Riding bike is a lot of fun. For some people it’s a necessity and for some it’s passion. Whatever be the purpose, you are required to insure your bike mandatorily by law.
Still, more than 50% of the bikes running on Indian roads are not insured. Isn’t that a shocking figure? Many people in India are of the mindset that buying comprehensive two-wheeler insurance is not worth the price. Most people do not buy or renew their bike insurance just to save few bucks in a year.
The question is, Price VS Coverage, what works?
It’s compulsory in India to have third party liability insurance that covers your legal liability for the bodily injury, death and any damage to property caused by your bike to third party. Comprehensive bike insurance policy offers third party liability cover as well as cover for ‘own damage’. Own damage cover includes the coverage for any damage or loss to your vehicle and personal accidental cover for yourself.
One should realize the objective of buying the bike insurance and decide the coverage based on the same. It’s important to have comprehensive and adequate coverage. Price that you pay for the adequate coverage is always worth it.
Let’s take a look at the below instance to understand what works better for bike insurance- price or coverage!
28 year old Rahul works for a FMCG company in Bangalore. Last month when he was driving back home, his bike was hit by a van coming from the other side of the road. He was painfully injured and rushed to hospital immediately. He was discharged after a week of the accident. Post discharge, he got to know that his bike was badly damaged and not in a working condition. Rahul did not have enough funds to get his bike repaired. Coming from a middle class family, he felt the pain of managing such situation financially. Rahul could have avoided such pain of going through financial difficulty if he had insured his bike.
Unfortunately, there are many people like Rahul who realize the importance of ‘adequate coverage’ for their valued asset only at the time of loss. Until then, they prefer to stay under the impression that bike insurance is not worth the price and waste of money. Hence, adequate coverage is what we should look for in the bike insurance.
As per recommendations from experts, below are the types of coverage that one must consider in bike insurance along with third party liability cover:
Coverage for Damages (Both man-made and natural) to your Two Wheeler
When it comes to metro cities, there are lot many cases of theft and burglary. In most of the cases, your bike either gets stolen or damaged. Strikes and riots can also cause damage to your asset sometimes. Comprehensive insurance policy covers all such damages caused due to man-made reasons. Policy also covers damages caused due to natural reasons like lightening, fire, earthquake, explosion, cyclone, hurricane and landslides etc. It also covers damage during transit and damages or loss due to accident.
Coverage to Rider for Bodily Injury and Death
Comprehensive bike insurance policy offers protection to rider or owner of the bike while riding. Rider gets the coverage for bodily injury caused due to accident. Policy also provides death cover for the rider. Sometimes even the pillion rider is covered by the policy.
Apart from this, you can avail extra add-ons depending on your requirement.
Moving on to pricing, cost of the insurance also matters as the inflation rate and cost of living is going up. But, bike insurance premium cost can be reduced to an extent with a little effort. All that you need to do is compare the policy and shop around for the offers to get a good deal. Understand the factors that influence pricing such as Insured declared value, vehicle type, manufacturer, your personal details etc. declare the information correctly and make use of No claim bonus benefit (if applicable) and renew the policy on time to get the desired coverage at an affordable rate.
To sum it up, both price and coverage are important in bike insurance. Just to save few bucks, it’s not ideal to go for bare minimum coverage or avoiding insurance completely. To make your bike insurance work for you, there just has to be a little tuning between coverage and price. Ideal policy offers you adequate coverage at the reasonable price.