The purpose of having a bike insurance policy is to secure you and your bike against the unpredictable risks that you may face on the roads. Yet the government has also made it mandatory to make sure you have this protection. Hence, there are two plans to insure your vehicle, the third-party bike insurance and comprehensive bike insurance policy. Let’s explore in this article how having a bike insurance policy is good for you and your bike, both.
How is Your Bike Insurance Policy Helping You?
You are protected by a bike insurance policy in two main ways: protection from legal liabilities and protection from financial outlays caused by accidents involving your bike. The third- party plan is a mandate of the government. And, in case you are a first-time owner of a bike, it is compulsory to buy this policy for 5 years. This policy only offers third-party liability coverage.
However, the comprehensive plan offers you both the required as well as the extensive coverage of your own damages. Choose any one of these, you are assured of being protected enough!
Legal Part
You are legally responsible for covering the cost of damage if your out-of-control bike causes an injury to a pedestrian or property damage. You are protected against such responsibilities by a third-party liability policy, where the insurance provider will handle the legal liabilities on your behalf in accordance with the terms and conditions. So, having a bike insurance policy gives you legal protection.
Budgetary Expenditure
Talking about comprehensive bike insurance plan, it will enable you to repair your bike without having to pay a substantial out-of-pocket expense. If your vehicle is destroyed in any situation out of your control, such as a flash flood or burned during rioting, it is still protected by your bike insurance company. According to the terms and conditions of the policy, the insurance company would take care of the repair work. So a lot of heavy repair and damaging expenses would be covered under this policy.
Loss Due to a Natural Disaster
Several regions in India are more vulnerable to harm from disasters caused by nature, such as fire, cyclones, flash floods, cyclones, earthquakes, etc. The insurer will take care of the repair costs if your bike is damaged as a result of such problems. These damages can destroy your bike completely and their repairing charges would be too expensive to pay from your pocket. This is where your motor insurance policy helps.
Read more- How to Protect Your Bike from Natural Calamities?
Loss from Man-made Disaster
In addition to natural disasters, there are also man-made disasters. The infrastructure of a city can sustain significant damage during a large-scale riot, strike,etc. If one of these disturbances causes damage to your bike, you can file a claim with your insurer and receive the proper reimbursement. Make sure you have a comprehensive policy as your basic third-party bike policy won’t cover you for this damage.
Loss as a Result of Theft
Not just in rural locations, but also in semi-urban and metropolitan areas, bike theft is a possibility. An all-inclusive coverage protects the insured from bike theft. The insured declared value (IDV) of the bike is paid to the policyholder if any such unfortunate event happens.
You can further enhance your policy coverage by adding a list of add-ons to your policy. These add-ons make your policy complete by covering you for additional coverages which are excluded from your base policy.
Read more - 5 Benefits of Two Wheeler Insurance Policy
How Does Going in for Add-ons Benefit You?
You can go for a comprehensive two-wheeler insurance policy and get the benefit of adding some add-ons to ensure that all the doors are protected. Add-ons enhance the coverage by adding more services to your policy. The best way is that you can survey your needs and pay only for each bike insurance add-on individually. These add-ons provide excellent support and help when in need.
Zero Depreciation
When resolving claims, the insurer will exclude the depreciation computation using this zero depreciation bike insurance add-on. You will therefore get a bigger claim payout.
Coverage for the Pillion Rider
This might be thought of as pillion rider accident insurance. This sort of add-on is perfect if you frequently have a passenger on your motorcycle. It offers financial assistance to a pillion rider in case of accidents, death, total or partial disability.
Invoice Protection
If you choose this invoice protection bike insurance add-on, the insurance will compensate you for the bike's invoice value in the event of a total loss. Otherwise, when resolving complete loss claims, the insurer takes the Insured Declared Value (IDV) into account. However, the invoice value is never greater than the IDV.
No Claim Bonus
You can file a claim with this add-on by your side and still qualify for the no claim bonus renewal reduction (NCB). The name NCB Protection refers to the protection of your no claim bonus in bike insurance portion even if you raise a claim. With your accumulated NCBs, you can get premium discounts at the time of policy renewal.
Moreover, there are many other add-ons that various insurance companies offer. Make sure you go through them thoroughly when researching to buy your bike insurance.
Conclusion
It's okay if you decide not to purchase comprehensive two-wheeler insurance. But in order to meet your legal duties, you are advised to get at least third-party insurance. If not, you risk punishment. Make sure you have an active bike insurance policy to operate as a responsible citizen of the nation.
