What's Covered When You Renew Bike Insurance?
Insurance is when you secure your assets, for example, home, vehicle, or health, with a company on an insured amount for which you agree to pay the premium every year. In short, insurance is to cover the financial loss of an insured asset.
Now, if you are a bike lover, you would generally insure your vehicle against damage or theft by paying a certain amount of premium till the policy matures, i.e., tills the end of the policy tenure. Then, you have to renew bike insurance after an estimated period. As per the Motor Vehicle Act 1988, the government has mandated third party bike insurance. Third-party bike insurance is where the insured is covered for third-party obligations in case of accidents, damage to property, and loss of life.
You can reap multiple benefits when you get your vehicle insured. Some of the benefits include:
- Accident cover for the co-rider (i.e., if a third person got injured during an accident)
- Personal accident cover of up to Rs. 15 Lakhs, which is made compulsory by IRDA (Insurance Regulatory and Development Authority)
- You will be riding on the right side of the law, hence, no penalties.
There are few add-ons to the cover, such as:
- Emergency Roadside Assistance - Emergency assistant cover which covers major and minor repairs to your bike caused due to unfortunate accidents.
- Return to Invoice - When bike insurance is claimed, the return is in IDV (Insured Declared Value). This is a fixed sum assured for your bike, which varies from the vehicle’s on-road price. If you want to mitigate this difference, you can also claim the return to invoice feature which provides an amount equal to the bike’s on-road price on claims made for theft or damage.
- Zero Depreciation Cover - A bike or vehicle comes under fixed assets. Thus, it is liable for depreciation where a fixed percentage of the amount gets depreciated every year from the original value. This ultimately reduces the bike’s price. Still, with zero depreciation cover, the insurer does not consider the depreciation value.
However, these insurance benefits are bound to change when you renew the same insurance plan. Some benefits might be covered, but some may not. Let’s understand how to renew bike insurance and also the pros and cons of the same.
Bike Insurance renewal options
There are two options to renew your bike insurance.
- Renew bike insurance online
- Renew bike insurance offline
Renew bike Insurance online
You can renew bike insurance online by following these easy steps:
- Check and compare different vehicle insurances and the benefits of the same
- Head on to online platforms that offer bike insurance
- Enter the biker information and registration number
- Refer to the previous policy and fill in the details
- After calculating, you will get the premium amount
- Now simply pay the premium amount
- Your policy is renewed and will be sent to you shortly
Renew bike insurance offline
You can also renew bike insurance through an offline process. For the offline process, you can visit the nearest office, fill the form, and submit the same along with the printout of the previous policy. Pay the latest premium calculated by cash/demand draft or cheque. However, it is advised to get your bike insurance renewal online, at your convenience.
The things which are covered when you renew bike insurance:
- Bike parts are covered under the insurance plan. However, the insurance claim is only applicable when you repair your bike from an authorized dealer
- Damage or loss due to natural calamities or by human activities
- Damages by fire or ignition
- Damages by accidents
- If the vehicle gets stolen
The things that are not covered when you renew bike insurance:
- General wear and tear of the bike
- If the vehicle gets damaged outside the borders of the country
- Damage caused due to penalized action, i.e., riding without a helmet or under the influence of narcotics or alcohol, or if the rider is driving without a valid driving license
- Damage in prohibited roads or zones
- Damage caused under or due to the act of war
- Damage due to commercial purposes, such as renting or racing
- Claim is settled only after considering the depreciation value of the bike if there is no depreciation cover included in the policy
Factors that may affect when you renew bike insurance:
- The age of the vehicle at the time of the insurance may affect the renewal of the insurance.
- Coverage and type of your previous bike insurance may affect the renewal of the insurance.
- The model of the bike and its continuity, engine, and cubic capacity may affect the renewal of the insurance.
- If the bike’s cubic capacity is higher, then the premium will also be on the higher side.
- NCB or no claim bonus is the discount provided to the policyholders for paying timely premiums in the previous policies where the discount may go from 20% to 50%.
- If the bike is customized, then the premium may go on the higher side.
- If the bike has any device for safety purposes, such as a burglar alarm, the premium gets on the lower side.
Thus, timely renewing your bike’s insurance has a lot of perks and benefits. It helps in safeguarding the life of the insured and the bike. Multiple benefits are covered as add-on covers depending on the condition of the bike.