Know these things before buying bike insurance


09 Jun 2023

Essential Factors to Consider Before Buying Bike Insurance

An insurance policy is a safeguard against the emergencies that occur in life and cause not only physical damage but also lead to a lot of mental worries, financial loss, and disturbance to life as a whole.

Motor vehicle insurance helps in taking care of a vehicle, be it a four-wheeler or a two-wheeler. According to traffic rules and road safety measures, driving a vehicle, big or small, on the road without a proper insurance policy is illegal. The comprehensive bike insurance provides protection against physical damage as well as its owner from any accident, collision, or any other incident that might occur with the vehicle. There are times when a third party may be harmed in a car/motorcycle accident, and the liability of the third party will be taken care of by the insurance policy.

Two-wheeler insurance or bike insurance, even though it falls under the general insurance category, is mandatory in India. The bike insurance policy protects the bike as well as its owner from the damages caused in an accident or as a result of a natural and man-made disaster. It also covers the loss to a third party involved in the accident by just paying a small bike insurance premium every month or year.

When buying bike insurance, you should look beyond the premium.

A good bike insurance policy provides the following benefits to the insurer: -

  • Comprehensive protection – Covers both natural and man-made calamities. In its exhaustive approach, it may include add-ons like Pillion Rider insurance, Zero Depreciation, Personal Accident Cover, NCB protection, etc.

  • Risk-free, stress-free – By taking the bike insurance policy and renewing it from time to time, that is, by doing the right thing, the insurer becomes financially protected and hence gets rid of worries resulting from unforeseen circumstances involving the vehicle and its owner.

  • Zero penalty – Third-party liability insurance is compulsory for two-wheeler owners as per the laws prevalent in India. While moving on the road, any two-wheeler can be stopped by the traffic police personnel and asked to show the vehicle papers along with the insurance. A fine of up to Rs. 1000/- is levied or imprisonment for three months if the insurance is not there or if it has not been renewed.

  • No claim bonus/discount – If the insurer has not made any claim on the policy for any particular year, then at the time of renewal, the No Claim bonus is adjusted in the bike insurance premium payable.

  • Third-party liability covered – A two-wheeler insurance policy protects the bike owner from the liability incurred due to the injury caused to a third party in an accident caused by the bike. The policy will compensate the third party as well as handle the legal expenses arising due to the accident.

Thus, it is safe to conclude that bike insurance should not be an option but a necessary action.

Related Blogs

Mistakes To Avoid while renewing two-wheeler Insurance

Is two-wheeler insurance mandatory for 5 years

Factors while purchasing two-wheeler insurance

Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.