When considering buying insurance for your bike, you should know that there are three types of coverage available. The choices include third-party, own damage, and comprehensive cover. The Motor Vehicles Act mandates a two-wheeler to have at least a third-party bike insurance. Thus, the choice of whether to go with comprehensive or own damage insurance for the bike lies with the bike owner solely. However, choosing either is not as much a personal decision as it is related to the existing risks of riding the bike on roads and the various advantages of each type. There are a few essential things to be considered while going for an own damage bike insurance.
You must know that to avail an own damage bike insurance, you do not need to purchase a standalone cover. Comprehensive bike insurance enables policy purchasers to have the benefit of both own damage and third-party liability coverage. Now, let’s have a look at the scenarios when you should consider availing an own damage cover for your two-wheeler.
Situations that Demand Own Damage Insurance for Bikes
The situations given below highlight the possible risks that bikes carry in their everyday use. These also lead to financial liabilities of various kinds. It is always useful to comprehend these risks beforehand and avail a suitable own damage insurance for the bike that provides adequate compensation for liabilities caused by an unfortunate road incident. Below mentioned are some situations that necessitate the need for own damage insurance for bikes.
- Road accident leading to bike damage
In the case of unfortunate road accidents that result in bike damage, the cost of repair or replacement of essential vehicle components can be high. To ensure that you don’t have to take the financial burden of such expenses, an own damage bike insurance policy is required.
- Damage to the bike due to a natural calamity
Many times, your bike can also be damaged as a result of getting trapped amidst a natural calamity, like an earthquake, landslide, flood, tsunami, or anything else. It is prudent to consider such a risk and avail a suitable own damage cover to hedge the losses emerging from those incidents.
- Theft or robbery leading to loss of bike
There are also chances that you may have to encounter the loss of your bike due to theft or robbery. Such an incident means a heavy loss for you. A suitable own damage cover in place helps compensate for the complete market value of your lost bike. You may also install anti-theft devices, which helps minimise the chances of theft and also saves on the policy premium.
- Complete or partial damage to the bike due to man-made incidents
Various man-made incidents like riots, fire, etc. can also lead to a complete or partial loss of your bike. This can be covered adequately with an own damage bike insurance.
- Need for additional coverage
There may also be various other circumstances like fast depreciation, mechanical damage to the engine, or accident of the owner, rider or passenger. An own damage cover also comes with several add-on facilities that can protect against these instances. Riders of your choice can be selected at an added premium rate.
Conclusion
While the above discussed are the top considerations for buying own damage insurance for bikes, you need to consider other crucial aspects as well. For instance, when purchasing an own damage or comprehensive cover, you must check its premium and compare insurers to get the most affordable policy. When going for a bike insurance policy renewal, you can utilise NCB earned from one or more unclaimed policy years to get discounts on premiums. Today, vehicle insurance is provided by both dedicated motor insurance and general insurance companies in India. Hence, you will not find it challenging to pick a suitable insurer to purchase your bike cover, as the choices are many.
