Bike Insurance

There are thousands of types of bike insurance. However, all of them differ in various ways as far as the cover is concerned. The rider can go in for easy liability to a much more comprehensive insurance cover-it depends on the requirement and wallet of the rider. There are many types of bike insurance, and so one needs to know what each type is all about and what it covers before going for the right cover.

1. Third-Party Liability Insurance

• Third party liability is the most common and, indeed a most serious compulsory form of bike insurance both in India and most countries in the world.

Coverage:

• This would mainly be coverage for the damages or injuries you may inflict on third parties or their properties as liabilities from the accident. Third parties’ bodily injury or death and damage to properties are covered.

Limitations:

• It fulfills all the legal requirements, but it provides very low cover in case the damage happens to your cycle or you suffer injuries. It has been mentioned while releasing a statistic from IRDAI, and it says more than 80 percent of two-wheelers plying on Indian roads fall under third-party liability insurance.

Premiums:

• This insurance premium is state-regulated and, hence, low or high compared to the comprehensive policy. For example, for FY 2023-24, the premium of a bike having an engine capacity of between 150cc to 350cc is ₹1,366. 

Accident Statistics:

• As per statistics, two-wheelers accounted for 44.5 percent of all road accidents in India during the calendar year of 2021 with close to 1.5 lakh third-party liability policy claims.

2. Comprehensive Bike Insurance

• There are two types, and third party liability comes next, and the other one is the protection of damages to your own bike.

Coverage:

• This type of insurance covers the insured against diverse risk categories, such as accidents, theft, fire, vandalism, and natural calamities. It also includes third party liability cover and damage to the insured bicycle. Third party insurance is costlier than the comprehensive one. Now, for this kind of insurance policy, a range from ₹1,500 per year to ₹3,000 is there for bikes with an engine capacity of 150cc and 350cc, respectively.

Market Penetration:

• It is reported by IRDAI that only 20% of two-wheeler owner has purchased a detailed version of two-wheeler insurance, yet it reveals that people are becoming aware to have better coverages at the risk time.

Claim Settlement:

• There is a claim settlement rate of almost 90% complete settlement ratio, which would point how efficiently the same insurance company would clear the claims.Extra add-on covers which include zero depreciation cover where the complete claim is compounded without considering any sort of depreciation.

3. Two-Wheeler Insurance

• Two-wheeler insurance is that general term usage of which describes different types of policies specifically designed for bikes or scooters.

Coverage:

• It provides third-party liability cover, own damage, and roadside assistance while including personal accident insurance. The coverage is different hence suitable for every rider.

Customization:

• Its length and width can be customized as per what the rider feels he or she is most in need of, which is why this is such a popular variant among bike owners.

Gross Market:

• By end-2021, there are 20 crore two-wheelers. Only 25% of the population has comprehensive insurance for a two-wheeler. For the remaining 75%, it is just third-party liability cover. The sales of electric two-wheelers have increased by 132% in FY 2022-23 with 8.3 lakh units sold in India. According to ET TIMES, it brings riders to a more customized insurance that will cater specifically to the needs of their bike.