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Anti-theft devices for bikes and their impact on insurance premium

Team AckoNov 15, 2022

A bike insurance premium is calculated with the help of many factors. One such factor is adding an anti-theft device on the bike, and getting a discount on premium. Let’s dwell deeper on how an anti-theft device impacts your bike insurance premiums.

Bike Anti-theft Devices Impact on Bike Insurance Premium

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What is an anti theft device for bikes?

An anti theft device for bikes protects it from theft by ringing a loud alarm if anyone attempts to steal it. Some of them are manual anti theft devices for bikes while some are automatic. Usually, it is a compact device that you must attach to your bike to reduce the chances of theft. Adding such a device on your bike is more of a necessity if you live in a theft-prone area or if you need to park the bike on the road open to the public.

What is the impact of installing an anti theft device on bike insurance premium?

When you buy a bike anti-theft device you are essentially decreasing the chances of bike theft. The insurance company will see it as an advantage as with the drop in the possibility of theft. Therefore the possibility of making an insurance claim against bike theft will also decrease. A theft claim is considered as a major claim as the insurer needs to pay approximately the current market value of the bike. Thus, most insurers offer a discount on bike insurance premiums if the bike is secured with an anti-theft device.

Theft cover in bike insurance

A bike insurance policy offers extensive coverage only if you choose the Comprehensive bike insurance policy. Along with bike damage, this type of insurance covers you for bike theft. Note that a bike theft insurance cover is not available with a basic Third-party Bike Insurance Plan as it does not cover the damages that your bike may suffer. Thus, if you are looking for an all-round coverage, you can select the comprehensive policy for your beloved bike.

Benefits of an anti theft device for bikes in India

Here is a list of benefits of installing an anti theft device for your bike in India.

  • Prevention of bike thefts attempts

The first and foremost purpose or benefit of getting an anti-theft device is to prevent your bike from getting stolen. So based on the type of anti-theft device you install, it will freeze the bike engine, sound an alarm, or send an alert on your mobile. All these are just ways to keep the possibility of bike theft at bay or help you take action even if a thief is successful in stealing the bike

  • Discounts on bike insurance premium

Apart from preventing theft, this is one of the primary reasons why people install an anti theft device on their bikes. The insurance company will appreciate the efforts you have made to protect the bike with the security system and might reward you with a discount on the bike insurance premium.

  • Easy claim settlement

In an unfortunate case where your bike gets stolen in spite of having a bike security device, the insurance company will settle the claim without much hassle. This is because you have taken measures to safeguard the bike but it still was subjected to theft. So, apart from a discount on bike insurance premium, your theft claim will be settled faster.

  • Avoid a financial loss

A stolen asset equals financial loss. You lose the money you have invested in buying a bike as it is no longer in your possession. Even if you raise a claim and receive the settlement amount, you will not get the amount you paid to buy the bike in the first place. This is because a lot of factors are involved in calculating the claim amount when it comes to bike theft. For example, depreciation. This is the reduced value of the bike due to usage. 

Say you use the bike for two years before it got stolen. Here two years worth of depreciation will be considered to calculate the claim amount. This is also the amount you set while buying the insurance policy. It is called the Insured Declared Value (IDV) of the bike. In simpler words, you don't get the full value of the bike if it gets stolen.

  • Prevents the hassle you go through after bike theft

Once your bike gets stolen, you need to go through the hassle of filing an FIR and collecting the required documents from the police station to prove theft and make a claim against your two wheeler insurance policy. This entire process can take months to finish. You also need to regularly follow up with the authorities to understand the status of your request. With an anti theft device on the bike the chances of you going through this hassle are reduced exponentially.

Types of two-wheeler anti-theft devices 

If you are looking to get a bike anti-theft device , ensure that you get a device that has approval from the Automotive Research Association of India (ARAI). Not only will it offer optimal performance, but you can claim a discount on the bike insurance premium if you get an ARAI-approved device. Bike anti-theft devices generally come in the following forms.     

  • An immobiliser

This comes in the form of a manual immobiliser that prevents certain parts of the bike from moving. The most common example is the handle lock. Here the handle of your bike won't move if the bike key is not inserted in the lock.

  • A gadget with location tracking

A device that is embedded with GPS or Global Positioning System helps you know the actual location of the bike. While such a device will help you reach a designated location, it will also send an alert to your phone (with the help of a compatible mobile app) in case it suspects theft.

  • Alarms

An anti-theft alarm is a sound-based anti-theft device that sets off if someone tries to steal the bike. So, if you are not present in the vicinity of the bike, the loud sound will at least alert other people and possibly prevent bike theft. Note that the cost of buying this type of bike anti-theft device is usually lower as compared to others that come with advanced technology.

  • Engine switch

This is another type of an anti-theft device used to protect a vehicle. After you get it installed, all you need to do is turn the switch to the off position and the engine won't start until it is flipped back. This device is also called a Kill Switch and is most popular in vehicles with a cabin space. For example, cars or heavy vehicles.

List of approved anti-theft devices

Following is the list of ARAI-approved anti theft devices for bikes.

  1. VTS-01-021 & VTS-01-022 from KPIT Technologies Ltd, Pune

  2. ACONITS140 by Accolade Electronics Pvt. Ltd, Pune

  3. TCU by Pricol Limited

  4. VTS from Wabco Inida Limited

  5. ITS System TLG-1000 by Autocop India Pvt. Ltd

Here is the full list of ARAI approved anti-theft devices for your reference.

Tips to prevent bike thefts

Here are a few tips that will help you prevent the occurrence of a bike theft.

  1. Cover your bike with a thick bike cover.

  2. Park the bike at a secure location.

  3. Install an anti theft device on the bike.

  4. Get a CCTV camera installed in the parking space.

  5. Renew your bike insurance premium regularly for a financial backup in case of theft.    

Nowadays, advanced gadgets allow you to track the bike via GPS in case the bike does get stolen. This security system will come in any form rangings from an alarm, a lock, a trigger against theft, etc. 

Usually, cars come equipped with an alarm system for enhanced protection. However, you must separately attach an anti theft device to your bike since only a few manufacturers create bikes with such devices. Once you get a bike anti-theft device installed, you must contact your bike insurance company to inform them of the enhanced security.

Also, read: Two-wheeler Anti-theft Tips

Frequently asked questions

Here are a few questions about bike theft and bike insurance. Please feel free to get in touch through email ([email protected]) in case of more queries.

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Does my bike insurance policy cover theft?

This depends upon the type of bike insurance policy you have opted for. Usually, theft is covered under a Comprehensive Two wheeler Insurance Policy.

How to raise a claim with ACKO for bike theft?

Log in to your ACKO profile and click on your bike insurance policy. Then go to claims and attach the required documents. We will get in touch with you to understand more details about the claim.

Will I get the ex-showroom cost of my bike if it gets stolen?

If you do not have a specialised add-on with a Comprehensive Two wheeler Insurance Policy for this purpose, then you won't get the full value of the bike in case of theft. This is because depreciation is considered and will be deducted from the claim amount.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.

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