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Two Wheeler Bike Insurance April 3, 2020
Bike is one of the most convenient and easiest modes of transport. However it is riskier and is more prone to accidents as compared to other vehicles. Hence, bike insurance which provides complete coverage to your bike is a must. Third party insurance is mandatory under the Motor Vehicles Act for all the vehicles, but you should opt for comprehensive bike insurance as it provides complete coverage to the bike and the owner on happening of a road accident. The premiums of the third party insurance policy is fixed by Insurance Regulatory and Development of India (IRDA) and is same for across all the insurance company whereas the premium of the bike comprehensive insurance policy is fixed by the insurance provider as per the pricing policy of the insurance company after considering various factors and is generally higher than the premiums of third party insurance.
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Comprehensive bike insurance provides coverage for third party liability, personal accident, own damage, and theft or loss of the insured bike. The premiums of the comprehensive bike insurance policy is higher owning to higher coverage and benefits and it contains various premium components which are added up to calculate the final amount of premium to be paid for the comprehensive bike insurance policy.
Comprehensive Bike Insurance policy provides coverage from various damages and the coverage for each damage form part of the components of the comprehensive bike insurance premium. If you are wondering what are the components of comprehensive bike insurance premium, then let’s discuss six essential components of comprehensive bike insurance premium:
Third party liability premiums are fixed for all the insurance plans across all the insurance companies. Third party liability means all the damages caused to the third party or third party property due to an accident by your bike. The third party liability premium depends on the engine capacity of the bike. Higher the engine capacity higher will be the third party liability premium. It also depends on the period of comprehensive insurance which can be annually or three years basis. Third party liability premium forms an essential part of the comprehensive bike insurance premium
Own damages refers to the damages caused to the insured bike due to an accident. All the expenses of the repair of the bike are covered. The own damages premium is calculated by the insurance company considering various factors such as type of bike, age of the bike, fuel variant, make model variant, the market value of the bike, risk evaluation, where the bike is registered, modifications, etc. The own damages premiums hugely depends on the IDV Value of the bike and on the modifications done on your bike. Insured Declared Value or IDV Value of the bike means the current market price of the bike.
Personal Accident means injury or damages caused to the driver or owner of the vehicle due to an accident. It also covers the death of the driver/owner of the bike. Personal accident is mandatory under the Indian Law and every individual owning a bike is required to get a personal accident cover of up to Rs 15 lakh. The personal Accident premium is determined by the insurance provider. The premium of the personal accident is Rs 750 for coverage of Rs 15 Lakh.
No Claim Discount refers to the discount offered to the holder of the policy for every claim free policy years. No claim bonus is provided only on the existing insurance policy. The discount increases for each claim free year and is offered up to a maximum of 50%. No claim discount is offered at the time of renewal of the insurance plan. Hence no claim discount matters at the time of renewing of the comprehensive bike insurance policy
Other additional discounts are offered in the comprehensive bike insurance policy such as if you get a higher sum insured in the insurance policy, you can get a premium discount, if you install safety features on your bike then you can get premium discounts, also if you buy the comprehensive bike insurance policy online you can get a premium discount. You can ensure these to get premium discounts on your comprehensive bike insurance policy and if you are eligible for these premium discounts it reflects in the calculation of the aggregate premium for the bike insurance policy.
GST also forms part of the components of a comprehensive bike insurance premium. GST is calculated as 18% of the aggregate premium amount and is added to the amount of premium to be paid for the comprehensive bike insurance policy.
The premium of a comprehensive bike insurance policy depends on various factors and is according calculated by the insurance company. There are six basic components that form part of the comprehensive bike insurance premium. Some components of the comprehensive bike insurance policy are fixed such as personal accident premium and third party liability premium whereas some of the components can be influenced and controlled by you such as own damages premium, no claim discount, additional discounts, etc. You should compare various bike insurance policies from various insurance companies online to ensure to get a policy at a lower and affordable premium cost.
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