What is Motorcycle Insurance? If I am not wrong then this is probably the first question that must have arisen in your mind after seeing the price break up of your dream bike.
But don’t worry, you have come to the right place now. I will tell you everything that you need to know about motorcycle insurance. From how it works and its different types to what affects its rates, I will share all the things with you.
So read the article till the end!
Table of Contents
What Is Motorcycle Insurance?
Motorcycle insurance is a kind of insurance that provides coverage for your motorcycle in case of accident, theft, or natural calamity.
Prices of motorcycles are increasing day by day. Many people save for years to buy their dream bike. And some take two-wheeler loans to buy one. Whether you should finance a motorcycle or not is a topic of another discussion.
But what if you take the motorcycle out of the showroom and meet with an accident? Or if not the same day, then after a month or a year? You may follow all the traffic rules but as you know the road is full of idiots.
Will you be able to buy the same motorcycle again? Or bear the cost of repairing it, which sometimes can be more expensive than the motorcycle itself.
The answer will be no for most people. This is where motorcycle Insurance comes into place. It provides coverage for your bike so that you don’t have to bear the financial burden in case of any mishap.
How Does Motorcycle Insurance Work?
Now that you know what motorcycle insurance is. Let me tell you how it works.
Motorcycle insurance works exactly like other insurance policies. Firstly, you select the type of insurance and add-ons that you want. And then you pay the premium accordingly.
God forbid if you meet with an accident, or someone stole your bike, or your bike gets damaged due to natural calamity then you can file for the insurance claim.
The insurance claim is generally filed from the authorized service center of the bike. Once the claim is filed then an inspection officer checks your bike for damages.
After assessing your bike, the officer then decides whether you can claim the insurance or not. Once the claim is approved then the payment is done directly to the service center. Which in turn then repairs your bike and hands it back to you.
In some cases, it might happen that you will have to pay for the repair upfront. And then the insurance company reimburses your expenses.
Is Motorcycle Insurance Mandatory?
Yes, motorcycle insurance is mandatory and it is required by the law. You will be fined if you are found riding a bike without valid insurance coverage.
Now that you know how motorcycle insurance works, you must want to know whether it is mandatory or not, right? Because it considerably increases the on-road price of your bike. Not only this but you will have to pay for it every year. So is it mandatory?
Yes, according to the Motor Vehicles Act Of India, motorcycle insurance is mandatory. And if you want to ride the bike on the road then you need to have valid insurance for it.
So whether you are buying a new bike or already own a bike, you will have to purchase bike insurance for it.
Having said that, there are different types of motorcycle insurance. And not all of them are mandatory. Therefore, you can opt for the cheapest one if you want to save some money.
Types Of Motorcycle Insurance In India
There are 3 types of motorcycle insurance policies available in India:
1. Own Damage motorcycle insurance
2. Third-Party motorcycle insurance
3. Comprehensive motorcycle insurance
Let me tell you about them in brief one by one.
1. Own Damage Motorcycle Insurance
This type of motorcycle insurance only covers the expenses to repair your own damages. All the damage that is done to your motorcycle and to you (up to a certain extent) is covered under this policy.
This type of motorcycle insurance is not mandatory and it’s your choice whether you want to take it or not. And you can only take one if you already have third-party bike insurance.
For eg. Suppose, you met with an accident and got injured. The cost of repairing your motorcycle comes out to ₹10,000 and your treatment cost comes out to be ₹20,000. If you have taken the own damage bike insurance then this cost will be borne by the insurance companies. And you will not have to pay from your pocket.
Note: This is just an example, there are various other clauses in a motorcycle insurance policy. It might happen that you have to pay some amount and the insurance company may cover the cost to a certain extent only.
2) Third-Party Motorcycle Insurance
Third party motorcycle insurance only covers the damage done to a third party. It does not cover any damage to your motorcycle or to yourself.
This type of motorcycle insurance is mandatory according to the Motor Vehicles Act Of India. And you have to have one if you want to ride your bike on the Indian road.
For eg. In an accident, there are generally three parties involved. Two of them are the insurance company and yourself. And the third party is the one that you are involved in an accident with, i.e. the one that you hit. Third-party bike insurance will only cover the damages that the third party has sustained. It will not bear any damage that your own motorcycle has sustained.
3) Comprehensive Motorcycle Insurance
Comprehensive motorcycle insurance is the combination of the own damage and third-party bike insurance.
In case of an accident, it covers damage to your motorcycle as well as damage to the third party.
This type of bike insurance is again not mandatory to take and it’s your choice to take them.
Is Motorcycle Insurance Cheaper?
Yes, motorcycle insurance is generally very cheaper to buy.
Since the cost of purchasing a motorcycle is low as compared to a car. Therefore the premium of bike insurance is generally very low as compared to the premium of car insurance.
Having said that, if the cost of a car and bike are the same then the whole story changes. You will see that the cost of bike insurance will be greater than the car insurance.
But the question is why it is so?
Why Is Motorcycle Insurance So Expensive?
Motorcycle insurance is expensive because of the involvement of greater risk.
According to JD Power, a motorcyclist is 30 times more likely to have fatal injuries as compared to a person driving a car.
Also, the chances of an accident on a motorcycle are generally higher as compared to a car.
Because of these reasons, the cost of motorcycle insurance is generally higher than car insurance.
What Affects Motorcycle Insurance Rates?
Now that you know almost everything about the motorcycle insurance, let us see what affects its rates.
The cost of motorcycle insurance depends on the following factors:
- Type Of Motorcycle: The type of bike that you own affects the rate of insurance.
- Cost Of Motorcycle: The higher the cost of your bike, the higher will be its insurance cost.
- Add Ons: The add ons increase the overall cost of motorcycle insurance. The more add ons you take the more cost you will have to pay.
- Modification: The modification that you have done on your bikw also affects its insurance cost. Because you will have to take insurance for the added accessories as well.
- Geographical Location: The city or state where you stay also affects the rate of motorcycle insurance. For eg. you will have to pay a higher premium if you stay in Delhi, Mumbai, etc.
- Type Of Motorcycle Insurance: The type of bike insurance that you take also affects the insurance premium. For comprehensive insurance, you will have to pay the highest premium.
- Riding Skills: The riding skills of a rider also affect the cost of the insurance. An unskilled rider is more likely to meet with an accident therefore he will have to pay higher premiums.
So all these and some more factors decide the premium that you will have to pay for motorcycle insurance.
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FAQs
What Is The Meaning Of Motorcycle Insurance?
Motorcycle insurance is a type of insurance that provides coverage to your bike in case of an accident or crash.
Is Motorcycle Insurance Required In India?
Yes, motorcycle insurance is mandatory in India.
Can We Buy A Bike Without Insurance?
No, you cannot buy a bike without insurance. However, you can choose to not take insurance from the showroom.
Can We Ride Bike Without Insurance?
No, you cannot ride a bike without insurance. Motorcycle insurance is compulsory in India.
What Is The Penalty For Driving Bike Without Insurance In India?
The penalty for riding a bike without insurance in India is ₹2000 or and 3 months in jail, according to the Motor Vehicles Act.
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