Bike insurance is important because of the compulsion to safeguard yourself from loss when an accident or damage occurs. In this regard, it is important to understand the difference between types of bike insurance policies, such as comprehensive and third-party insurance, to decide on the right choice.
So, let’s explore how you can compare bike insurance policies easily.
Comparing Comprehensive and Third-Party Bike Insurance
Here is a comprehensive analysis of comprehensive and third-party bike insurance to help you evaluate their key features:
What is Comprehensive Bike Insurance?
Comprehensive bike insurance gives you broad protection for your bike. It safeguards you against third-party liabilities and covers any damage to your bike resulting from accidents, natural disasters, theft, or other unfortunate events.
Advantages of Comprehensive Bike Insurance
● Damage to Your Bike: Comprehensive insurance covers the damage to your vehicle.
● Third-party Liabilities: You get compensation for injury or damage to the third party.
● Theft Covers: If the vehicle is stolen, the comprehensive insurance policy fully covers its value.
● Natural Disasters and Man-Made Calamities: It covers damage due to flooding, earthquakes, riots, and terrorism.
● Personal Accident Cover: The plan offers comprehensive coverage for bike riders in case they suffer injuries or even death in an accident.
Disadvantages of Comprehensive Bike Insurance
● Higher premiums compared to third-party insurance
● Not all riders can afford it, especially those who own older bikes
What is Third-Party Bike Insurance?
Third-party bike insurance is the minimum coverage level, which is legally required. This insurance covers liabilities arising from injuries or damages caused to third parties through your bike but does not cover damages to your bike.
Advantages of Third-Party Bike Insurance
● Third-Party Liability Coverage: This addresses injuries or fatalities to third parties resulting from an accident that your vehicle caused.
● Property Damage: It covers the costs for any damage your bike may have caused to someone else’s property.
● Accidental Death Coverage: Coverage for the accidental death of the owner or driver of the insured vehicle is offered.
Disadvantages of Third-Party Bike Insurance
● The damage to your bike would not be insured
● Theft or man-made disasters would not be insured
● The insurance will not cover the rider’s accident
Factors to Consider When Comparing Bike Insurance Online
Now that you know the basic difference between comprehensive and third-party bike insurance, the next step would be to compare the bike insurance online that best suits your requirements. Here’s how you can compare them:
1. Coverage Offered
The most crucial factor to consider is the extent of coverage the insurance policy offers.
● For Comprehensive Coverage: Check if the policy covers your damages and third-party liabilities. Also, see if it includes protection against theft, natural disasters, and personal injuries.
● For Third-Party Coverage, Check to See if the policy includes third-party injury and death protection along with appropriate property damage coverages.
A comprehensive policy typically offers broader coverage compared to just third-party insurance. However, if you are on a very tight budget, only third-party insurance might be the way to go.
2. Premium Cost
Premiums vary considerably based on the type of cover, bike model, and insurance company.
● Comprehensive Bike Insurance Premiums: These are usually higher since the scope of cover is much broader.
● Third-Party Bike Insurance Premiums: They are inexpensive as the cover is minimal.
However, cost should not be the sole basis of selection. Compare how much cover you are getting against the premium so that you pay value for money.
3. Add-ons and Optional Coverage
There are a lot of insurance companies that offer add-on coverage. These are bought in addition to the policy to avail extra coverage.
Some of the popular add-ons are:
● Zero Depreciation Cover: It ensures that you receive the complete worth of your bike at the time of your claim, with no depreciation.
● Engine Protection Cover: It provides cover when damages are related to engines.
● Roadside Assistance: It offers assistance when the bike breaks down or is involved in an accident.
● Personal Accident Cover: This offers a rider extra cover if/when he gets injured and dies.
These add-ons have a charge attached but will significantly enhance your policy’s coverage. Compare policies to see which offer the best add-ons that suit your requirements.
4. Claim Settlement Process
When choosing an insurance policy, a key factor is the ease of filing and settling claims. Opt for a policy with a strong claim settlement ratio, as this indicates its dependability and the efficiency of its claims handling.
5. Exclusions in the Policy
Beware of what is excluded from your insurance policy. The most common are:
● Damage caused by riding a bike while under the influence of liquor or drugs
● Damage from general wear and tear or mechanical failure
● Commercial use of the bike unless your policy has specified an exemption
6. Customer Reviews and Reputation
Consider online reviews and feedback from existing customers before finding a reliable and responsive insurance provider. This will help you get the best customer service and claims settlement.
7. No Claim Bonus (NCB)
Most insurers have a no-claim bonus (NCB) given as a reward for no-claim years. The bonus brings about a discount on the premium at the time of policy renewal.
When comparing bike insurance policies, you should understand the pros and cons of comprehensive and third-party insurance. Comprehensive insurance offers a broader scope of protection, while third-party insurance solely addresses liabilities to others.
Compare coverage, premiums, add-ons, claim settlement process, exclusions, and customer reviews to find the best policy suited for your needs and make sure your bike is fully protected.
Disclaimer:
CBD:
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The Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) outlaws the recreational use of cannabis products in India. CBD oil, manufactured under a license issued by the Drugs and Cosmetics Act, 1940, can be legally used in India for medicinal purposes only with a prescription, subject to specific conditions. Kindly refer to the legalities here.
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Gambling:
As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman, and Sikkim, prohibit gambling. Land-based casinos are legalized in Goa and Daman under the Goa, Daman and Diu Public Gambling Act 1976. In Sikkim, land-based casinos, online gambling, and e-gaming (games of chance) are legalized under the Sikkim Online Gaming (Regulation) Rules 2009. Only some Indian states have legalized online/regular lotteries, subject to state laws. Refer to the legalities here. Horse racing and betting on horse racing, including online betting, is permitted only in licensed premises in select states. Refer to the 1996 Supreme Court judgment for more information.
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