How To Choose The Right Two-Wheeler Insurance For Your Bike Type

Choosing the right two-wheeler insurance involves understanding your bike, riding habits, insurance types, and add-on covers and calculating the correct Insurance Declared Value (IDV). This blog will guide you through the key steps to pick the best bike insurance.

How to choose insurance based on your bike type

Here are the steps to follow when choosing insurance based on your bike type.

1. Understand The Type Of Your Two-wheeler

There are different categories of two-wheelers: geared bikes, scooters/mopeds, superbikes/cruiser bikes, sports bikes, and electric bikes. Each has distinct features and price points. 

Your insurance premium is calculated based on:

• Engine Capacity: The higher the CC, the higher the premium
• Make And Model: Premium for popular brands or models is higher
• Year Of Manufacture: Newer bikes attract higher premium
• IDV Or Insured Declared Value: Higher IDV means higher premium
• Accessories: Add-ons like alloy wheels and disc brakes increase the premium

So first, understand what bike you own—its category, brand, CC, and year of manufacture—as these decide the base premium.

2. Analyse Your Riding Habits And Needs

Your riding habits and needs also impact the two-wheeler policy:

• Where do you mostly ride - within the city, highways, or hilly areas?
• What's your daily commute distance?
• Do you carry a pillion rider frequently?
• Where do you park your bike - garage, street-side, office parking?
• What safety gear do you use - helmet, gloves, knee guards, etc?

The risks associated with your riding behaviour determine policy inclusions like:

• Add-on covers
• Voluntary deductible amount
• No Claim Bonus eligibility

3. Compare Between the Main Types of Insurance Policies

There are three main types of two-wheeler insurance policies to choose from:

1. Comprehensive Bike Insurance Policy

This is a full-coverage policy that includes both own damage (OD) cover and third-party liability. It offers protection against:

• Own damage to your bike due to accidents, theft, fire, natural disasters, or riots.
• Third-party liability for injury or death caused to others, or damage to their property.

Comprehensive policies offer the most extensive protection, but they come with a higher premium.

2. Third-Party Bike Insurance Policy

This policy covers damage or injury caused to third parties, but it does not cover damage to your own bike. It includes:

• Death or injury to third-party persons
• Property damage to third parties

It’s mandatory under Indian law, and the premium is determined by the Insurance Regulatory and Development Authority of India (IRDAI), based on your bike’s cubic capacity.

3. Own Damage (OD) Bike Insurance Policy

This policy only covers damages to your bike (due to accidents, theft, fire, etc.) but does not provide any third-party liability coverage. It's ideal for riders who already have third-party insurance in place.

Choosing between these options depends on your preference for coverage. Most riders opt for a comprehensive policy as it offers a wider range of protection.

4. Evaluate must-have add-on covers

While basic OD and TP cover may seem enough, your bike faces other risks, too. The right add-ons can provide comprehensive protection. 

Here are some must-have add-ons:

• Depreciation cover: Waives off depreciation deductions on bike parts in claims
• Engine protect: Add-on covers engine damage from water exposure.
• Consumables cover: Covers oil/filters, nuts/bolts, lubricants etc. during garage repairs
• Personal accident cover: PA add-on provides accident disability/death benefit for bike/scooter owners.

Analyse if your riding habits or bike type need any specific add-on. Opting for relevant riders can prove beneficial.

5. Calculate the correct insured declared value

The Insured Declared Value (IDV) is the sum insured fixed for your bike. It is based on the manufacturer's listed selling price of your bike model and the depreciation rate for each year. A higher IDV means a higher sum insured and a higher premium.

Refer to IRDAI's IDV calculation formula. 

Input the correct parameters to arrive at the optimum IDV:

• Manufacturer's listed selling price of your bike when new
• Age of the bike
• Depreciation rate based on age

An accurate IDV ensures an adequate sum insured. An inflated IDV will result in overpayment of premium.

6. Claim settlement record of insurance provider

While pricing is important, check shortlisted insurers' claim settlement ratio. This indicates how efficiently they process and pay out claims.

• A claim settlement ratio above 90% is good
• Quick TAT for survey and payments
• Cashless garage network

So, analyse claim servicing before buying your preferred two-wheeler policy.

7. Use online premium calculators

Shortlist insurers as per the above parameters - policy types, inclusions, add-on covers, etc. Then, use their online two-wheeler premium calculators to derive quotes.

Input details like:

• Make, model and CC of your bike
• Year of registration
• IDV value
• Voluntary deductible
• NCB years
• Add-on covers

This will provide quotes to compare the premiums of shortlisted policies. Opt for one that offers maximum features relevant to your needs at affordable pricing.

8. Prevent policy lapse or cancellation

• Inform the insurer if changing address or bike ownership
• Pay premiums on time
• Renew policy without a gap to continue NCB
• Make small claims from your pocket where possible

Avoid policy lapses or claims-led cancellations. It can impact future insurance costs.

Conclusion

Opting for a comprehensive two-wheeler insurance policy tailored to your bike and riding needs is key to staying protected on roads. Evaluate aspects like IDV, add-on covers, claim servicing ability and pricing to pick optimal coverage at affordable premiums. Review inclusions periodically to account for new risks. Ultimately, the right bike cover helps you ride stress-free.