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Comprehensive Two-wheeler Insurance

Comprehensive Bike Insurance

A comprehensive two-wheeler insurance policy ensures the highest security for an insured two-wheeler. It safeguards the two-wheeler from third-party liabilities as well as its own damages. Such a policy also extends a personal accident cover, covering the injuries sustained by the owner/rider due to an accident.

Considering the increasing rate of road accidents, it is imperative for every two-wheeler owner to avail of a comprehensive bike insurance plan to ensure adequate financial assistance. Go through the sections below to gain deeper insights about comprehensive bike insurance before purchasing one.

 

What is comprehensive two-wheeler insurance?

A comprehensive two-wheeler insurance policy provides financial coverage against the expenses arising from third-party damages. It also includes the benefits of an own-damage policy covering the expenses related to the damage of one's own vehicle in accidents.

Comprehensive bike insurance policies also compensate for the medical costs involved in injuries and death from personal accidents. Furthermore, policyholders can conveniently opt for add-on covers to enhance the insurance plan's efficacy and make it more well-rounded in terms of coverage.

Only third-party insurance is mandated by law in India. However, such policies only provide limited coverage. Check the following features of a comprehensive bike insurance plan to understand its functionality.

Features of comprehensive two-wheeler insurance

A comprehensive two-wheeler insurance policy is endowed with the following features:

  • Covers third-party liabilities

    A comprehensive two-wheeler insurance policy provides coverage against third-party liabilities. It includes damages caused to a third-party two-wheeler or injuries to a third-party person in an accident involving the insured two-wheeler.

  • Compensates for own damage

    Policyholders will get coverage for damages incurred on their two-wheeler resulting from any natural or man-made disaster. Under a comprehensive bike insurance policy, policyholders will receive financial assistance, helping them restore their two-wheelers to running condition.

    Furthermore, policyholders will be able to reap the benefits of a personal accident cover that is integral to a comprehensive two-wheeler insurance policy. Personal accident cover compensates for medical expenses of the policyholder or the driver resulting from injuries due to accidents involving the insured two-wheeler.

    It is a statutory obligation for two-wheeler owners to have third-party two-wheeler insurance cover in India. However, to get extensive coverage, purchasing a comprehensive bike insurance plan is recommended as it ensures both financial security and coverage against legal liabilities.

    Bajaj Finance Ltd. has partnered with multiple motor insurance providers in India to offer both comprehensive and third-party bike insurance online. Customers can compare several policies and choose the most suitable one.

Benefits of a comprehensive two-wheeler insurance plan

Getting a two-wheeler covered with a comprehensive insurance policy lets policyholders reap the following benefits:

Single premium: Individuals can avail of both own-damage and third-party liability covers by only paying a single premium, making the plan affordable and hassle-free.

Own-damage cover: Policyholders can secure their two-wheelers from damages resulting from natural or man-made events. Moreover, a comprehensive bike insurance plan compensates for damages caused due to fire, total loss, or theft.

Covers legal liabilities: A comprehensive two-wheeler insurance policy provides coverage for both legal and monetary liabilities associated with damages caused to third-party property or individuals.

Add-ons and NCB: • Another notable benefit of a comprehensive two-wheeler insurance policy is that policyholders can avail of add-on covers to customise and boost the functionality of the insurance plan. Add-on covers like the zero-depreciation cover, engine cover, roadside assistance cover, etc., help individuals receive additional coverage per their requirements.

Moreover, the easy accessibility of the no claim bonus allows policyholders to enjoy discounts on comprehensive bike insurance policy renewals for every no-claim year.

Inclusions of comprehensive two-wheeler insurance coverage

Before availing of comprehensive two-wheeler insurance coverage, individuals must have an in-depth idea regarding the following inclusions:

Bike theft: The policyholder will receive financial compensation if the insured two-wheeler is stolen or undergoes severe damage in any catastrophe. In case of a total loss, policyholders are entitled to claim the insured declared value, also referred to as the two-wheeler's market value.

Accidental damage to the bike: Policyholders will receive coverage for repair and replacement expenses for any minor or major damage caused to the insured two-wheeler in an accident.

Damage caused by natural disaster: This standalone comprehensive two-wheeler insurance plan ensures two-wheelers from damages caused due to natural disasters like earthquakes, floods, cyclones, etc. Furthermore, policyholders receive adequate financial support for damages caused by fire due to explosions, self-ignitions, lightning, etc.

Damage incurred due to man-made activity: A comprehensive policy extends financial assistance to protect the insured vehicle from any damage caused due to man-made activities like riots, strikes, etc.

Moreover, the easy accessibility of the no claim bonus allows policyholders to enjoy discounts on comprehensive bike insurance policy renewals for every no-claim year.

Third-party liability: A comprehensive two-wheeler insurance cover safeguards a policyholder financially from any damage or impairment sustained by third-party individuals or property.

Personal accident cover: The comprehensive bike insurance plan extends a personal accident cover that covers the medical expenses required to treat the injuries caused to the owner or rider due to a bike accident.

Exclusions of comprehensive two-wheeler insurance coverage

Though a comprehensive two-wheeler insurance policy offers extensive coverage, there are scenarios under which policyholders will not receive any coverage under the plan. Here is the list of such exclusions:

Consumables costs: A comprehensive bike insurance policy will not extend coverage for repairing and replacing consumables like nuts/ bolts, engine oil, grease, etc. Policyholders must avail of a consumable cover as a rider to receive compensation for the repair and replacement of such consumables.

Damage under intoxication: Policyholders will not receive any financial compensation for damages caused to the two-wheeler while riding under the influence of intoxicants.

Riding without a valid license: If the owner/ rider rides the two-wheeler without a valid licence or with a lapsed insurance plan, the insurer will not extend any coverage for any damage caused to the bike. Every two-wheeler owner must wear a helmet and have a valid driver's licence.

Electrical or mechanical failure: The insurance company will not cover damages caused to the two-wheeler from mechanical or electrical breakdown.

Damage caused outside India: If the two-wheeler is damaged or stolen outside the periphery of the specified geographical jurisdiction, for example, outside India, the insurance company will not accept any claim or reimburse the coverage amount.

Regular wear and tear: A comprehensive two-wheeler insurance premium will not extend financial compensation for regular wear and tear caused to the two-wheeler over time due to prolonged usage or depreciation.

Process to calculate comprehensive two-wheeler insurance premium

Policyholders can calculate the comprehensive two-wheeler insurance premium by factoring in the following parameters:

Insured declared value (IDV) of the two-wheeler: IDV is the maximum claim amount that the insurer will reimburse in the event of the two-wheeler's total loss or theft. While evaluating two-wheeler insurance premiums, IDV is taken into consideration. The insurance premium is directly proportional to the two-wheeler's insured declared value. One can easily compute the IDV by subtracting the accumulated depreciation amount and the cost of accessories.

No claim bonus and other discounts: Policyholders are entitled to a no claim bonus (NCB) if they did not make any claim throughout the policy term. NCB discounts range from 20% to 50%, which can be accumulated on the insurance policy, helping the insured get up to a 50% reduction in insurance premium after five consecutive claim-free years. Furthermore, installing an ARAI approved anti-theft device on their two-wheelers may help policyholders receive a discount on bike insurance premiums.

Third-party cover: To ascertain the two-wheeler's comprehensive insurance premium, policyholders must factor in the two-wheeler's cubic capacity and the prevailing annual insurance premium rates set by IRDIA.

Add-on covers The riders that policyholders opt for significantly impact the comprehensive two-wheeler insurance premium. Hence, policyholders need to consider the cost of each add-on or ascertain the overall cost of all the chosen add-ons to estimate how much they must bear additionally over and above the insurance premium.

Comprehensive two-wheeler insurance add-on covers

Here are the add-on covers that enhance the coverage of the comprehensive two-wheeler insurance plan, making the plan more effective-

Zero-depreciation cover: Over time, the value of a two-wheeler depreciates, which is then charged by the insurer. However, with the availability of riders like the zero-depreciation cover, policyholders receive the entire sum assured, ensuring that the depreciated value is not deducted from the coverage amount.

Consumable cover: A consumable cover allows the policyholders to receive reimbursement for the repair and replacement of consumables, including nuts/ bolts, screws, engine oil, bearings, grease, etc., which is otherwise not provided in a traditional insurance plan.

Return-to-invoice cover: This add-on cover proves beneficial if the two-wheeler is stolen or completely damaged. Policyholders will receive compensation equal to the two-wheeler's invoice value with a return-to-invoice cover. Moreover, it fetches the insured individual the two-wheeler's total purchase price, including road tax and registration charges.

Engine and gear protection cover: It is another notable benefit that allows the insured to receive coverage for the damage caused to the two-wheeler engine due to oil leakage, water ingression, damage to the gearbox, etc., thereby eliminating out-of-pocket expenses.

Breakdown assistance cover: In a breakdown assistance cover or roadside assistance cover, policyholders will receive prompt services like on-site repair service, assistance for changing tyres, lost key, fuel delivery, etc., in the event of the insured two-wheeler's breakdown.

Emergency medical cost: Policyholders can add emergency medical expenses to their insurance policies to financially secure themselves from the medical expenses and ambulance costs resulting from the aftermath of a two-wheeler accident.

NCB in comprehensive two-wheeler insurance

NCB or no claim bonus is offered to all policyholders who do not file a claim throughout the entire policy term. The NCB benefits are awarded in the form of discounts on the premium amount at the time of renewal for every claim-free year. If the policyholder chooses to change the insurance provider, NCB benefits can also be transferred to the new insurer. Thus, NCB goes a long way in helping policyholders save on the policy premium, minimise the insurance expenditure, and save hard-earned money.

Policyholders can also enhance their comprehensive two-wheeler insurance policy coverage by purchasing an NCB add-on cover.

This effective add-on cover is awarded to two-wheeler owners for their prudent use of it. Availing an NCB, an effective clause of the comprehensive bike insurance plan, helps policyholders enjoy a claim-free year and retain their NCB discount even after filing an insurance claim in the last period of the policy term. After every consecutive claim-free year, the discount percentage increases.

Moreover, one can carry forward the NCB, provided that the insurance plan is renewed within 90 days after the previous policy has expired. Individuals can refer to the table mentioned below to get an idea regarding the impact of the no claim bonus on the insurance premium:
 

Number of claim-free years NCB discount percentage
First year 20%
Second year 25%
Third year 35%
Fourth year 45%
After the fifth year 50%

Comprehnsive two-wheeler insurance vs Third-party two-wheler insurance

While purchasing the right insurance plan, policyholders need to weigh the differences between a comprehensive two-wheeler insurance and a third-party two-wheeler insurance cover to make an informed decision.
 

Comprehensive two-wheeler insurance plan Third-party two-wheeler insurance cover
In a comprehensive two-wheeler insurance plan, policyholders get extensive coverage for their own damage and third-party liabilities. Furthermore, a comprehensive two-wheeler insurance policy offers personal accident cover. In a third-party insurance cover, policyholders receive financial assistance only for damages caused to a third-party vehicle or person. It also covers legal liabilities related to third-party property damage and injuries or demise of third-party individuals.
Policyholders can conveniently opt for add-on covers like a zero-depreciation cover, roadside assistance cover, etc., against an additional premium to extend the coverage of their two-wheeler insurance plan. One cannot opt for such add-on covers in a third-party two-wheeler insurance plan.
Owing to its extensive coverage, the cost of a comprehensive two-wheeler insurance plan is comparatively high. As a third-party insurance plan offers limited coverage, the cost is lower than that of a comprehensive insurance plan.
A comprehensive insurance plan is an optional protection policy. A third-party liability cover is, on the other hand, mandated by the Motor Vehicles Act.
Under a comprehensive bike insurance plan, policyholders can insure their two-wheeler from theft, loss, or natural and man-made activity. A third-party insurance plan will only compensate for the loss or damage sustained by the third party.
Policy customisation is possible per the policyholder's requirement. One cannot customise a third-party two-wheeler insurance policy, where insurance cost is pre-determined depending on the annual rate of two-wheeler insurance as set by the Insurance Regulatory and Development Authority of India and the two-wheeler's engine cubic capacity.

Frequently Asked Question (FAQs) for Two-wheeler Insurance

Which is the best comprehensive two-wheeler insurance policy?

Policyholders can check different policy quotes online to choose the best comprehensive two-wheeler insurance plan. In addition, they must factor in the vehicle's cubic capacity as it determines the premium cost, understand the insurance declared value, and the number of add-on covers available to make the plan effective and functional.

Is comprehensive insurance mandatory for the two-wheeler?

No, it is not mandatory to avail of a comprehensive two-wheeler insurance plan. However, per the Motor Vehicles Act, all two-wheeler owners must have at least a third-party insurance cover. Failing to abide by the law will lead to monetary penalties.

Does comprehensive two-wheeler insurance provide full coverage?

Yes, a comprehensive insurance plan extends full coverage, securing the insured two-wheeler from both own damage and third-party liabilities. Furthermore, it ensures the bike from theft, fire, total loss, and any natural or man-made disaster.

What is zero DEP in two-wheeler insurance?

Zero DEP or zero depreciation in two-wheeler insurance is an add-on cover that proves instrumental in saving the policyholder's money, ensuring that the depreciated value is not deducted from the total sum assured. Instead, the insurance company will give the entire compensation amount without considering the depreciation, which would otherwise be charged to the insured individual.

Can I convert third-party two-wheeler insurance into a comprehensive plan?

No, it is not possible to convert a third-party two-wheeler insurance policy into a comprehensive plan. However, policyholders can switch to a comprehensive two-wheeler insurance plan to receive adequate coverage. Before switching to a comprehensive plan, policyholders must consider the policy cost, IDV coverage amount, deductible, etc.

What is the difference between a comprehensive two-wheeler insurance plan and a zero-depreciation two-wheeler insurance?

A comprehensive two-wheeler insurance plan is an effective two-wheeler insurance type; on the other hand, zero-depreciation two-wheeler insurance is a rider that policyholders can avail of later with an extra premium, then you don't have to pay the vehicle's depreciated value. Moreover, the claim amount will be lower in a comprehensive plan without zero-depreciation cover, whereas the claim amount will be higher in an insurance plan with a zero-depreciation cover.

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