Bike Insurance

Under the Motor Vehicles Act, every bike owner should have at least third-party liability insurance. Beyond the legal requirement, comprehensive bike insurance suits daily commuters. Overall, bike insurance is a valuable purchase for individuals who are:

Bike insurance policies offer different levels of protection, depending on whether you want coverage for third-party liabilities, damage to your own bike or both. Understanding these differences can help you choose a policy that aligns with your coverage needs. Here’s a quick comparison of third-party, own-damage and comprehensive bike insurance:

Before purchasing bike insurance, it is important to know what your policy covers and what it does not. The inclusions and exclusions may vary based on the type of policy and insurer selected. Let’s take a quick look at the key inclusions and exclusions to understand your coverage better:

Yes, third-party motor insurance is mandatory in India under the Motor Vehicles Act, 1988, as amended by the Motor Vehicles (Amendment) Act, 2019. It means that every two-wheeler driven in public spaces should carry at least a valid third-party liability cover to protect against injuries, death, or property damage caused to others. Here are some of the key updates to the mandate:

Bike insurance covers mechanical and fuel-powered engines, whereas e-bike insurance is mainly for battery-powered electric vehicles, focusing on high-value electric components. If you want to know more about how bike insurance differs from e-bike insurance, then have a look at the table below:

In India, electric two-wheeler insurance heavily depends on the specifications of the bike. Low-speed two-wheelers, with a top speed of up to 25km/h and a motor power of 250W, do not need insurance. However, this exemption does not apply to high-speed electric two-wheelers that exceed these limits. Such vehicles must be registered under the Motor Vehicles Act and require valid third-party liability insurance to be legally ridden on Indian roads.

Bike insurance is essential for protecting yourself against unexpected financial losses, but it does not necessarily have to come with high premiums. By choosing your policy carefully and maintaining a good claims record, you can manage your insurance costs while ensuring adequate coverage. Let us explore the various ways you can save on your bike insurance premiums without compromising on adequate coverage:

In two-wheeler insurance, Insured Declared Value (IDV) is the current market value of your bike, considering depreciation. This is primarily used to calculate the highest limit that will be paid by the insurance company in case your vehicle is stolen or becomes a total loss. For instance, you may have purchased a bike for ₹1,00,000. Post-depreciation, the IDV could turn out to be around ₹80,000. In the case of theft of the bike wherein no recovery is made by the police, the insurer may compensate to the extent of ₹80,000. The depreciation applicable to your bike’s insured value is determined by IRDAI. The applicable rate is provided below:

For buying and renewing bike insurance, you need your vehicle’s registration certificate and identity proof, among others. Here is a complete list of documents that you need to keep handy:

Bike insurance renewal on time not only keeps you legally compliant, but it also keeps you financially protected. Apart from these, here are some of the key benefits of renewing your policy before expiry:

• Get Continuous Coverage 

Renewing your bike insurance before the expiry date ensures that your coverage continues without a break. This helps you stay financially protected against covered risks and ensures that your mandatory third-party insurance remains active while you ride. 

• Stay Legally Compliant

Once your policy expires, you no longer have valid insurance coverage, which can leave you non-compliant with the law if you continue to ride. Renewing your policy on time helps you stay legally compliant. 

• Prevent Financial Burden

Having an existing active policy in bike insurance will help prevent any financial surprises from accidents, damage to the bike, or third parties that are involved in the accidents. Failure to renew the bike insurance on time may mean you will have to pay for all these expenses on your own.

• Get Rid of Break-in Issues

Timely renewal of your bike insurance will help you avoid any inconvenience caused by an expired policy. If your policy has already expired, the insurance company may require you to take your bike for inspection before they give you coverage. Therefore, timely renewal will make the process easier for you.

• Maintain No Claim Bonus

The No Claim Bonus (NCB) ensures that you get rewarded for not making any claims through the discount on your own damage insurance policy. On-time renewal of the policy will help keep your NCB updated. Once the policy has lapsed past the relevant period, you might end up losing this benefit.

• Avoid Fines and Challans

If you ride your bike without having legally valid insurance coverage, you may incur fines. Renewing your policy on time allows you to keep away from unnecessary challans and other costs related to being uninsured. 

• Avoid the Last-Minute Hassle

Renewing your bike insurance policy on time allows you to have sufficient time to review your insurance, find better options for yourself and sort out all the document-related matters. This way, you avoid the rush that comes when your insurance is about to expire and take time to see what you are getting into.

You should consider claiming bike insurance only when you can justify using the policy benefits for significant claims. Making a claim can create an impact on your No Claim Bonus. Therefore, it is vital to balance the cost of damage with the NCB impact on your premium.

Think about making a claim for bike insurance in scenarios such as:

• When there is severe damage done to your bike and the cost of repair is high
• In case your bike is stolen
• Your bike gets damaged due to any fire or explosion
• In case of legal liability for injury, death or property damage caused to a third party

For instance, let us consider that there is an accident involving your bike and the repair cost comes to ₹25,000. In such a case, making a claim might work out well, provided your policy covers it and your deductible is ₹1,000. However, if the repair cost amounts to only ₹2,000, then filing a claim might not be justified.

At Pluto, you can raise a bike or two-wheeler insurance claim by following these steps:

A bike insurance claim can be rejected for several reasons, but many of them can be avoided with the right precautions. Here are some key tips to help you: 

1. Ensure you renew your two-wheeler/bike insurance on time. It is essential because insurance companies do not provide coverage for incidents under an expired policy. 
2. Inform your insurer as soon as possible. Do not wait for 3-4 days. Try to inform them within 24 hours. 
3. Ensure you carry valid documents. Plus, your driving licence and registration certificate should match your name. 
4. Always wait for the insurer to send an assessor to examine the damage. Once your claim is approved, you can take your bike to the network garage for repair.
5. Never ride under the influence of alcohol or drugs and do not participate in any illegal activities. 
6. Ensure you capture clear evidence of the damage and videos of the accident site.