While buying bike insurance it is essential to know all the options in hand before choosing what fits your requirement. When it comes to bike insurance, there are two kinds of policies that you can opt for;

Liability Only – Also known as the third-party policy, this plan covers minimum requirements for any vehicle insurance as per the mandatory rule of Indian laws. Any vehicle driven on Indian roads must have a third-party policy. In case of an accident, the policy protects for injury or death of a third party, or any damage to third party property.

Comprehensive Policy – A comprehensive policy includes third-party liability as well as coverage for damage to own vehicle in case of an accident or event. This policy also offers the benefit of multiple Add-ons.

Bike Insurance Coverage

When you purchase the liability only policy, you choose the basic plan and only need to consider the sum insured and premium. However, when you buy a Comprehensive bike insurance policy you need to look into several factors. It is highly significant to understand all the norms of such policy as it shall cover any damage incurred due to any of these occurrences. It shall compensate for any bodily injury or death of insured as well.These factors include;

• Natural Calamities like floods, earthquakes, fire, hurricanes, lightning, storms or typhoons, even explosions or self-ignition
• Man made harm or damage to your vehicle as a result of human activities like accidents, thefts, or malicious acts
• Personal accident cover in case of any complication or permanent or temporary disabilities of insured and the passenger
• Add On coverage for extra protection

Which plan suits you best entirely depends on your requirement however; it is vital to ensure that your bike is optimally insured and that you renew your bike insurance on time.

Bike Insurance Exclusions

Every bike insurance policy comes with exclusions based on regular use of the bike. The insurance does not include factors like;

• Normal wear and tear of bike
• Mechanical and electrical breakdown
• Damage or loss incurred due to driving under the influence of alcohol
• Damage or loss incurred when driving without a valid driver license
• Damage or loss incurred from a war-like situation.

IDV in Bike Insurance Policies

When calculating the premium for your bike the IDV is taken into consideration. It applies only for Comprehensive insurance policy as the third-party liability insurance is tariffed on the basis of vehicle category.

Ideally, you want to opt for a policy that has lower premium so you may declare a lower IDV for your bike. But keep in mind, at the time of claim processing, the insurer will evaluate bike age and corresponding IDV. The depreciation deduction would also be considered when finalising any claim. Hence in many cases, though your premium is high, depreciation would result in lower claims.

You can always reduce the cost of depreciation by opting for Add-ons like Zero Depreciation or NCB cover. In such plans, you get compensation for damage or loss without financial deductions towards the depreciation of parts. There are other Add-on covers options as well that provide great benefits like engine protector cover, consumables cover or return to invoice cover.

So, as you choose your bike insurance, remember to consider all the points and benefits that would make the decision for you easier and within your fit. Always remember to compare policies and make an informed decision.