Bike Insurance - Everything You Need to Know| North Loop Official Blog
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28 Sep 2020

Bike Insurance - Everything You Need to Know

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What is bike insurance?

A bike insurance policy is an insurance plan that offers protection against financial losses and liabilities that arise due to injuries to the vehicle and the rider as well as third parties, depending on the type of policy.

What are the different types of Bike insurance policies in India?

There are primarily two types of bike insurance policy –

Comprehensive Insurance – A comprehensive two-wheeler insurance policy provides protection for costs incurred due to damages, coverage against third party liability, coverage against bodily injuries and a personal accident cover.
Even though this type of policy is not mandatory by law, it gets regarded as beneficial as it offers extensive coverage to both you and the bike. It also protects you from legal liabilities to third parties in an accident.
However, the comprehensive insurance policy does not cover any damages caused due to electrical or mechanical breakdown and losses caused due to the normal wear and tear of the vehicle.

Third-Party Liability Insurance/liability-only insurance: Third-party vehicle insurance covers any damages or losses caused to a third party or their property. This type of insurance policy is mandatory as per law and is one of the most commonly used for vehicle insurance. The IRDAI evaluates the damages before approving the claim, and once approved, it can provide coverage for bodily injuries, property damage, permanent disabilities, as well as a personal accident cover. Read about other types of insurance policies here.

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Importance of bike insurance in India-

In India, it is illegal to ride a bike without a valid two-wheeler insurance policy. Therefore, you must opt for a bike insurance policy as per law. However, other than statutory requirements, a bike insurance policy also has several benefits. Some of these are –

Eliminate financial stress – An insurance policy takes care of all the damages caused to your vehicle due to accidents and other misfortune events. The losses associated with it are also taken care of by the insurance company leading to freedom from financial stress.

Legal protection – If you do not want to avoid paying penalties and fines to the police, you should opt for a bike insurance policy. Because it is compulsory by law, you cannot afford to skip it.

Personal Accident Cover and No claim bonus– You can get a personal accident cover up to Rs.1 lakh in case of permanent disability due to an accident, and you can also enjoy a no claim bonus.

Features of two-wheeler insurance –

The following are the key features of a two-wheeler insurance policy:

Bike insurance policies offer coverage against natural as well man-made calamities such as earthquakes, storms, landslides, riots, theft, strikes, accidents, burglary etc.

The premium rates of bike insurance policies are cost-effective, and if the right insurer gets chosen, you can get low-premium insurance with added benefits.

In case of theft or loss of your bike, a pre-determined sum up to the value of your vehicle's IDV (Insured Declared Value) gets provided to you.

This policy also offers a personal accident cover on vehicle insurance that is limited to Rs.1 lakh for damages incurred to your insured bike as a result of an accident.

Many two-wheeler insurance companies provide discounts on their premium that can get claimed through the no-claim bonus feature offered by them.

You can get a low premium bike insurance policy online with a digital service provider like North Loop. The process is quick, the premiums are low, and the application or renewal is 100% digital.

Exclusions of bike insurance policy –

A bike insurance policy does not include the following –

  • Losses incurred due to normal wear and tear of the vehicle.
  • Damages or losses incurred due to war, mutiny or nuclear risk.
  • Losses incurred due to mechanical or electrical breakdowns.
  • Losses due to the depreciation of the vehicle because of regular use.
  • Damages to certain specific parts of the bike (example - tires, tubes, etc.)

Advantages of purchasing a bike insurance policy online –

Comparison: It is easier to understand the various features, premium rates and benefits offered by different insurance policies when comparing them online.

Less paperwork: If you buy a two-wheeler insurance policy online such as with North Loop, you can enjoy a paperless transaction and minimal documentation. The payment is also secure without the need for any receipts.

Cost-effective and saves time: Buying an insurance policy online is comparatively much more cost-effective than other routes. The cost and the time taken for the transaction is considerably lesser as there are no middlemen or brokers involved.

Ease of renewal: Banking and insurance providers such as North Loop offer a user-friendly mobile App making it easier to renew policies online. You can use the App from the comfort of your home and make any renewal payments through it.

Flexibility to make changes: It is easier to make changes to your personal and vehicle details when opting for two-wheeler insurance online.

To get a bike insurance policy with North Loop, sign up here.

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.