Meanwhile, you should also take into account a non-negotiable aspect: Bike insurance. As a first-time rider, the terms like IDV (Insured Declared Value), NCB (No Claim Bonus), and third-party vs own damage cover sound like some technical factors.
In this blog, we’ll break down each of these terms and present how you can purchase your first insurance policy for your bike.
The Basics of Bike Insurance in India
The insurance policy for bikes is designed to provide financial protection against the risk associated with riding a two-wheeler. As per the Motor Vehicles Act 1988, every two-wheeler in India must have a minimum of third-party cover. There are mainly three types of two-wheeler coverage policies, which include:
- Third Party Coverage: This coverage protects third-party bodily injury or property damage if it is caused by your vehicle. Having this coverage is mandated by the law.
- Own Damage Cover: This coverage provides protection for your own vehicle from theft, damage and total loss. However, you have to separately purchase a third-party two-wheeler coverage.
- Comprehensive Cover: This policy includes both third-party and own damage cover. It lets you stay protected both by staying legally compliant and complete protection for your vehicle.
Factors to Consider Before Buying a Policy
There are multiple factors associated with comprehensive bike insurance policies. Here’s a brief look at each of them:
- Insured Declared Value (IDV): The IDV indicates the current market value of your two-wheeler and it is the maximum amount you will get if your vehicle is a total loss or stolen.
- No Claim Bonus (NCB): The no claim bonus is the accumulated bonus policyholders get from the insurer if they do not make any claim in a policy year.
- Add-on covers: Add-ons are optional covers over the base plan. It increases the scope of coverage in terms of engine protection, consumable covers, roadside assistance, etc.
- Network Garages: Every insurer has a network of garages, in which your vehicle gets repaired at the insured value.
- Policy Tenure: For new bikes, it is mandatory to have a minimum of five years of third-party coverage.
Common Add-On Covers for First-Time Buyers
Add-ons are optional coverage over your base policies. Some of the common add-ons include:
- Zero Depreciation Cover: In a standard claim, depreciation is applied for bike repairs and you bear a portion of the replacement cost. With this add-on, depreciation deduction is minimised for your vehicle.
- Engine Protection Cover: In many base insurance plans, engine cover is not included. This add-on increases the scope of your two-wheeler engine coverage when making a claim.
- Roadside assistance cover: This add-on provides on-call support if your bike breaks down unexpectedly.
- Consumables cover: Consumables such as engine oil, nuts, bolts, lubricants, and coolants are often excluded from claims. With this cover, consumables are also included when you make a claim.
For example, insurers like HDFC ERGO provide you with a diverse range of bike coverage options, together with accessibility to add multiple add-ons. They also provide policyholders with more than 2,000 cashless garage networks across India.
Step-by-Step Process to Buy New Bike Insurance Online
Purchasing bike insurance includes the following series of simple steps. Here’s how you can book your first bike insurance policy:
- Visit the insurer’s website.
- Enter your bike details, such as bike number, brand, variant, registration city & RTO and registration year, model, variant and registration information.
- Select the policy type.
- Customise with add-ons as per your needs.
- Review all policy details.
- Complete the payment through credit/debit card, net banking, UPI or any other available options.
- Receive the policy documents, save them in a secure place and take a printout of them.
*The actual process may vary slightly depending on the insurer.
Final Thoughts
Purchasing your first bike insurance is not a highly complex task. With just a few clarifications about your IDV, NCB, coverage types and add-ons, you can easily book your motor coverage policy. Moreover, smartly combining two-wheeler coverage, pairing with necessary add-ons, you can curate the most appropriate insurance policy for your bike.