What is Two-Wheeler/Bike Insurance?

What is Two-Wheeler/Bike Insurance?

Two-wheeler insurance, also known as bike insurance, is a financial safety net for motorcycles, scooters, mopeds, and other two-wheeled motor vehicles. It protects you from financial losses caused by accidents, theft, disasters, and third-party claims.

Here’s what it typically covers:

• Accidents Covers repair costs if your bike is damaged in an accident, regardless of who is at fault.
• Theft If your bike is stolen, the insurer pays compensation equal to the bike’s market value (based on policy terms).
• Natural Disasters Provides coverage for damages caused by floods, cyclones, earthquakes, and other natural calamities (under comprehensive policies).
• Fire Covers loss or damage to your bike caused by accidental fires or explosions.
• Third-Party Liability Mandatory by law in India. It protects you against legal and financial liabilities if you injure someone or damage their property while riding.

Why Two-Wheeler Insurance is Important?

Motor Vehicles Act, 1988 states that any motorized vehicle plying on public roads in India should have third-party liability insurance. Third-party liability insurance cover for your bike is compulsory under the law. > This covers you against any claim that can be made by third party drivers on you for injuries, damage or death related to your bike. If you ride your bike without it, you will have to face a heavy fine.

Types of two-wheeler insurance

There are mainly three types of car insurance policies available in India. Each type offers a different level of protection based on your needs and legal requirements.

• Third-party Bike insurance: This is the mandatory minimum coverage required by law in India. It only covers financial liabilities towards a third party in case of an accident, It provides financial compensation to the third party in the event of damage to the bike or bodily harm due to an accident caused by your bike.

• Comprehensive Two-wheeler policy: This offers more extensive coverage compared to Third-party liability insurance. It includes third-party liability coverage along with protection for your own bike against accidents, theft, natural disasters, and fire.

Why Choose Fincover?

• Quick Purchase Process Buying or renewing two-wheeler insurance on Fincover is simple and takes just a few minutes.

• Compare and Choose Fincover allows you to compare policies from top insurers so you can pick the one that offers the best features and price.

• Secure Online Platform The entire purchase and payment process is safe, transparent, and user-friendly.

Add-on Covers

Several useful add-on covers are available at extra cost that enhance the overall value of your policy. Here are some of the most popular ones:

• NCB Protection Cover Helps you retain your No Claim Bonus even after you make a claim during the policy term.

• Zero Depreciation Cover Ensures full coverage for replaced or repaired car parts without factoring in depreciation, meaning higher claim payouts.

• Roadside Assistance Cover Provides emergency help such as towing, flat tire change, battery jump-start, and more when your car breaks down.

• Key Replacement Cover Covers the cost of replacing lost or damaged car keys, including reprogramming of smart keys, if needed.

• Personal Accident Cover Offers financial protection for the driver in case of injuries or death due to a car accident.

• Engine Protection Cover Covers repair or replacement of your car’s engine if it is damaged due to an accident or natural calamities like floods.

• Passenger Cover Offers personal accident coverage to passengers traveling in the insured car at the time of an accident.

• Consumables Cover Reimburses the cost of consumable items like engine oil, nuts & bolts, brake oil, etc., which are not usually covered under standard policies.

Benefits of Two-Wheeler Insurance

• Financial Security Two-wheeler insurance safeguards you from hefty repair costs or the financial burden of replacing a stolen bike.

• Peace of Mind Knowing you’re financially protected allows you to ride with greater peace of mind, especially during uncertain situations.

• Legal Compliance Having at least third-party liability insurance is mandatory under Indian law, helping you avoid fines and penalties.

Documents Required for Bike Insurance

Here is a list of documents needed for an individual to buy or renew a Bike/Two-Wheeler Insurance policy:

For New Policy:

• Proof of Identity (Any One): Passport, Driving Licence, Aadhaar Card, Voter ID, PAN Card (varies by insurer)

• Proof of Address (Any One): Passport, Driving Licence, Aadhaar Card, Voter ID, Latest Bank Statement, or Utility Bills (not older than 3 months)

• Two-Wheeler Registration Certificate (RC): Mandatory proof of vehicle ownership

• Recent Passport-Sized Photographs: Number may vary depending on the insurer

• Manufacturer’s Invoice (for new bikes): Includes vehicle make, model, and purchase price

For Renewal:

• Previous Bike Insurance Policy Document: Helps carry forward existing coverage and simplifies the renewal process

• Proof of Identity (if details changed): Required for verification purposes

• Proof of Address (if details changed): Required for verification purposes

• RC Copy (optional): May be requested again by the insurer for verification

Additional Notes:

• Pollution Under Control Certificate (PUCC): Required in some cases, especially for older vehicles
• Loaner Bike Authorization (if applicable): A document from the financier, if your bike is under a loan

Two-Wheeler/Bike Insurance: Inclusions vs Exclusions

1. Accidents

Included: Repairs to your bike if damaged in an accident (own damage cover needed for comprehensive insurance)

Not Included: Wear and tear, depreciation, mechanical or electrical breakdown

2. Theft

Included: Compensation for the market value of your bike if stolen (depending on IDV and policy terms)

Not Included: Theft due to negligence (e.g., leaving keys in the ignition)

3. Natural Disasters

Included: Damage caused by natural calamities like floods, earthquakes, or cyclones (covered under comprehensive insurance)

Not Included: Man-made disasters like riots or strikes

4. Fire

Included: Losses due to fire damage to your bike (covered under comprehensive insurance)

Not Included: Fire caused due to intentional act or electrical/mechanical malfunction (may vary based on policy wording)

5. Third-Party Liability

Included: Covers financial liabilities arising from injuries or property damage caused to a third party while you’re riding your bike (mandatory coverage in India)

Not Included: Your own injuries or damage to your own bike, damage to property owned by you or co-passengers

6. Personal Accident Cover (Add-on)

Included: Covers medical expenses and financial compensation in case of accidental death or permanent disability to the rider

Not Included: Death or disability due to illness, natural causes, or self-inflicted injuries

7. Rider’s Own Damage (OD) Cover (Add-on for Comprehensive)

Included: Covers repairs to your own bike in case of accidents, theft, natural disasters, or fire (may have limitations based on policy wording)

Not Included: Depreciation according to policy terms

How to Buy Two-Wheeler/Bike Insurance?

Fincover helps you find the best two-wheeler insurance policies available in the market. Just follow these easy steps:

1. Log on to www.fincover.com

2. Enter your bike’s registration number

3. Select your bike model

4. Choose Buy Insurance or Renew Insurance

5. Browse policies from various insurance companies

6. Analyze and choose the best policy suited to your needs

7. Pay the bike insurance premium using your preferred payment method

FAQ

You can learn more from our frequently asked questions.

1. What is IDV in a two-wheeler insurance policy?

IDV (Insured Declared Value) is the maximum coverage your two-wheeler will receive under the policy. It is calculated as the current market value of the bike minus depreciation.

2. What are the factors that influence the premium amount?

Your bike insurance premium depends on the following: A. The make, model, and engine capacity (CC) of your bike B. The IDV specified by the insurance provider C. The location where your bike is registered D. Any optional add-on covers you choose

3. Is it mandatory to buy a two-wheeler insurance policy?

Yes. According to the Motor Vehicles Act, 1988, riding a bike without a valid third-party insurance policy is a punishable offence. You must have at least third-party coverage to ride legally on Indian roads.

4. What should I do if my bike is lost or stolen?

First, register an FIR at the nearest police station.Then, notify your insurance company and submit all required documents, including the FIR copy, to start the claim process.