How Bike Modification Affects Your Two Wheeler Insurance Premium

Some people like to keep things simple while some like to jazz them up. If you, as a motorcycle owner, belong to the second type, then you might be interested in modifying your precious bike so that it looks even cooler.

How Bike Modification Affects Your Two Wheeler Insurance Premium - Acko

Nowadays, it has become easier (at least in cities) to modify your bike. From specialists to local garages, you can choose whom to handover your bike for a revamp. However, keep in mind that modifying your bike also has an impact on your two-wheeler insurance premium.

Generally, there are three types of bike modifications. Have a look at the table given below to know how each type of modification can impact your two-wheeler insurance premium.

Bike Modification and its Impact on Insurance Premium

Type of Modification Meaning Example Impact on Insurance Premium
Performance Any type of modification that leads to an increase in the bike’s performance falls under this category. Modifications made to increase the speed of the bike. Usually, such modifications are perceived as ‘risky’ by insurance companies. Thus, the premium will increase due to such modifications.
Aesthetic Changes made to the two-wheeler that enhances its looks are termed as aesthetic modifications. Adding fiber parts to bulk-up the bike (to give it a sporty look) If you want to get these parts insured, you will have to pay extra premium (accessories cover) as they are not factory-fitted parts.
Security Devices installed to keep the bike safe from theft are termed as anti-theft or security devices. Devices (locks, alarms, etc.) certified by the Automotive Research Association of India (ARAI). Insurance companies consider such devices as a proactive measure undertaken by the policyholder to negate bike theft. Thus, they offer a discount on insurance premium based on installation of certified anti-theft devices.

Bike Insurance Online

If you have purchased bike insurance online, chances are the insurance company might not have inspected your bike. In bike insurance online, you visit the preferred insurer’s website, fill in details and purchase a plan. Usually, there is no option of declaring modifications online.

Online insurers have a two wheeler insurance premium calculator on their website. However, a two wheeler insurance premium calculator might not be helpful when it comes to gauging the premium charged for modifications. For that, you will have to communicate with your insurance company. You can have a dialogue with them regarding the impact of a specific kind of bike modification and the process followed regarding insurance. A simple call should suffice. The insurance executive should guide you regarding the due process.

Here, the onus is on you to convey information related to bike modifications to the insurers as it will have a direct impact on the bike’s Insured Declared Value (IDV). IDV is the base for calculating comprehensive bike insurance premium.

In case of online 2 wheeler insurance, you have to calculate the IDV yourself. Unlike the online 2 wheeler insurance method, an agent or an insurance executive might calculate the IDV for you in the offline method. Irrespective, modifications need to be conveyed upfront to avoid claim-settlement issues in the future.

Inform the Insurer

You should inform your insurance company about the modifications. Do not wait to inform the insurance company till/during the renewal period. Do it immediately. It is in your favor to intimate the insurance company if you have installed anti-theft devices as it might lead to lower insurance premium.

If you feel that you can save on insurance premium by not informing the insurer about performance and aesthetic modifications, you are mistaken. In fact, not informing can be counterproductive. Insurance company can reject a claim if they were not informed about the modifications. Thus, it is a good practice to keep your insurance company informed regarding bike modifications.

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