Know Your Bike Insurance Policy

A two wheeler insurance policy or commonly known as a Bike insurance policy is designed to protect you and your vehicle from the hazards of on-road impacts. With most companies offering similar benefits, it is often confusing which policy to go for. The premiums charged by different insurance companies are more or less the same. But, with respect to the policy terms, slight changes may have bigger impact. Therefore, is always better to know what you buy rather than believe in what is said.

1. What benefits does your bike insurance policy offers?

Let us first understand what exactly a bike insurance policy covers.

• Loss of bike: Bikes are more vulnerable to theft as compared to a four-wheeler due to the size and ease of access. Insurance companies offer financial protection in the event of your bike being lost or stolen.
• Physical damages: Post-collision, you find that your bike has suffered physical damages and paying the repair cost may be your nightmare. Don’t worry. Your insurance company pays the repair costs of such physical damages on your behalf.
• Rider cover: Accidents are uncontrollable and injuries to the rider, inevitable. A bike insurance will pay a per-defined sum to the beneficiary, in case of death or total permanent disability of the rider.
• Third party liabilities: In most cases, accidents involve third parties. If your bike bumps into a tree or slips on a greasy road then no third party is involved and hence you have no liabilities. But if you accidentally knock someone walking on the street then you are liable to pay for the medical expenses of the injured. This also is taken care of by the insurance policy.

2. How much premium you pay?
If your bike insurance policy offers cover for the benefits mentioned above, the insurance company will charge you for the same. What the exact premium would be will depend on what type of bike you ride. An expensive, sporty bike will absorb more premium than economy bike. Premiums also depend on how old the bike is, type of fuel it consumes, place of registration and the nature of optional covers you choose. Most insurance companies offer a bike insurance premium calculator online to facilitate its prospect a quick quote for making informed decisions.

3. What percentage of the total repair cost is reimbursed?

Do not be under a mindset that your insurance company will reimburse the entire repair cost. Usually the cost is bifurcated into body parts replacement cost and metal parts repair cost.

Assume that the following costs have been incurred:

• Body (Plastic) Parts Replacement – Rs. 10,000/-
• Metal Parts Repair/Replacement – 8,000/-
• Denting, Painting and Labor Cost – Rs. 2,000/-
• Total – 20,000/-

As per terms, your insurance company might reimburse 50% of body parts cost, 90% of metal part costs and does not pay for the labor cost. You end up saving Rs. 12,200/-. Different companies offer different terms. Carefully compare before purchasing.

4. What is the claim process?
Before picking up a bike insurance policy, you need to understand the process of making a claim for each of the benefits mentioned above. The claim process should be quick and hassle-free. How fast your insurance company settles claims may also be a subject of concern. Often one wants to opt for cashless claim in which case you need to ensure whether cashless claims are offered in the garages/hospitals around you.

The above mentioned points are enough to decide on which company’s bike insurance plan suits you the best. The percentage reimbursed by the company is as vital in making a decision as the claim process. Get insured and have a happy ride…