Understanding Types of Bike Insurance Options

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Posted Dec 31, 2024

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If you're a bike enthusiast, you know how important it is to have the right protection for your two-wheeler. There are various types of bike insurance options available, each with its own set of benefits and limitations.

Comprehensive insurance, for instance, covers damage to your bike from accidents, theft, and natural disasters. It's a good idea to opt for this type of insurance if you want to ensure your bike is protected against all sorts of risks.

Third-party insurance, on the other hand, is a more affordable option that covers damage to other people's property or injury to others in the event of an accident. This type of insurance is a legal requirement in many countries.

Personal accident insurance is another type of bike insurance that covers medical expenses in case of an accident. It's a good idea to consider this option if you plan to ride your bike frequently or in high-risk areas.

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Types of Bike Insurance

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There are two main types of bike insurance in India: third-party insurance and comprehensive insurance. Third-party insurance is mandatory and provides basic coverage for third-party liabilities, including injuries and property damage.

You can choose from different engine cubic capacity options for third-party insurance, with premiums ranging from ₹538 for bikes under 75cc to ₹2,804 for bikes exceeding 350cc.

Comprehensive insurance, on the other hand, offers wider coverage that includes damages to your own bike, as well as third-party liabilities. It's not mandatory but highly recommended for complete protection.

Here's a brief comparison of the two types of insurance:

Type of InsuranceCoveragePremium
Third-PartyThird-party liabilities₹538 - ₹2,804
ComprehensiveOwn bike damages and third-party liabilitiesMore expensive than third-party

Keep in mind that third-party insurance doesn't cover damages or injuries to the rider or insured bike, while comprehensive insurance provides more extensive coverage.

Comprehensive

Comprehensive bike insurance is the all-in-one policy that provides protection against all types of legal liabilities. It covers your own damages and third-party liabilities, giving you peace of mind while riding your bike.

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This policy is highly recommended, but not mandatory by law. According to Example 10, Comprehensive Bike Insurance is not mandatory but highly recommended.

Comprehensive insurance covers both damages you cause to others and damage to your own bike, including theft, accidents, and natural disasters, as stated in Example 9.

In this policy, you can add optional riders such as zero depreciation cover, engine protection, key replacement, and more at an extra premium cost, as mentioned in Example 7.

Comprehensive bike insurance costs the most but offers extensive coverage, making it a worthwhile investment for those seeking complete protection for themselves and third parties, as stated in Example 10.

Insured Declared Value (IDV)

You can now view your bike insurance premium after setting the Insured Declared Value (IDV).

Step 4 is where you can now view your bike insurance premium.

Zero Depreciation Coverage

Zero depreciation coverage is a type of add-on cover that eliminates the deduction of depreciation value when making a bike insurance claim. This means you'll receive the full claim amount without any reductions.

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Depreciation is the decrease in the value of your bike over time due to normal wear and tear. With zero depreciation coverage, all your bike's parts are insured at 100% except for tyres, tubes, and batteries, which are covered at 50% depreciation.

New motorists, new owners of two wheelers, people who reside in accident-prone regions, and those who own expensively equipped luxury two wheelers should consider opting for zero depreciation coverage. This is because it provides them with complete protection against depreciation and ensures they receive the full claim amount.

Zero depreciation coverage is usually beneficial for bikes less than 5 years old and can be added to comprehensive bike insurance or a standalone own damage two wheeler insurance policy. However, there may be voluntary and compulsory deductibles whenever you make a claim.

Here's a comparison of zero depreciation and return to invoice coverage:

FactorZero DepreciationReturn to Invoice (RTI)
DefinitionEliminates depreciation deduction in claim settlementProvides a lump-sum claim amount based on IDV in case of theft or damage beyond repair
Coverage DurationUp to 5 yearsUp to 3 years or less
Who is it For?Bikes less than 5 years oldNew bikes or bikes below 3 years old

Zero depreciation coverage is available as an add-on to your basic bike insurance plan, and you must add it to receive the total bike insurance claim settlement amount without any reductions.

Make and Model

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The make and model of your bike are key factors in determining the cost of insurance. Generally, high-end or sports bikes have higher premiums because they're costly to repair or replace.

For example, insuring a premium sports bike like the KTM Duke will cost more than a standard commuter bike like the Hero Splendor Plus. The difference in price can be significant, so it's essential to consider your bike's value when choosing a policy.

Some bikes, like the Royal Enfield Classic, have a higher insurance cost due to their unique features and higher repair costs. On the other hand, more affordable bikes like the Hero HF Deluxe tend to have lower premiums.

Here's a rough breakdown of the insurance costs for some popular bike models:

Bike ModelInsurance Cost (approximate)
KTM DukeHigher (due to high-end features and repair costs)
Hero Splendor PlusLower (due to standard commuter bike features)
Royal Enfield ClassicHigher (due to unique features and high repair costs)
Hero HF DeluxeLower (due to affordable features and lower repair costs)

Remember, these are just rough estimates, and your actual insurance cost will depend on various factors, including your location, riding habits, and policy choices.

Usage of the Bike

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Using your bike regularly can lead to a higher premium, as you'll be more likely to file a claim. This is because bikes that are ridden frequently are more prone to accidents and damage.

If you're a casual rider, you may be able to get away with a lower premium. However, this depends on the type of bike you have and your riding habits.

Some bike insurance policies offer discounts for bike owners who install anti-theft devices, such as GPS tracking systems or locks with alarms. These devices can deter thieves and reduce the risk of your bike being stolen.

Regular maintenance is essential to keep your bike in good condition and reduce the risk of accidents. This includes checking the brakes, tires, and chain, and making any necessary repairs.

If you're involved in an accident, having comprehensive bike insurance can help cover the cost of repairs or replacement. This can include damage to your bike, as well as any damage you cause to others or their property.

Key Features and Benefits

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HDFC Ergo Two Wheeler Insurance offers up to 70% savings on premium. You can customize your bike insurance policy with unique add-ons like zero depreciation, emergency roadside assistance, and more.

The policy has a 100% claim settlement ratio. This means that if you make a claim, you're likely to get it settled. With HDFC Ergo, you can get your bike repaired anywhere and anytime, thanks to their door-step two-wheeler repairs service.

Here are some of the key features of HDFC Ergo Two Wheeler Insurance:

FeatureBenefits
Savings on PremiumUp to 70%
Claim settlementAI-enabled tool IDEAS
Own Damage CoverCovers accident & natural or man-made calamities
Third Party Damage CoverCovers third party injuries and property damages
Choice of Unique Add-onsCustomise bike insurance policy with by selecting choice of add-ons like zero depreciation, emergency roadside assistance, etc.
Claim Settlement Ratio100% Claim Settlement Ratio^

You can also get a personal accident cover up to ₹15 lakhs. The policy is available online, and the buying and renewal process can be completed in less than 3 minutes.

Own-Damage

With own-damage bike insurance, you can get financial compensation for damages to your insured bike. This type of coverage is a must-have for any bike owner.

The HDFC Ergo Two Wheeler Insurance offers up to 70% savings on premium, making it an affordable option. You can also customize your policy with unique add-ons like zero depreciation, emergency roadside assistance, and more.

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If your bike is damaged in an accident or due to natural or man-made calamities, you can get it repaired for free or at a low cost. This is possible with HDFC Ergo Two Wheeler Insurance, which covers damages to the insured bike.

The coverage also extends to any damage caused to the bike due to natural or man-made calamities. You can get up to ₹15 lakhs of personal accident cover with HDFC Ergo Two Wheeler Insurance.

Here are some key features of own-damage bike insurance:

FeatureDescription
Covers accident & natural or man-made calamitiesHDFC Ergo Two Wheeler Insurance covers damages to the insured bike due to accidents or natural/man-made calamities.
Door Step Two Wheeler RepairsHDFC Ergo Two Wheeler Insurance offers door-step two-wheeler repairs, making it convenient for you to get your bike repaired.
Emergency Roadside AssistanceHDFC Ergo Two Wheeler Insurance provides emergency roadside assistance, ensuring you can get your bike repaired anywhere and anytime.

The HDFC Ergo Two Wheeler Insurance also offers a 100% claim settlement ratio, ensuring you get the compensation you deserve. You can buy the policy online in less than 3 minutes, and it starts at ₹538.

Emergency Assistance

Emergency Assistance is a valuable add-on cover that can provide support in case of a breakdown on the highway. This cover is particularly beneficial for long distance riders who commute daily by their two-wheeler.

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The insurer provides services like breakdown assistance, towing, fuel replacement, and minor repairs if your vehicle breaks down while you're on a journey. With emergency assistance cover, you'll get assistance like towing, mechanical repair, fuel replacement, etc.

If you opt for Emergency Assistance Wider Cover, you'll also get additional benefits like arrangement of alternate keys in case your keys are lost. However, this cover has limited benefits, primarily focused on providing spare keys subject to a police report.

The types of assistance you can get with roadside assistance cover include breakdowns, emergency fuel, flat tires, lost keys, and minor bike repairs. This cover can be a lifesaver if you're stranded on the road with a faulty bike.

Here's a comparison of Emergency Assistance Cover and Emergency Assistance Wider Cover:

FeatureEmergency Assistance CoverEmergency Assistance Wider Cover
Assistance providedTowing, mechanical repair, fuel replacement, etc.Arrangement of alternate keys
BenefitBeneficial for long distance ridersOnly limited to arrangement of alternate key

Co-Passenger Fare

You can get financial protection for your pillion rider in case of an accident with the 8PA Cover For Co-Passenger.

The personal accident cover add-on provides coverage for injuries and damages to the co-passenger or pillion rider.

This cover is especially useful for bike owners who regularly commute with a pillion rider.

Ease of Settlement

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Ease of Settlement is a crucial aspect of bike insurance, and HDFC Ergo Two Wheeler Insurance excels in this area. Their claim settlement process is streamlined and efficient.

You can file a claim in under 3 minutes, thanks to their user-friendly online platform. HDFC Ergo also has a 100% Claim Settlement Ratio, which means you can rely on them to settle your claim without any hassle.

The company has a vast network of 2000+ cashless garages across India, making it convenient for you to get your bike repaired. With their door-step two-wheeler repair service, you can get your bike fixed at your doorstep.

Here's a comparison of the cashless and reimbursement claim settlement processes:

Claim TypeSteps to File a Claim
CashlessNotify the insurance company, register the claim, assign a surveyor, approve the claim report, and settle the bill directly with the garage.
ReimbursementNotify the insurance company, register the claim, take your bike to the nearest garage, pay the bill directly, submit the bills and documents to the insurance company, and get reimbursed for the claim amount.

Whether you choose the cashless or reimbursement option, HDFC Ergo's claim settlement process is designed to be as smooth and hassle-free as possible.

Factors to Consider

Before buying bike insurance, consider the premium cost, which starts at ₹390/month. This is a relatively affordable rate for bike owners.

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When comparing insurance plans, look for the option to compare bike insurance online from 17+ trusted insurers, which can help you find the best deal.

To ensure smooth claim settlements, consider the 24*7 claim support available with some insurance plans. This can be a lifesaver in case of an emergency.

The table below highlights the key factors to consider when choosing a bike insurance plan:

CategoryKey Features
Bike Insurance PremiumPlan starts @₹390/month*
Compare & SaveCompare bike insurance online from 17+ trusted insurers
Claim Settlement24*7 claim support for instant settlements available

By considering these factors, you can make an informed decision and choose the best bike insurance plan for your needs.

Factors Affecting

The type of insurance policy you choose can greatly impact your bike insurance premium. A third-party policy is the most basic and cheapest option, covering only third-party liabilities.

A comprehensive bike insurance policy, on the other hand, offers extensive coverage and added benefits, but comes with a higher premium cost.

The engine capacity of your bike is another crucial factor, with higher cubic capacities resulting in higher insurance premiums.

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Credit: pexels.com, Vintage motorcycle on asphalt embankment near rippling river water against industrial area in city

The age of your bike also plays a significant role, with older bikes generally having lower insurance costs due to their lower value.

The Insured Declared Value (IDV) of your bike, which is its current price or value, also affects your premium amount, with lower IDVs resulting in lower premiums.

Adding extra accessories or modifications to your bike can increase your premium cost, as basic insurance policies don't cover these extras.

The more add-on covers you choose, the higher your premium amount will be, so be wise and prudent when selecting these extra features.

Anti-Theft Devices and Safety Features

Installing anti-theft devices or safety features on your bike can lower your insurance cost. These devices reduce the chance of theft and increase safety, making it less likely that you'll need to make a claim. Installing a GPS tracker, for instance, can make it easier to recover your stolen bike. Installing anti-theft devices or safety features on your bike can also increase its resale value. The type of device you choose will depend on your specific needs and budget.

Personal Accident Insurance

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Personal Accident Insurance is a crucial aspect of bike insurance that can provide financial protection in the event of an accident.

You're required to purchase mandatory personal accident insurance if you own a bike and have a valid driving licence.

The amount of PA coverage you can get varies based on policy customization, but it can go up to Rs. 15 lakh.

This coverage provides compensation for severe injuries, permanent disability, or death of the policyholder.

Here's a breakdown of the key features of personal accident insurance:

FeatureDescription
Coverage AmountUp to Rs. 15 lakh
Policy CustomizationVaries based on policy customization

The claim settlement process for personal accident insurance is usually straightforward, but it's essential to understand the terms and conditions of your policy to ensure a smooth experience.

Choosing Optional

You should only buy bike insurance add-ons that you need, as they can increase your insurance cost. This is because different bike owners have different needs, such as a bike owner who rides their bike daily for commuting versus one who rides for fun.

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The add-ons you choose should match your riding habits and lifestyle. For example, if you go on long bike journeys crossing state borders, make sure you understand the extension of coverage and legal requirements in other states.

If you have an expensive bike, you may want to consider add-ons like zero depreciation cover or engine gearbox protection to cover the high repair costs. These add-ons can give you extra benefits, but at a higher price.

Bike owners who ride in areas with high crime rates may want to consider add-ons like key protection cover or any loss of personal belongings. This can provide extra peace of mind and financial protection.

Ultimately, the key is to choose add-ons that make sense for your specific needs and circumstances. Don't feel pressured to buy add-ons just because they're available – only buy what you need to get the most out of your bike insurance policy.

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How to Buy/Renew Online

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You can buy or renew bike insurance online, and it's always a good idea to do so if your two-wheeler is in good condition and actively used on the road. Buying or renewing online is convenient and can be done in a few steps.

Renewing your bike insurance policy online allows you to take advantage of No Claim Bonus (NCB) benefits, which can save you money on your premium. For example, if you renew your policy on time, you can get a 20% NCB discount for the first year.

You can also change your insurance company while renewing your bike insurance policy, giving you the flexibility to switch to a provider that better suits your needs. There are two ways to buy or renew bike insurance online, but the exact process may vary depending on the insurance company you choose.

If you fail to renew your bike insurance policy on time, you may be fined by the RTO, with a penalty of Rs 2000 for the first offence and Rs 5000 for the second offence. To avoid this, it's essential to renew your policy on a timely basis.

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Calculating

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Calculating your bike insurance premium is a crucial step in choosing the right policy for your vehicle. To get a clear idea of what you're paying for, ask for a premium break-up of your two-wheeler insurance policy.

A clear break-up will help you understand the various components that make up the premium. This includes the own damage premium, third-party bike insurance premium, personal accident premium, and add-on premium.

To calculate your own damage premium, consider the IDV (Insured Declared Value) of your bike, which directly affects the premium. A lower IDV means a lower premium. You should also know about the NCB (No Claim Bonus) benefit, which can lower your premium if you don't raise any claims in a given year.

To calculate your premium, you can use a bike insurance premium calculator, which is a simple tool that helps determine the exact premium you'll pay. To use the calculator, enter your vehicle's details, such as registration year, registration city, make, model, and add-on covers you want.

Here are the details you need to provide to calculate premiums:

  • Manufacturer
  • Sum insured
  • Make, model, and variant of the bike
  • Date of registration
  • Add-on cover

By providing these details, the calculator will show you the exact premium you need to pay for your bike insurance policy.

Understanding Bike Insurance

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Bike insurance is a must-have for any bike owner, as it protects against financial losses in case of accidents, theft, or damage.

Comprehensive bike insurance covers damage to your bike from accidents, vandalism, or natural disasters, and also includes third-party liability coverage.

The cost of bike insurance varies depending on the type of bike, location, and other factors, but on average, it can range from $50 to $200 per year.

Common Terms Used

Bike insurance policies typically cover damages to the vehicle itself, not the rider's injuries.

Excess is the amount you have to pay towards a claim, which can vary depending on the type of bike and the policy.

Some bike insurance policies come with a no-claims discount, which can reduce your premium if you don't make a claim for a certain period of time.

The policy excess can be split between the policyholder and the insurer, with the policyholder paying a certain amount and the insurer paying the rest.

A policy's excess can be waived if you agree to pay a higher premium, which can be a good option if you're involved in an accident and can't afford the excess.

A third-party liability policy covers damages to other people or property, but not the bike itself.

What Is NCB?

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NCB is a bonus offered to policyholders for responsible driving, which reduces the bike insurance policy premium cost. This discount is a significant advantage that enables you to get the same level of coverage for a significantly lesser price.

The NCB discount can go up to 50% if you don't raise any claim for five consecutive years. This means that if you're a safe and responsible rider, you can save a substantial amount on your bike insurance premium.

Here's a breakdown of the NCB slab for bike insurance:

Claim free yearNCB Discount (%)
After the 1st Year20%
After the 2nd Year25%
After the 3rd Year35%
After the 4th Year45%
After the 5th Year50%

If you're a responsible rider, you can enjoy the NCB benefits, but remember that the discount will lapse if you don't renew your policy within 90 days of its expiry date.

What Is IDV?

IDV, or Insured Declared Value, is the maximum sum for which your motorcycle may be covered by insurance. This is the insurance payout if the two-wheeler is lost or stolen without a trace.

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The IDV is the bike's current market value, and it's used to determine the insurance payout in case of a total loss or theft. You can choose to change the IDV by a 15% margin, but be aware that it will affect your premium.

The IRDAI calculates the actual IDV using a formula, and you can view your bike insurance premium after setting the IDV. You can also view your bike insurance premium to see the impact of changing the IDV.

If you set a higher IDV, you'll get a larger sum as compensation in the event of a total loss or theft, but you'll also pay a higher premium. On the other hand, if you set a lower IDV, you'll pay a lower premium, but you won't receive adequate compensation for theft or total loss.

The IDV is calculated based on the bike's listed selling price at the time of purchase and the time elapsed since then. The depreciation amount is fixed by the IRDAI, and it varies depending on the age of the vehicle.

Here's a breakdown of the depreciation schedule:

Age of the Vehicle% of Depreciation for fixing IDV
Less than 6 months5%
Exceeding 6 months but less than 1 year15%
More than 1 year but not exceeding 2 years20%
Exceeding 2 years but less than 3 years30%
More than 3 years but less than 4 years40%
More than 3 years but not exceeding 4 years50%

For example, if Mr. A sets an IDV of Rs 80,000 for his scooter, he'll get a larger sum of compensation if his bike is stolen, but he'll pay a higher premium.

Choosing the Right Policy

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Assess your coverage requirement and select that policy which fits in your budget. This will help you avoid over-insuring or under-insuring your bike.

Know your bike's cubic capacity and then accordingly select the policy. This is crucial because different policies may have different coverage limits based on the bike's capacity.

Understand in detail about every add-on or riders available and then extend your policy coverage. This will ensure you get the best possible coverage for your bike.

To determine the IDV of your bike, know the current insured declared value (IDV) of your bike. This amount will be paid by the insurance provider in case of total loss or theft of your bike.

Research about the insurance company online and select the reputed insurer. A good reputation is essential for a smooth claims process.

Compare the premium quotes online and read the policy terms and conditions online, as per your own convenience. This will help you make an informed decision about your bike insurance policy.

Always consider reading customer feedback and reviews online. This will give you an idea of the insurer's reliability and customer service.

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Virgil Wuckert

Virgil Wuckert

Senior Writer

Virgil Wuckert is a seasoned writer with a keen eye for detail and a passion for storytelling. With a background in insurance and construction, he brings a unique perspective to his writing, tackling complex topics with clarity and precision. His articles have covered a range of categories, including insurance adjuster and roof damage assessment, where he has demonstrated his ability to break down complex concepts into accessible language.

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