Let’s imagine you buy a computer. You will be recommended to purchase some additional add-ons such as a UPS supply, a power supply, additional RAM, a graphics card, etc. Such add-ons will increase the efficiency of the computer. Purchasing these add-ons is at your discretion.
In a similar way, add-ons are available for bike insurance too. These add-ons can be added to your existing policy, and their primary purpose is to widen its coverage.
Is it possible to include add-ons to all bike insurance policies? How do you add these to a policy? All of these questions and more shall be discussed in this article.
So, What are Add-Ons?
Add-ons are additional benefits that can be purchased at an extra cost. You can purchase these add-ons as a part of a comprehensive policy or a standalone own damage policy for an extra layer of protection.
There are no add-ons available for third-party policy, since it covers damage to another person and their property, but not the damages caused to you. These add-ons are designed to enhance your coverage in case of theft, accident, or total loss.
What are the Add Ons Available in Bike Insurance?
Different add-ons are available for bike insurance, and each of them serves a unique purpose. It is important to note that add-ons will result in an additional premium.
Here are some add-ons you can purchase with bike insurance -
- Zero depreciation Cover
- Roadside Assistance Cover
- Engine Protector Cover
- Consumables Cover
- Key Protector Cover
- Return to Invoice Cover
- Personal Accident Cover
Please Note That The Add-Ons May Vary From Insurer To Insurer.
Let’s discuss them in detail.
Zero Depreciation Cover
Depreciation is the loss in value of a vehicle over time due to age, wear and tear. So, the value of your bike decreases each year. And, when you file a claim with your insurer, they shall pay you the claim amount after deducting the depreciation of the damaged parts.
If you opt for the zero-depreciation add-on, the insurance company will waive off depreciation when paying the claim amount under your bike insurance policy. As a result, you will receive a higher claim amount.
Roadside Assistance Cover
In case your bike breaks down or suffers a mechanical failure which leaves you stranded on the road, you can use the Roadside Assistance Cover to get on-road assistance from the insurance company.
The following services are provided -
If your bike is unable to run due to a lack of fuel and there is no fuel station nearby, you can contact the insurance company. They will make the necessary arrangements for fuel supply.
Tyre Change Support
In the case of a flat tyre, your insurance company will send a mechanic to change the tyre or tow your bike to a nearby garage if there isn't a spare tyre available.
On-Site Minor Repair
If your vehicle suffers minor mechanical or electrical problems, such as a faulty spark plug or fuse, the insurer will send a mechanic to the spot to repair the bike. This won't require the bike to be towed.
Towing FacilityYour bike cannot be repaired on the road if it encounters serious mechanical or electrical issues. As it needs major repair work, the insurer will immediately send the mechanic to the scene, who will then take the vehicle to the garage.
Please note that this is an indicative list. There might be more services provided under this cover. The services may vary from insurer to insurer.
For example, Isha was riding her bike in a somewhat deserted area. Her bike’s tyre got punctured because of broken glass pieces on the road. She had a Roadside Assistance Cover with her insurance policy, and immediately called her insurer for assistance. They sent over a mechanic to the spot, who then replaced her tyre then and there.
Engine Protector Cover
The engine is the most crucial part of a vehicle and any damage to it will cause a dent to your wallet. Usually, any damage to the engine is not covered by the bike’s comprehensive insurance policy.
The Engine Protector Cover protects you from these expenses. It covers damages or loss caused to the bike’s engine, due to oil or coolant leakage, water logging, damage of the engine or gearbox. It may also cover the cost of the replacement of the engine or its parts.
For instance, Raj's city faced heavy flooding because of excessive rains. His bike’s engine suffered severe damage due to water logging. However, since he owns an Engine Protector Cover with his policy, the costs for repairing the engine shall be borne by his insurance company.
Generally, a bike insurance policy doesn't cover consumables like nuts, bolts, oil, etc.
However, when you opt for a Consumables Cover, the insurer will not factor in the consumable costs while settling the claim. They will be borne by the insurer.
Key Protector Cover
In the event that a key is lost, damaged, or stolen, a key protector cover will cover the replacement costs. Moreover, this add-on also covers the cost of replacing or repairing the lockset.
For example, Mehak discovered that her bike's lock-set was damaged, and the key didn’t fit in. She decided to replace it. However, since she owned a key replacement cover for her bike, the insurance company compensated her for the entire cost of replacing the lock set.
Return To Invoice Cover
Insurance companies provide coverage based on the current market value of the vehicle, also known as the Insured Declared Value (IDV). The IDV of the bike factors in depreciation value.
The value of the bike depreciates as soon as it leaves the showroom. This implies that if the bike suffers damage beyond repair or gets stolen, you will receive the depreciated amount, not the original value of the bike.
However, if you opt for a return to invoice cover, you will receive the total invoice value of the bike, i.e. the original value, in case of theft or total loss of a car. Bikes less than 3-5 years old are eligible for this cover.
Personal Accident Cover
It is the most important add-on and there are two types under this category -
Personal Accident Cover For The Owner-Driver
A Personal Accident Cover provides financial protection against any accidental death or disability. The compensation shall be provided according to the limit stated in the policy.
It is mandatory, as per vehicle norms, for all bikes to have a Personal Accident Cover with a minimum of ₹15 lakhs coverage. Nevertheless, if you already have a personal accident cover of 15 lakhs for your existing vehicle, you need not buy this cover separately for your bike.
For example, Nidhi purchased a Personal Accident Cover of Rs 15 lakhs along with her existing bike insurance policy. Several months later, while driving to work, a bus hits her bike, which leaves her permanently disabled. The insurance company will pay Nidhi a fixed amount as specified in the policy.
Personal Accident Cover For Passengers
A Personal Accident Cover for passengers protects the pillion rider or passenger in case of any accidental death or disability. Although this cover is not mandatory, it is important to protect anyone riding with you.
For instance, Rahul and Soham were travelling on Rahul's bike when they suddenly met with an accident. Soham, the pillion rider, sustained a major spinal injury, causing permanent disability. Since Rahul had a Personal Accident Cover for the passenger with his insurance policy. Soham will also be compensated according to the policy limit.
How Do You Add These Add-Ons To Your Bike Insurance?
The process of enhancing your existing insurance policy with add-ons is relatively easy. Here are the steps you should follow -
Visit The Insurer's Website
When you buy bike insurance from an insurer's website, you can view the add-ons on the same page. Analyse the features available and ensure that your needs align with those offered by the add-on. You can click on your desired add-on from the list displayed on the screen, and it will be automatically added to your policy. The premium will be adjusted based on the add-ons chosen.
So, these are some of the add-ons that are available for two-wheelers. Take some time to assess your needs, preferences, and requirements before you zero in on your desired add-on. When you choose an add-on, you are required to pay an additional cost to add it to your policy.