A bike insurance plan can help cushion the financial burdens associated with damages sustained by your two-wheeler in the event of an accident or calamity. Motor Vehicles Act of 1988 mandates that all bikes in India must have insurance from at least one standard third-party bike insurance plan. While you can prefer a comprehensive plan due to its extended scope of coverage, a basic third-party plan may be the cheaper choice.
It is important to note that while a third-party insurance policy provides constricted protection for your two-wheeler, you can always enhance this coverage with adequate add-on covers. However, this improved coverage does come against a premium hike.
Why opt for add-on covers?
Investing in add-on covers is a good option for those looking to buff up the coverage scope of their comprehensive or third-party bike insurance plans. When you opt for add-on covers, you stand to reap the following benefits:
Types of add-on covers for your third-party bike insurance plan
You can secure yourself from financial liabilities by adding the following add-on covers to your bike insurance policy.
1. Zero-depreciation cover
You are liable to bear the charges for repairing and replacing your bike’s damaged parts in case of an accident. The zero-depreciation rider ensures that your insurance provider comprehensively covers the payments for such repairs and replacements. In other words, adding this rider to your bike insurance plan will ensure that you can claim the entire expense amount without deducting the natural depreciation value of your vehicle’s parts from the claimed amount.
2. Return to invoice cover
In the event of your two-wheeler’s total loss or damage, this cover ensures that you receive the invoice price of the vehicle rather than the stated IDV in your third-party bike insurance plan. The calculation for the IDV of your bike is the current market price of the model minus the depreciation endured by the vehicle. It tends to be lower than the invoice price, including road taxes and vehicle registration charges.
3. Engine protection cover
This cover can be crucial for those living in areas with seasonal water logging issues. Similarly, oil leakage and natural calamities may damage your bike’s engine. Since repairing your bike’s engine or constituent parts burns a hole in your pocket, opting for this cover becomes prudent. You remain financially protected against all potential engine repair and replacement expenses if you add this rider to your third-party bike insurance plan.
4. Consumable’s cover
No two-wheeler third-party insurance policy covers the cost of consumables like nuts and bolts, lubricants, engine oil, oil filter, etc. Adding this optional rider to your bike insurance policy ensures that these additional expenses remain covered.
5. NCB protection cover
Insurance companies reward their clients for filing zero claims with sizable NCB discounts on renewal premiums during a policy year. However, registering a single claim against your third-party bike insurance plan can disqualify you from availing of such plans. With the NCB protection cover, you can ensure that your no claim bonus benefits remain unaffected, even if you’ve raised a few claims during the policy year.
6. Roadside assistance cover
Nothing is more perplexing than being stranded in the middle of the road due to a glitch in your bike’s operational interface. However, if you have added this cover to your bike insurance plan, you can remain assured that immediate roadside assistance is always a phone call away. This add-on covers any roadside assistance you may require, from on-site repairs to fuel delivery and instant towing benefits.
7. Passenger assistance cover
This rider extends the protective coverage of your bike insurance plan to your co-passenger or pillion. If an accident results in the death or sustained disability of the pillion, this optional rider covers the compensation cost.
8. Daily allowance cover
When your two-wheeler is out for repairs or someone steals it, a daily allowance cover comes into play. Under the coverage umbrella of this rider, you will be eligible for a daily allowance from your insurance provider for such incidents.
9. Key loss cover
If you happen to lose the keys to your two-wheeler, this add-on cover will cushion you against the costs of purchasing a new one.
You must remember to carefully evaluate your needs before picking add-on covers for your two-wheeler insurance policy since each additional rider comes at a specific cost. The bike insurance plans and add-on costs on the Bajaj Finance Limited portal can help you pick the suitable and optimised insurance coverage for your two-wheeler.
Furthermore, under the Motor Vehicle Act of 1988, a third-party bike insurance plan is mandatory in India. Although these plans are cheaper than comprehensive insurance policies, their coverage scope is minimal. However, policyholders can extend the protection of these plans by opting for add-on covers. Covers like zero-depreciation, engine protection, passenger assistance, key loss, roadside assistance, etc., prove to be quite formidable in enhancing the effectiveness of your bike insurance plan.
