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All About Downtime Allowance Bike Insurance Add-on Cover

15 July 2022, 10:36 PM

A comprehensive bike insurance plan provides several benefits, one of which is the ability to enhance the cover with the help of different add-ons. Some add-ons are useful for receiving direct cash when any service gets delayed, while others help get better claims.

Downtime allowance is one valuable bike insurance add-on policyholders can choose to add to the base bike insurance policy for additional benefits. In this post, let us discuss all you should know about the downtime allowance bike insurance add-on and see how it can be useful.

What is Downtime Allowance Bike Insurance Add-On?

Downtime allowance is a special add-on for bike insurance that provides you with some benefits when your vehicle is under repair after an accident. You receive a fixed amount in the form of transportation allowance under this coverage till the bike gets repaired. The amount you receive and the minimum number of days for repair required to avail of the benefits of this add-on depend on the insurance plan and the insurer you choose.

To understand how the downtime allowance add-on works, let us consider the example of Mr. Z, who met with an accident on his bike. He could jump off the bike on time, but the vehicle suffered major damage. He quickly informed the insurance company about the accident and arranged for toeing the bike. The garage owner said it would take about 15 days to repair the vehicle. Now, Mr. Z had no vehicle to commute between home and office.

This is when this add-on proves to be useful. The insurer not only compensates for the bike's repair but also pays an amount for commuting daily to work. The amount he will receive depends on the terms and conditions of the insurance company. The downtime allowance add-on for bike insurance is particularly useful for those who face the problem of travelling to their workplace without their vehicle.

Read more - Add-On Covers in Two-wheeler Insurance Policy: Are They Required?

Benefits of Buying a Downtime Allowance Add-on for Bike Insurance

Following are the advantages a policyholder receives upon buying the downtime allowance add-on with either a comprehensive or standalone own damage bike insurance policy.

  • Financial assistance when the bike takes a long time to get repaired.
  • Increased claim amount under the coverage.
  • Reduced expenses from the pocket when getting the vehicle repaired.
  • Improved coverage under the insurance plan.
  • No stress of travel costs in the absence of the bike.
  • Ability to travel by preferred means of transport.

Overall, this add-on proves to be extremely valuable. It gives you complete peace of mind as you can continue commuting to work conveniently without worrying about the cost while your bike gets fixed.

Read more - Advantages of Add-on Covers in Two-wheeler Insurance Policy

Buying Downtime Allowance Add-On

You can buy the add-on for your insurance policy in two ways – the traditional offline method and the online method.


Getting your bike insurance add-on cover is quite convenient. When searching for a bike policy, you can add your preference for downtime allowance.

You will be presented with policies that offer the option of purchasing this add-on. You can enter your details and select from the list of add-ons to complete the purchase.


The offline method can take more time than the online insurance add-on for your bike cover. Contact the bike insurance company or agent for the application form.

After selecting the right add-ons and protection for your bike, you can send the form and relevant documents to the insurer and wait for approval. You should receive a copy of your insurance contract in about 5-7 working days.

How to Claim Downtime Allowance?

You can claim a downtime allowance for your bike insurance policy by contacting the insurance provider after the accident. You should inform the insurer immediately about the damage and the claim. Here are the steps involved:

  • The policyholder should get in touch with the insurance company about the accident and provide all the details as soon as possible.
  • Get the list of documents from the insurer and get them all ready for submission.
  • Register for the claim by logging in to the insurance company's website and uploading the relevant documents.
  • Whenever asked, provide additional information without any hesitation.
  • Once your claim is verified, you will receive the settlement, including the amount associated with the downtime allowance.

Things To Know Before Claiming Downtime Allowance

Under the add-on cover of downtime allowance, the insurance company compensates for the amount spent on daily commuting when the vehicle is under repair.

This compensation is offered as a lump sum at the time of claim settlement, direct transport facility, or cash coupons worth the amount to be used for transport booking. Here are a few things you should know about the downtime allowance add-on.

  • To get the benefit of the downtime allowance add-on, the insurer's claim for the damage should be approved. You cannot file a separate bike insurance claim under the add-on cover.
  • The calculation of the amount reimbursed under the add-on cover starts the day a notice is sent to the insurer about the claim or when the bike is taken to the garage for repair.
  • The amount under the downtime allowance is paid if the time taken for fixing the vehicle is more than the number of days mentioned in the policy.
  • In case of a total loss due to fire, theft, or irreparable damage, the add-on cover pays for 10 days.
  • The claim under the cover is not paid if the bike gets repaired before the time needed to activate the downtime allowance. This means your vehicle should take at least the number of days outlined in the policy to get fixed if you want to receive a commute allowance for the period.

Checkout Paytm Insurance for the Best Add-on Coverage

Buying an add-on cover for your bike insurance policy offers extra protection against unexpected events. Downtime Allowance is one of the best add-ons you can get when insuring your bike with a standalone own damage or comprehensive bike insurance policy.

Paytm Insurance allows users to compare bike insurance based on add-ons, such as downtime allowance, at the lowest possible price.



1. What other bike insurance add-ons can I buy in addition to downtime allowance?

You can buy add-ons for two-wheeler insurance, such as zero depreciation, roadside assistance, personal belongings cover, besides downtime allowance.

2. What is downtime allowance?

In simple terms, downtime allowance is payment provided for the time during which a bike or other equipment is not in use. It is critical for two-wheelers used for commercial purposes, such as deliveries, etc.

3.Which insurance policies can I add downtime allowance add-on to?

You can add it to either a comprehensive or standalone own damage bike insurance policy.

4. How much do I need to pay to get a downtime allowance?

It will depend on the terms and conditions laid down by the insurer regarding downtime allowance. Go through the policy wordings carefully regarding everything including downtime allowance.

5. When can I buy a downtime allowance add-on?

You can buy the add-on when buying the insurance policy or while renewing it.

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