What Is Comprehensive Bike Insurance

Owning a bike is more than just enjoying the thrill of the ride or the convenience of getting from one place to another; it's also about ensuring that both you and your bike are protected from the unexpected. Whether you're navigating a busy city or enjoying a leisurely cruise on a scenic highway, having the right bike insurance is crucial. A comprehensive bike insurance policy doesn't just fulfil legal obligations - it provides peace of mind, financial security, and essential support when you need it most.

In this guide, let’s discuss everything you need to know about comprehensive bike insurance in India. From understanding the basic insurance types to inclusions exclusions of comprehensive bike insurance, this guide aims to help you make an informed decision so you can ride confidently, knowing that you’re well-protected. Let’s dive in and explore how comprehensive bike insurance can safeguard your ride and your finances.
 

What Is Bike Insurance?

A bike insurance policy is a type of insurance designed to cover motorcycles, scooters and certain types of two-wheelers. It is primarily meant to protect you or your passenger on the bike against financial losses you may encounter due to damages caused by accidents, theft, natural disasters, third-party liabilities, etc. According to the Motor Vehicles Act 1988, 3rd party bike insurance is compulsory. Driving on a public street without insurance is an offence under this Act. If you’re purchasing bike insurance, whether online or through traditional methods, make sure to choose an insurer licenced by the IRDAI (Insurance Regulatory and Development Authority of India).
 

Types Of Bike Insurance

Here are some of the types of insurance policies for bikes -

• Third-party Insurance
  This insurance is required by law as it shields you in case you cause property damage or body injuries to a third party. However, it does not cover any damage to your own vehicle.
   
• Comprehensive Insurance
  It enables you to claim compensation if your motorbike is damaged in an accident or stolen. Additionally, you can also make claims involving any damages caused to the third party. Thus, this type of insurance covers both your bike and third-party damages.
   
• Standalone Own Damage
  This policy only covers accidents, fires, or thefts that damage your bike. It does not include any third-party damages. But remember, as per the motor law, you must have separate third-party coverage.
   

Understanding Comprehensive Bike Insurance In Detail

As mentioned earlier, this policy covers accidental fire, theft, damage sustained by your bike and damages caused by your bike to a third party involved.

Key Features Of Comprehensive Bike Insurance

Here are some of the highlighting features of the comprehensive bike insurance -

• Third-Party Coverage
  During accidents, if you cause bodily injury, property damage, or death to someone, then such Comprehensive bike insurance protects you from legal liabilities.
   
• Own-Damage Coverage
  Comprehensive bike insurance also covers any loss or damage to your vehicle during accidents, natural disasters, theft, and other man-made incidents.
   
• Personal Accident Cover
  It also provides financial support if you or the driver pass away or suffer injuries. However, this isn't included by default; you'll need to buy it with an additional premium. Remember, it's mandatory, so you can either add it to your bike insurance or buy it separately.
   
• No Claim Bonus (NCB)
  It is a bonus given by the insurer that gives you a reduction on your premium when you do not make any claims during a policy year.
   
• Add-On Covers
  Besides, there are optional add-ons that can be included with your basic policy in order to increase its coverage such as roadside assistance, consumables cover, zero depreciation among others.
   
• Voluntary Deductibles
  When choosing a voluntary deductible, it implies that you have decided to pay a portion of the claim money before the insurer steps in to pay the remaining amount. Since this reduces the burden on the insurer, you will acquire lower premiums.
  
  However, you’ll have to pay the voluntary deductible each time you file a claim, in addition to other fees and charges. So, keep this in mind before choosing this option to avoid unexpected surprises later on.
   
• Coverage for Accessories
  In addition, bike insurance also covers repair or replacement costs for electrical/electronic accessories and non-electrical/electronic accessories attached to your bike, provided they are declared and mentioned in the policy document during purchase.
   
• Geographical Coverage
  Even though your bike insurance works within India’s boundaries, you may consider extending it when riding into some neighbouring countries. It’s like adding an extra layer of cushioning around your travelling plans and ensuring the safety of your motorbike wherever you go.
   

What Is Covered Under Comprehensive Bike Insurance?

Here are some situations covered by a comprehensive bike insurance policy -

• Accidents
  The policy covers any damages or losses incurred due to a road accident.
   
• Theft
  If your bike is stolen, the bike insurance covers the incurred loss.
   
• Fire
  The policy covers any damage sustained by your bike as a result of a fire accident.
   
• Permanent Disability/Death
  It covers you (the owner-driver) if you unexpectedly pass away or suffer permanent disability due to an accident. But, this coverage is applicable only if you’ve purchased a personal accident cover for yourself.
   
• Third-Party Bodily Or Property Damage
  Any damage you cause to a third party or their property involving your bike is covered.
   
• Manmade/Natural Disasters
  It covers any loss or damage your bike sustains due to floods, cyclones, riots, etc.
   

What Is Not Covered Under Comprehensive Bike Insurance?

Your bike insurance will not cover the following -

• Consequential Damages
  Any damages that do not result from an accident directly are called consequential damages and these are not typically covered by bike insurance.
   
• Wear And Tear
  The policy does not cover regular wear and tear, such as minor scratches, minute dents, etc., sustained by your bike.
   
• Intoxication/Drug Usage
  The policy does not cover any damage or loss sustained while driving the bike under the influence of alcohol, drugs, etc.
   
• Mechanical/Electric Failure
  The policy does not cover any mechanical or electric failures suffered by your bike, like faulty wiring, etc.
   

Add-ons In Comprehensive bike insurance

You have the freedom to boost your bike insurance coverage by adding various optional benefits called add-ons, which are designed to serve unique purposes and are charged a specific extra cost.

Here are some of the add-ons you can opt for under the comprehensive bike insurance -

• Zero Depreciation Cover
  As your vehicle ages, it naturally loses its value due to a number of factors like wear and tear, etc. This process is known as depreciation. When it’s time to make a claim, the insurer typically considers the depreciation and then computes the claim amount for the damaged parts due to the accident before giving you compensation.
  
  But, if you have a zero-depreciation add-on, the insurer will not factor in depreciation for the claim. This means they’ll offer you a higher claim amount.
   
• Roadside Assistance Cover
  Suppose you are driving down the highway when, suddenly, your motorcycle breaks down. You can't find a mechanic around. This is when roadside assistance cover comes in handy. It includes the following services to help you in handling unexpected events with ease -
  • Fuel Supply
    When the fuel in your bike runs out and there are no petrol stations near you, just call your insurance provider. They will get the fuel to you and quickly make the required arrangements.
     
  • Support For Tyre Changes
    Your insurance company will provide a mechanic to fix a puncture on the spot for you, or if there isn't a spare, they will transport your bike to the nearest garage safely.
     
  • On-site Minor Repairs
    Say your bike suffers minor electrical or mechanical issues, such as a blown fuse or spark plug in the middle of the road. Your insurance company will then send a professional to the location, saving you the hassle of towing your vehicle.
     
  • Towing Company
    If your motorbike has some severe mechanical or electrical faults which could not be rectified at that moment, an insurance company would send a mechanic to your doorstep without delay. Afterward, they will make arrangements for towing your bike to some workshop so that the required repairs are completed.
    
    But be aware that the exact roadside services provided may vary depending on your particular insurance provider.
     
• Engine Protector Cover
  The bike’s engine is the most critical component; hence, any damage to it could be expensive. Mostly, comprehensive bike insurance does not cover engine damage. But with an engine protector cover, you can shield your motorcycle's engine from losses or damages due to issues like water damage, gearbox and engine damage, or leakage of oil or coolant. It might also pay for the price of having the engine or any of its parts replaced.
   
• Consumables Cover
  Generally, a standard bike insurance policy does not cover consumables like oil, bolts, nuts, etc. So, you are responsible for paying for them when filing a claim. If you add coverage for consumables to a policy, then your insurance provider will pay for these costs as part of resolving your claim.
   
• Key Protector Cover
  The key protector cover will give you financial protection when your keys are stolen, lost, or damaged. It covers the cost of changing the key and fixing or replacing the lockset.
   
• Return To Invoice Cover
  Insurance companies base the coverage on the current market value of your bike, known as the Insured Declared Value. Since the value of your bike depreciates from the time it leaves the showroom, this IDV value takes depreciation into consideration. Therefore, you would normally get the depreciated amount and not the full value of the bike in case your vehicle suffered heavy damage or got stolen.
  
  If you choose to return to invoice coverage, though, you will be able to recover the full invoice amount (original value) of your motorbike if it is stolen or if it is considered a total loss. Bikes three to five years old can choose this option.
   
• Personal Accident Cover
  Personal accident cover is available in two types -
   
• Personal Accident Cover For The Owner-Driver
  Such a cover provides you with financial protection in the event of an unfortunate death or disability. The amount of compensation is governed by the stated limit of the policy.
  
  As per the vehicle laws, having a personal accident policy with a minimum coverage of Rs. 15 lakhs is mandatory for every owner of a motorcycle. However, if you already have a personal accident cover of Rs. 15 lakhs for your current vehicle, you don't need to buy a separate one for your bike.
   
• Personal Accident Cover For Passengers
  Under this, pillion riders are protected from the financial burden in the case of an unfortunate death or disability. Though it is not mandatory, protecting anybody who may be travelling with you is prudent.
   

Why Should You Buy Comprehensive Bike Insurance?

Here’s why investing in comprehensive bike insurance is worth every penny -

1. Safeguards Against Natural And Man-Made Calamities
   Comprehensive bike insurance coverage protects you against all types of natural and man-made calamities that may require costly repairs or even render your bike a total loss. Bike insurance provides coverage and financial protection from such kinds of disasters. It is prudent to have such coverage.
    
2. Protects Against Third-Party Liability
   Unlike cars, bikes are prone to more accidents. And if you don't have bike insurance, you would be held legally responsible for any third-party injuries or property damage caused by your bike. In that respect, third-party liability might burn a big hole in your pocket. As far as legal liabilities are concerned, the Motor Vehicle Act will protect you against property damage, death, or bodily injuries.
    
3. Covers Thefts Of Your Bike
   A bike insurance policy covers you in case your bike is stolen or lost. Once your claim is approved, you'll be compensated with either the Insured Declared Value (IDV) or the current market price of the bike.
    
4. Mandatory By Law
   According to the law, your motorcycle should be covered by at least third-party insurance. So, comprehensive insurance can protect you financially and legally.
    
5. Wider Coverage
   The foremost advantage that this policy offers is its wider scope of coverage. Other than third-party liability, it protects you against monetary losses arising from your own damage. So, be it natural or man-made calamities that cause the damage, your policy has got you covered. In the worst scenario, if your bike gets stolen, then your insurer shall bear the financial loss incurred with respect to the market value of the bike.
   
   Comprehensive bike insurance, therefore, gives you all-around protection and is, hence, the most recommended by many insurers.
    
6. Add-on Availability
   The optional add-ons are only available with comprehensive bike insurance plans. The add-ons are designed to stand by your side in times of specific needs. They enhance your coverage, thereby leading to higher payouts.
    
7. Secures Your Finances
   As already discussed, it protects you from repair costs, theft and third-party liability. Knowing that you are financially secure gives you a sense of reassurance. When a bike-related emergency strikes, you can count on your insurance to step in and provide you with the financial assistance you need.
    

Who Should Purchase Comprehensive Bike Insurance?

A comprehensive bike insurance policy is a smart choice for any bike owner due to its broad coverage and straightforward claims process.

This policy would be worth considering in the following cases -

• You want to buy a new bike.
• You want to buy an expensive bike.
• You expect big repair bills.
•  You need complete protection against damage and theft.

Comprehensive insurance protects you against a wide range of hazards and gives you peace of mind when driving.

Now, you might be wondering how it differs from third-party insurance. Let's understand-
 

Comprehensive Bike Insurance Vs Third-Party Bike Insurance: Key Differences

Here’s a table outlining how comprehensive bike insurance and third-party bike insurance differ from each other in various aspects -

How To Buy Comprehensive Bike Insurance Online From SMC Insurance?

Here’s a step-by-step guide to help you with buying comprehensive bike insurance from SMC Insurance online -

1. Visit The SMC Website: Open your browser and go to the SMC website.
2. Click Bike Insurance: Look for the bike insurance section and click on it.
3. Enter Bike Details: You’ll need to fill in information about your bike, such as the make and model, fuel type, variant, and the place where it’s registered, etc.
4. Enter Claim Details: Provide details about your insurance claims, including your No Claim Bonus (NCB) if applicable.
5. Get Quotes: After entering all the necessary information, you’ll be directed to a page displaying quotes from various insurance companies.
6. Select A Quote: Review the quotes and choose the one that best suits your needs.
7. Proceed to Payment: Before making the payment, double-check all the information you entered to ensure they are correct. Once everything looks good, proceed to make the payment.
    

How To File A Comprehensive Two-wheeler Insurance Claim?

In comprehensive bike insurance, there are two types of claims: cashless claims and reimbursement claims.

Cashless Claim:

When making a cashless claim on your comprehensive bike insurance, follow these steps:

• Notify The Insurance Company
  As soon as an accident occurs, inform your insurer about the incident and the damages by providing all the necessary details.
   
• Choose A Network Garage
  Take your bike to a network garage to repair the damages. You’ll need to provide the insurer with the garage's name and address since cashless claims are only valid at network garages.
   
• Provide An FIR Copy (If Required)
  If a third party is involved or there has been an accidental death, the insurer may ask for a copy of the First Information Report (FIR).
   
• Surveyor Appointment
  Once the insurer receives all the necessary information, they will appoint a surveyor to visit the garage and assess your bike's condition.
   
• Surveyor's Approval
  If the surveyor gives the green light, the garage can start the repair work.
   
• Document Submission
  The surveyor will need you to sign a few documents:
• • Claim Form: This form details your claim.
  • Satisfaction Voucher: This confirms you are satisfied with the repairs before the claim payment is released.
  • Discharge Voucher: This specifies the amount payable to you during the claim settlement, which you need to acknowledge and confirm by signing.
     
• Additional Documents
  You’ll also need to provide:
• • A copy of the RC (Registration Certificate)
  • Your driver's license
  • A form of ID proof
     
• Assess The Final Bill
  After the repair work is finished, the garage will send the repair bill and invoice directly to your insurance company. The insurer will review these documents, deducting any compulsory deductibles and consumable charges. They will pay the approved amount directly to the garage. You will then need to pay the compulsory deductible and any consumable charges directly to the garage.
   

Reimbursement Claim

If you need to make a reimbursement claim after an accident, here are the steps you should follow:

• Notify Your Insurance Company
  First, let your insurance company know about the accident as soon as possible.
   
• Submit Necessary Documents
  You'll need to provide several documents, including:
• • A fully filled claim form
  • A body-shop estimate from the workshop
  • A copy of the FIR if any third party is involved or if there has been a fatality

Note: The list of required documents may differ depending on your insurer.

• Surveyor Appointment And Approval
  The insurance company will promptly assign a surveyor to inspect your bike at the garage. Once the surveyor approves the repairs, the garage can start the necessary work.
   
• Pay The Garage
  After the repairs are completed, you'll need to settle the entire bill with the garage.
   
• Initiate Reimbursement Process
  Send the bill, invoice copy, and any other necessary documents as requested by your insurance company to initiate the reimbursement process.
   

Documents Required For The Comprehensive Two-Wheeler Insurance Claim

Here's what you'll need to file a comprehensive two-wheeler insurance claim:

• Your insurance policy copy.
• A receipt showing payment of vehicle tax.
• An estimate for repair costs from the garage, signed and stamped.
• The original repair invoice and payment receipt were signed and stamped by the garage. For a cashless claim, only the repair invoice is needed.
• A claims discharge cum satisfaction voucher, signed across a revenue stamp.
• Vehicle inspection address details if the vehicle wasn't taken to the nearest garage.
• A verified photocopy of your driver's licence at the time of the accident, along with the original.
• A verified photocopy of the registration certificate, along with the original.
• Your PAN Card.
• Your Aadhar Card.
• A photocopy of the Pollution Under Control Certificate.
• A cancelled cheque or passbook, specifically required for reimbursement claims.

Having these documents ready will help streamline your two-wheeler insurance claim process.
 

Wrapping Up!

Owning a bike is beyond the joy of riding; it also means being responsible and prepared for any unforeseen events. Comprehensive bike insurance in India provides a robust safety net against financial losses due to accidents, theft, natural disasters, and third-party obligations. Choosing the right kind of insurance policy will provide a sense of peace and financial stability to enjoy the freedom of the open road. So, as you get ready for your next ride, make sure you have the right insurance in place to protect you and your bike.
 

FAQs