What Is Bike Insurance?

Bike insurance is an agreement between an insurance company and a bike owner, where the former promises the latter to cover the financial liabilities which may arise due to an unforeseen incident involving the insured’s bike. There are three kinds of bike insurance plans available in the market namely third-party bike insurance, standalone own-damage (OD) bike insurance, and comprehensive bike insurance. These bike insurance covers are distinguished on the basis of their coverage.

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Two Wheeler Insurance Companies FAQs

Which is the best company for two-wheeler insurance?

Currently, there are 25 general insurance companies in India that offer insurance plans for two-wheelers. The best two-wheeler insurance company varies from individual to individual depending upon their requirements and budget. However, insurance companies can be compared on the basis of their Claim Settlement Ratio (CSR) among other factors. The bike insurance companies which registered the highest motor own-damage claim settlement ratio in FY 2018-19 are IFFCO Tokio General Insurance (96.44%), Royal Sundaram General Insurance (94.07%), and The Oriental Insurance Company (93.16%).

Which is the cheapest two-wheeler insurance company in India?

The premium of a two-wheeler insurance policy depends on a number of factors such as IDV of the bike, type of insurance plan, number of add-ons opted, RTO location, etc. Thus, the cheapest two-wheeler insurance plan varies from bike to bike depending upon the requirements of the bike owner.

Can I change my two wheeler insurance policy company?

Yes, you can switch from one insurance company to another insurance company at the time of renewal of your policy.

What are the rules for a bike insurance company in India?

In India, it is mandatory to have at least a third party bike insurance policy as per the Indian Motor Tariff. The absence of at least a third party bike insurance policy is an offence in the country and attracts a fine of Rs. 2,000 and/or imprisonment of up to 3 months. Also, new bike owners are compulsorily required to have at least a long-term third party bike insurance policy with a validity of 5 years.

Which are the top 10 bike insurance companies in India

On the basis of the motor own-damage claim settlement ratio registered in FY 2018-19, following are the top 10 bike insurance companies in India: Insurance Company Motor OD Claim Settlement Ratio (FY 2018-2019)* IFFCO Tokio General Insurance Co. Ltd. 96.44% Royal Sundaram General Insurance Co. Ltd. 94.07% The Oriental Insurance Co. Ltd. 93.16% Universal Sompo General Insurance Co. Ltd. 92.45% The New India Assurance Co. Ltd 92.23% Tata AIG General Insurance Co. Ltd. 91.80% SBI General Insurance Co. Ltd. 91.74% Bajaj Allianz General Insurance Co. Ltd 91.23% HDFC ERGO General Insurance Co.Ltd. 89.48% Future Generali India Insurance Co. Ltd. 88.56% (*Claim Settlement Ratio As Per IBAI’s General Insurance Claim Insights Handbook For Policyholders - 4th Edition)

Will bike insurance companies pay for all the damages in a bike accident?

The coverage of a bike insurance plan depends on the type of plan purchased and the add-ons opted. Following are the three types of insurance policies available for bikes: Third Party Bike Insurance Policy: Under this, the insurer will only pay for the third party liabilities like bodily injuries, death, permanent/temporary disability, total/partial impairment of a third party due to an accident involving your bike. The third party bike insurance plan also provides coverage of up to Rs. 1 lakh for third party property damage. Standalone Own-Damage Bike Insurance Policy: Under this plan, the insurer provides coverage only for the own-damages incurred by your bike in a road accident, natural calamity, fire, explosion, riot, strikes, theft, or any other mishap. Comprehensive Bike Insurance Policy: This plan provides complete coverage for your bike. Under this plan, the insurance company compensates for own-damages sustained by your bike as well as third party liabilities incurred by it.

How does a bike insurance company provide coverage without checking the condition of the bike in India?

The act of checking the condition of a vehicle for insurance issuance is known as inspection. In the case of two-wheelers, no inspection is required for issuing a two-wheeler insurance policy.

What are the losses which are not covered while opting for two-wheeler insurance?

There are certain losses which are not covered under two-wheeler insurance. These are as follows:
Electrical or mechanical breakdown
Wear and tear of two-wheeler
Consequential loss/ Indirect loss
Intentional accidental loss
Driving under the consumption of alcohol or any intoxicated substance
Any contractual liability
Damage caused to/by a person driving any vehicle without holding a valid license

3) What is to be done after I have intimated the insurer of my two-wheeler insurance claim?

After receiving the intimation, the insurance company will send a surveyor to your place/at the place of the accident to assess the damage incurred. Post the assessment and verification of details, your two-wheeler will get repaired and the claim would be settled.

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