Bike insurance Essential Explanation In Detail

As per the Indian Motor Tariff of 2002, all the two-wheelers plying in India are required to possess a bike insurance. The popularity of two-wheelers has significantly increased especially after the COVID-19 lockdown back in 2020. This has eventually boosted the bike insurance industry too. In this context, we must mention Zurich Kotak General Insurance for doing a commendable job.

What is bike insurance?

Bike insurance is technically termed two-wheeler insurance. It is a special tool utilised for financially safeguarding yourself during any accidental circumstance involving your vehicle. You must at least possess the third-party liability cover to meet the basic legal standards.

Types of bike insurance

While learning the bike insurance basics, you must be aware of the types of bike insurance currently available in the market:

Third-party bike plan:

Also termed a liability-only bike plan, this is the basis of every bike insurance policy. It exclusively covers the third-party liability of damages and losses during any unfortunate accidental circumstance, including physical damages/losses, bodily injuries and even death.

Comprehensive bike plan:

This offers coverage for both the policyholder as well as the third party. Because of such an elaborate coverage span, the price is also higher, implying paying a comparatively higher amount of premium. This is essential if you own a more expensive bike variant that requires significant repair costs.

Standalone own damage:

As the name suggests, this exclusively offers coverage for the bike of the policyholder. You must note that if you are purchasing this type of bike insurance, you need to purchase a separate third-party liability cover to maintain legal complacency.

Types of coverage offered by different types of bike insurance policies

What are the types of coverages available Own Damage cover?

The types of events that the Own Damage Coverage Plan covers include:

1. Road accident

2. Natural calamities like typhoons, hurricanes, earthquakes, floods, etc.

3. Explosion/fire

4. Strikes, riots

5. Terrorist activities

6. Damage caused in transit by rail, air, or water, etc.

What are add-on covers?

This benefit is exclusively available on the comprehensive bike insurance plan and standalone damage cover. They imply the additional benefits that you can purchase along with your basic plan to enhance the overall coverage span, by paying an additional premium. This additional cost is added to the cost of the basic plan. Some of the most popular add-on covers include:

1. Depreciation cover is where the policyholder’s claim settlement will not consider the depreciation rate by the insurer

2. Roadside assistance cover, offers the insurance holder with prompt road assistance. This is highly helpful, especially during midway breakdown.

3. Passenger cover allows the policyholder to enjoy damage coverage for the pillion rider too.

4. Engine protection cover allows coverage for engine damages, which is otherwise not considered under standard circumstances.

Conclusion

Various insurance exploration is essential to choose the right plan. It offers you the most suitable plan in the lot.

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