Third-party Cover

Following are the features of a third-party bike insurance component:

• This covers you for any loss or damage caused to another person, vehicle or property by your bike during an accident.
• It is mandatory for every vehicle rider to have a Third-party bike insurance cover in India.
• The third-party premium rates depend on the engine capacity of your vehicle.
• These rates are fixed and revised periodically by the IRDAI.

Insured Declared Value

Insured Declared Value(IDV) is the maximum amount that you can claim in the case of any loss or damage. Over a period of time, the value of your vehicle depreciates and thus, the IDV reduces too. The higher the Insured Declared Value, the higher the premium of your bike insurance and vice versa. However, it is better to get IDV which is near the cost of the market value of your bike.

Own Damage Cover

Following are the features of an own-damage cover, note that it does not cover third-party components:

• This covers you for any kind of loss or damage to your vehicle due to accidents, fire, theft, natural calamities, etc.
• Although such a cover is beneficial, it is not mandatory in India like a Third-party cover.
• The premium rate of the own-damage cover is calculated as a percentage of the Insured Declared Value (IDV) of your bike.
• These rates are calculated by your insurance company.
• This cover is independent of Third-party liabilities and is included in a Comprehensive Two-wheeler Insurance Policy.

Personal Accident Cover for Owner-driver

A personal accident cover of Rs. 15 lakhs for owner-driver is included in every bike insurance policy.

Following are its benefits:

• Compensation for Disability: In case of partial or total disability of the owner-driver, he/she will be given a compensation.
• Accidental Death Benefit: Compensation shall be provided to the owner-driver’s family in case of death due to a bike accident.

Discounts

• If you buy safety features like certified anti-theft devices you can get discounts on the premium.
• You might also get a discount for being a member of the Automobile Association of India.

Deductibles

• Committing to pay voluntary deductibles reduces your premium.
• This is the portion of the bill you pay from your own pocket at the time of making claims. A certain amount is also charged as compulsory deductible at the time of claims.

No Claim Bonus (NCB)

• Your claim history also affects your premium amount
• If you do not make any claims in a year, you get the best discount on own-damage premium at the time of renewal.This discount is known as a No Claim Bonus. On renewal, it can get you a discount of up to 50% on the premium amount for five consecutive claim-free years. However, if you make even a single claim in one policy period, your accumulated NCB comes down to the lowest value i.e. zero.
• The following table will give you a better understanding of the No Claim Bonus:

No. Of Years

• One claim-free year = discount 20%
• Two consecutive claim-free years = discount 25%
• Three consecutive claim-free years = discount 35%
• Four consecutive claim-free years = discount 40%
• Fiveconsecutive claim-free years = discount 50%

Add-on Covers

Add-ons are the best options to enhance your bike insurance policy.

• Add-ons provide more value as compared to a standard bike insurance policy. For extra add-on covers, you have to pay more premium. They increase the final payment amount of your bike insurance policy
• Zero-depreciation is a common add-on, which compensates you for the entire claim regardless of the depreciation of your bike.
• Other add-ons include return to invoice, pillion rider, roadside assistance etc.