical breakdown
Coverage is not provided for damages resulting from mechanical or electrical breakdowns of the bike. These issues are maintenance-related and are the responsibility of the bike owner.
- Driving under the influence
If an accident occurs while the rider is under the influence of alcohol, drugs, or any intoxicating substance, comprehensive bike insurance will not cover the damages. Riding under the influence is illegal and poses a significant risk, making it an exclusion in most insurance policies.
- Illegal activities or racing
Any damage or loss caused while the bike is involved in illegal activities or participating in races or speed contests is not covered. Engaging in such activities increases the risk of accidents and damages, making them ineligible for insurance coverage.
- Unlicensed riders
If the bike is being ridden by someone who does not have a valid driver’s license, any damages or accidents occurring during such rides are not covered under comprehensive bike insurance.
- Commercial use
Comprehensive two wheeler insurance is usually meant for personal use only. If the bike is being used for commercial purposes, such as delivery services or as a taxi, coverage may be excluded.
- Intentional acts or negligence
Any damages caused intentionally or due to the policyholder’s negligence are excluded from coverage. The insurance policy is designed to protect against unforeseen events, not intentional harm or carelessness.
- War, terrorism, and nuclear incidents
It does not cover damages or losses resulting from war, acts of terrorism, nuclear explosions, or any related events.
- Geographical limitations
Coverage may be limited to specific geographical areas mentioned in the policy. Any damages or losses occurring outside these boundaries may not be covered.
- Unauthorized modifications or alterations
Any changes made to the bike that are not approved by the manufacturer or the insurer can void the coverage.
- Depreciation and market value
Comprehensive bike insurance does not cover the reduction in the bike’s value due to depreciation over time or a decline in the market value.
- Lapsed or expired policy
Any claims made after the policy has expired or lapsed are not covered. It is essential to renew the policy on time to maintain continuous coverage.
It is essential to be aware of these exclusions to understand what is not covered under your comprehensive bike insurance policy. Also, these exclusions vary between insurance providers and policies.
What are Comprehensive Bike Insurance Add-ons?
Comprehensive bike insurance add-ons are additional coverage options that you can choose to enhance your standard insurance policy. These add-ons provide extra protection and customization, allowing you to tailor the insurance coverage according to your specific needs and preferences.
While the availability of add-ons may vary between insurance providers, here is a table covering 10 most common comprehensive bike insurance add-ons:
|Comprehensive Bike Insurance Add-ons
|Zero Depreciation Cover
|Allows you to claim the full cost of repairing or replacing damaged bike parts without factoring in depreciation. (Standard policies consider the depreciation of bike parts, which can significantly reduce the claim amount.)
|Engine Protection Cover
|Covers the repair or replacement cost of your bike’s engine in case of damage due to water ingression, oil leakage, or other mechanical failures; particularly useful in regions prone to flooding or heavy rains.
|Provides help in emergencies like breakdowns, flat tires, battery issues, or accidents and may include services like towing, fuel delivery, minor repairs, and assistance with a flat tire.
|Ensures that your No Claim Bonus (NCB) remains intact even if you make a claim and allows you to enjoy discounted premiums during policy renewal.
|Personal Accident Cover for Passengers
|Extends personal accident coverage to passengers riding pillion on your bike and provides compensation for injuries or death resulting from an accident.
|Covers the cost of consumables like engine oil, coolant, nuts, and bolts used during repairs (standard policies do not typically cover these costs).
|Return to Invoice
|Ensures that you receive the invoice value or the Insured Declared Value (IDV) in case of total loss or theft of your bike and bridges the gap between the IDV and the original invoice value of the bike.
|Provides compensation for the cost of alternative transportation (like renting a bike) while your bike is undergoing repairs due to an accident or theft.
|Key Replacement Cover
|Covers the cost of replacing or reprogramming the keys and locks if you lose your bike’s keys or they are stolen.
|Emergency Assistance Cover
|Provides additional support during emergencies, such as arranging for medical assistance, accommodation, or transportation in case of an accident away from your home.
What is NCB in Comprehensive Bike Insurance?
NCB stands for ‘No Claim Bonus’ and refers to the reward or discount given to policyholders who do not make any claims during their policy period. It is a benefit provided by insurance companies to encourage safe and responsible riding behavior among policyholders. The concept of NCB applies to various types of motor insurance, including bike insurance.
Here’s how NCB works in comprehensive two wheeler insurance:
- Accumulation of NCB
For every claim-free year, the policyholder earns an NCB which is cumulative and increases with each consecutive claim-free year.
- Discount on renewal premium
At the time of policy renewal, the accumulated NCB translates into a discount on the premium for the next policy period. The discount percentage may vary between insurance providers but generally ranges from 20% to 50% of the Own Damage (OD) premium.
- Transfer of NCB
NCB is associated with the policyholder and not the vehicle. This means that if the policyholder purchases a new bike or switches to a different insurance provider, they can transfer the accumulated NCB to the new policy. However, it’s essential to transfer the NCB within a specific time frame to retain the discount.
- Loss of NCB in case of claims
Filing a claim during the policy period results in the loss of the accumulated NCB. The policyholder’s NCB percentage is reset to zero, and they would lose the premium discount during the next renewal.
- Protecting NCB with an add-on
Some comprehensive bike insurance policies offer an NCB protection add-on. With this add-on, policyholders can make a specific number of claims without losing their accumulated NCB. It helps to safeguard the discount even after making a claim during the policy period.
- Duration of NCB
NCB remains valid for a specific number of years. In some cases, if the policyholder doesn’t renew the policy within a specified period (usually 90 days) after the policy expiration, the accumulated NCB may expire, and they will lose the benefit.
How is Comprehensive Bike Insurance Premium Calculated?
Comprehensive bike insurance premium is calculated based on various factors that assess the level of risk associated with insuring the bike. Insurance companies use these factors to determine the likelihood of the insured bike being involved in an accident or experiencing damage or theft.
Here are the key factors that influence the premium payable for comprehensive insurance:
- Bike’s IDV
The IDV is the current market value of the bike and serves as the maximum sum insured in case of total loss or theft. The premium is directly proportional to the IDV. Higher IDV will result in a higher premium and vice versa.
- Bike’s make, model, and Cubic Capacity (cc)
The make, model, and cubic capacity of the bike affect its overall value and performance. More expensive and powerful bikes may have higher premiums due to increased repair costs and higher risks associated with such vehicles.
- Age of the bike
As the bike gets older, its value depreciates, which can lead to a reduction in the premium.
- Geographical zone
The location where the bike is registered and primarily used affects the premium calculation. Areas with higher risks of accidents, theft, or natural calamities may result in higher premiums.
- Insured’s age and riding experience
The age and riding experience of the policyholder influence the premium. Older and more experienced riders may receive lower premiums as they are considered less risky.
- Add-On covers
The premium may increase if the policyholder chooses to add additional coverage through various add-ons, such as zero depreciation cover, engine protection, etc.
- Safety features and anti-theft devices
Equipping the bike with safety features like anti-lock braking system (ABS) and anti-theft devices may lead to a reduction in the premium, as they decrease the risk of accidents and theft.
- Policy term
The duration of the insurance policy, whether it is for one year or multi-year, also impacts the premium calculation.
Insurance companies may use actuarial data and complex algorithms to analyze these factors and determine the premium for comprehensive bike insurance. It is essential to provide accurate and complete information to ensure an accurate premium quote.
How to Reduce Comprehensive Two Wheeler Insurance Premium?
Reducing bike insurance premiums can help you save money while still maintaining essential coverage. Here are some effective ways to lower your bike insurance premium:
- Opt for a higher voluntary deductible to bear a portion of the repair costs in case of a claim. This reduces the insurer’s liability, resulting in a lower premium.
- Maintain a clean riding record with no accidents or claims to earn NCB and significantly reduce your premium.
- Equip your bike with safety features like anti-lock braking system (ABS), anti-theft devices, or GPS trackers to get premium discounts, as they reduce the risk of accidents and theft.
- Park your bike in a secure and monitored area, such as a garage or parking lot to reduce the risk of theft.
- Choose add-ons wisely and select the ones that are essential to your needs and avoid unnecessary ones.
- Renew insurance plan online as it saves administrative costs for the insurer, which may lead to lower premiums.
- Obtain quotes from multiple insurance providers and compare the coverage and premiums. This way, you can find the most competitive offer that suits your requirements.
- Opt for multi-year insurance policies.
- Consider paying for minor repairs out of pocket instead of making small claims, as frequent claims can lead to higher premiums during renewal.
- If you have multiple insurance needs (such as bike and car insurance), consider bundling them with the same insurer. Insurers often provide discounts for multiple policies.
- Ride safely to reduce the risk of accidents.
Remember that while reducing the premium is essential, it’s equally crucial to ensure that your insurance policy provides adequate coverage for your needs. Balancing cost savings with sufficient protection is the key to finding the right bike insurance policy for you.
What is IDV in comprehensive bike insurance?
IDV stands for Insured Declared Value and it is the current market value of your bike. It represents the maximum sum insured in case of total loss or theft. The premium is calculated based on the IDV.
How is the premium for comprehensive bike insurance calculated?
The premium for comprehensive bike insurance is determined based on factors such as the bike’s IDV, make, model, age, geographical zone, insured’s age, claims history, add-ons, safety features, and policy term.
Is personal accident cover included in comprehensive insurance?
Most comprehensive two wheeler insurance includes personal accident cover for the policyholder. It provides compensation for injuries or death resulting from an accident while riding the insured bike.
Can I transfer NCB to a new bike insurance policy?
Yes, NCB can be transferred from one bike insurance policy to another. It is associated with you (policyholder) and not your vehicle.
Can I avail of discounts on comprehensive insurance premiums?
Insurance providers offer various discounts like NCB, voluntary deductibles, installation of safety features, online renewal, policy bundling, etc., to reduce the premium cost.