Navigating the basics of bike insurance

As per the Indian Motor Tariff of 2002, maintaining at least a third-party two-wheeler insurance is mandatory for every two-wheeler plying in the country. Bike insurance offers you a financial protective cushion in case you meet any unprecedented accidental circumstance. Zurich Kotak General Insurance is a noteworthy name in this context.

What is bike insurance?

To put it in layman’s terms, bike insurance is a mutual contract and agreement between the bike owner and the insurance provider to offer financial protection for any damages or losses incurred in the case of any accidental circumstance involving your vehicle, as per the terms and conditions of the chosen plan.

These days, you can easily purchase bike insurance online.

Types of bike insurance

The different types of bike insurance prevalent in India include:

1. Third-party insurance: This is the basic form of insurance that caters to the losses and damages faced by the third-party including loss of lives involving your two-wheeler.

2. Comprehensive plan: This is a more elaborate plan offering protection for self and the third party. You can further enhance the coverage span by adding befitting add-ons to the basic policy frame. The premiums for such plans are comparatively higher and may rise further with adding add-ons.

3. Standalone cover: This plan only offers a self-damage cover. You can add add-ons to this plan too. But, since third-party coverage is mandatory, you need to buy a third-party liability cover separately if you buy this plan.

Premium calculation

The insurance providers consider several factors while deciding the premium for two-wheeler insurance including:

1. Cubic capacity (cc) of the concerned vehicle

2. The coverage span offered by the policy

3. The types of accessories installed, like any additional security accessories, or other measures. It may reduce the premium

4. The type of bike. Usually, high-end sports bikes experience a comparatively higher premium rate.

IDV in bike insurance

IDV or the Insured Declared Value determines the declared value of the concerned two-wheeler. Once you declare the value of the vehicle it remains static throughout the policy course.

NCB in bike insurance

NCB or No-Claim Bonus is the special reward offered by the insurance provider for raising no claim during the policy tenure. This reward may be offered in the form of cashback, reward points or cash discount. It is added during policy renewal and keeps accumulating as long as you raise no claim.

Tips to choose the right bike insurance

Before purchasing a befitting bike insurance cover, you must consider several significant factors to avoid any unfavourable circumstances:

1. Critical analysis of your coverage essentials

2. Considering the cubic capacity of your vehicle to determine the premium amount

3. Understand the IDV

4. Look for suitable riders or add-ons to expand the scope of policy coverage

5. Research several bike related plans online with Zurich Kotak General Insurance before making the final choice

6. Always consider the online customer review to understand the scenario better.

Conclusion

This comprehensive guide shows you the importance and essentials of bike insurance, highlighting the basic details. Consider these factors before practical implementation.

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