While two-wheelers are the most convenient option to ride on busy roads, they can also be risky and prone to accidents. Therefore, every two-wheeler owner must buy a comprehensive bike insurance policy to ensure they have adequate financial assistance when they need it.
What is a comprehensive bike insurance policy?
A comprehensive two-wheeler insurance policy gives you all-inclusive financial coverage for your two-wheeler. It covers third-party liabilities as well as damages caused to your insured vehicle. This insurance policy also offers personal accident cover for the owner-rider and the pillion rider.
Key features of comprehensive two-wheeler insurance policies
Third-party liability coverage
A comprehensive two-wheeler insurance policy covers third-party liabilities. This includes damage caused to the third party’s property or vehicle. Third-party bike insurance also covers any physical injury caused to the third party in an accident involving your insured two-wheeler.
Own-damage coverage
Comprehensive policies cover the damages caused to your insured vehicle due to accidents, natural calamities, or man-made damages. These include earthquakes, riots, fire, floods, theft, or violence.
Personal accident coverage
A comprehensive policy offers personal accident cover up to Rs. 15 lakh for the owner-rider of the insured two-wheeler. It also compensates the pillion rider up to the sum insured as mentioned in the policy document.
Benefits of having a comprehensive two-wheeler insurance policy
Below are some of the benefits policyholders can get from buying a comprehensive insurance policy:
Pack of benefits at affordable premiums
A comprehensive two-wheeler insurance policy covers damages or losses caused to your insured vehicle and third party under one policy. So, you get comprehensive coverage at affordable premiums. Visit the Bajaj Finance Insurance Mall to choose from a range of affordable two-wheeler insurance policies. Here some of the leading insurers in India offer optimum two-wheeler insurance policies.
No Claim Bonus (NCB)
Most insurers offer a No Claim Bonus to the policyholder for single or multiple claim-free years. This bonus is a reward to the policyholder for riding their vehicle safely, given as a discount on the premium. You can get up to 50% for five consecutive claim-free years.
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% |
Comprehensive bike insurance add-on covers
Comprehensive bike insurance policies give you the flexibility to buy multiple add-on covers to enhance your policy coverage.
Here are some of the commonly offered add-on covers.
No Claim Bonus (NCB) protection
This cover enables you to retain your NCB even if you have claimed once in a policy year.
Zero depreciation cover
Zero depreciation bike insurance allows you to claim the full amount without deducting the depreciation value of the parts repaired or replaced.
Roadside assistance cover
Through this cover, you can avail of 24x7 roadside assistance in case of emergencies. You can get quick assistance for vehicle breakdown, empty fuel tank, and other services as stated in your policy.
Consumable cover
A consumable cover reimburses the policyholders for the repair or replacement cost of consumables. These are nuts/bolts, screws, engine oil, bearings, grease, etc. Traditional insurance plans do not usually cover consumable costs.
Inclusions of comprehensive two-wheeler insurance policy
Bike theft
The policyholder will receive financial compensation for the insured two-wheeler if stolen. In case of a total loss, policyholders get a claim amount up to the insured declared value. It is the two-wheeler's market value.
Accidental damage to the bike
Policyholders can claim the repair or replacement expenses for any minor or major damage caused to the insured bike.
Damage caused by natural disasters
The comprehensive two-wheeler insurance policies cover two-wheelers against damages caused due to natural disasters like earthquakes, floods or cyclones.
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 or strikes. These policies also provide coverage against damages caused by fire due to explosions, self-ignitions, or lightning.
Exclusions of comprehensive two-wheeler insurance coverage
Here are the situations under which insurers do not provide any coverage against a comprehensive bike insurance policy.
Consumables costs
A comprehensive bike insurance policy does not cover repairing or replacing consumables. Consumables include nuts/bolts, engine oil, grease, etc. Policyholders must avail of a consumable add-on cover as a rider to receive compensation for the repair or replacement costs 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 licence
If the owner/rider rides the two-wheeler without a valid licence, the insurer will not extend any coverage for any damage caused to the bike.
Electrical or mechanical failure
The insurer will not cover the damages caused to the two-wheeler due to mechanical or electrical breakdown.
Damage caused outside the specified geographical jurisdiction
The insurance company does not cover two-wheelers damaged or stolen outside the specified geographical jurisdiction or outside India.
Regular wear and tear
A comprehensive two-wheeler insurance premium does not cover the regular wear and tear of the two-wheeler. These wear and tear occur 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
IDVis the maximum claim amount that the insurer will reimburse in the event of the two-wheeler's total loss or theft. It is one of the parameters to evaluate two-wheeler insurance premiums. The insurance premium is directly proportional to the two-wheeler's insured declared value. One can easily compute the IDV of bike insurance by subtracting the accumulated depreciation amount and the cost of accessories.
No Claim Bonus (NCB) and other discounts
This is majorly effective during renewals. If you had one or up to five claim-free years, in that case, you must have accumulated the NCB. You can avail of this bonus to get up to 50% discount on the premium, depending on the number of claim-free years you have. Hence, accounted while deciding the renewal premium.
Furthermore, installing an ARAI-approved anti-theft device on the two-wheelers also helps policyholders receive a discount on bike insurance premiums. As it marks, you have ensured full security of your vehicle.
Vehicle cubic capacity
To ascertain the two-wheeler's comprehensive insurance premium, policyholders must factor in the two-wheeler's cubic capacity. It defines the performance of the two-wheeler and the total engine power output
Add-on covers
The add-on covers also known as riders come at an extra premium and significantly impact the comprehensive two-wheeler insurance premium. Hence, policyholders should consider the cost of each two-wheeler insurance add-on cover or the overall cost of all the chosen add-ons. It will help estimate how much they must bear additionally over and above the insurance premium.
Comprehensive two-wheeler insurance vs third-party two-wheeler insurance
Know how comprehensive two-wheeler insurance differs from third-party two-wheeler insurance.
Comprehensive two-wheeler insurance policy | Third-party two-wheeler insurance policy |
Offers extensive coverage for own damage and third-party liabilities due to an accident. Furthermore, a comprehensive two-wheeler insurance policy offers personal accident cover and damages caused due to theft, loss, or natural and man-made activity. | Offers financial assistance only for damages caused to a third-party vehicle, property, or person. |
You can avail of the add-on covers like a zero-depreciation cover, roadside assistance cover, and more with additional premium on the comprehensive two-wheeler insurance policy. | You cannot opt for any add-on covers on a third-party two-wheeler insurance plan. |
Premium is higher. | Premium is lower and standardised by the IRDAI. |
A comprehensive insurance policy is an optional protection policy. | A third-party liability cover is mandatory as per the Motor Vehicles Act. |
A comprehensive two-wheeler insurance policy provides holistic coverage for your two-wheeler. Choose from a range of comprehensive bike insurance policies from Bajaj Finance Insurance Mall. Here leading insurance companies in India offer affordable two-wheeler insurance policies. Check the policies below.
Comprehensive bike insurance | |||||
Bike insurance company | Network garages | Third-party cover | Personal accident cover | Claim settlement ratio | Starting premium |
ACKO Bike Insurance | - | Yes | 15 lakh | 95.45% | Rs. 702* |
Bajaj Allianz Bike Insurance | 6,500+ | Yes | 15 lakh | 98% | Rs. 824* |
SBI General Bike Insurance | 6,600+ | Yes | 15 lakh | 92% | Rs. 753* |
HDFC ERGO Bike Insurance | Yes | 15 lakh | 93.4% | Rs. 538* | |
ICICI Lombard Bike Insurance | 6,100 | Yes | 15 lakh | Rs. 588* | |
