Passenger Cover in Bike Insurance

Passenger cover is a type of insurance add-on that ensures that the passengers on your bike are financially covered. A passenger cover gives financial protection to the pillion rider of the bike in case any mishap occurs. The cover helps you financially in such cases. 

Consider this example: 

A particular question has been bothering Karthik’s mind while he was purchasing his bike, ‘If Yashna and I go to work together every day using this bike, how can I secure her safety through an insurance policy?’ 

On enquiring with his insurance company and doing some research on his own, Karthik found out that he can opt-in for the passenger cover to his comprehensive bike insurance policy, which will take care of the financial liabilities arising out of the death, temporary or permanent disabilities of co-passengers on the bike. Relieved, he decided to purchase this new cover. 

Wish to learn more about this cover? Read on to find out!

Features & Benefits of Passenger Cover Add-on

• A passenger cover add-on can only be availed for a comprehensive policy and not a third-party liability insurance plan.
• This add-on safeguards the interests of the passengers in the vehicle by providing for –
  • cost of medical treatment,
  • disability liability,
  • financial assistance in case of death during an accident.
• The scale of compensation depends on the nature of the injury. For example, death and permanent disability would get the insurer to pay 100% compensation, whereas, loss of one eye or limb will result in 50% compensation.

The bike insurance company will pay the compensation as stated below:

What is Covered?

The following is included in the policy – 

• The coverage of disability liability to passengers of the insured vehicle.
• The cost of medical treatment for passengers in case of an accident.
• Financial assistance in case of the death of passengers.

What is not Covered?

The following is not included in the passenger cover policy – 

• Damages caused to the bike by virtue of it being driven under the influence of alcohol.
• Damages caused to the bike by virtue of self-injury.
• Damages caused to the bike by virtue of contributory negligence of the insured.
• Damages caused to the bike when it was being driven by a person who lacked a valid driver’s license.
• If the damages or losses were incurred when the passenger was no longer on the bike.

Who Should Buy a Passenger Cover?

Such a policy cover is usually recommended for those who frequently travel with a co-passenger on the bike and for those who use the bikes for commercial purposes.

Factors to Keep in Mind Before Choosing Passenger Cover 

• It is better to choose an online insurance policy to make the process shorter and simpler.
• The compensation that is provided by the insurance company in case of the death of the passenger is fixed.
• Having this add-on in one’s bike insurance policy will help avoid legal liabilities in case of a mishap.