A bike or two-wheeler insurance policy is a contract between the bike owner and the insurance company providing protection against liabilities arising from third-party claims and own-damages. While the Motor Vehicle Act in India makes it a statutory obligation for all bike insurance policies to have a third-party cover, you can also purchase a comprehensive policy which provides cover against own damages: the component which provides protection in the case of any accident, natural/man-made disasters or theft. The Bike insurance premium depends on the coverage of the policy.
Difference between comprehensive insurance and liability-only insurance: A third-party liability cover indemnifies the bike owner from any legal claim resulting from the loss or damage caused by the insured’s bike to a third-party or to third-party’s property. To put it simply, the insurance company provides compensation in case of third-party claims. This is a mandatory cover. A comprehensive bike insurance policy, although not mandatory, is highly recommended as it provides extensive coverage to the bike and its owner, in addition to the third-party liability.
Once you have invested your valuable time, efforts and money in selecting and purchasing the dream two-wheeler, you must take adequate steps to protect it. Now you can easily purchase or renew your bike premium online on Finserv MARKETS. Along with affordable bike insurance premium rates, you get a host of benefits, including easy transfer of No claim Bonus (NCB), instant support and quick claim settlement.
Understanding bike insurance premium: Apart from the coverage, bike insurance premium depends on the following factors:
Cubic Capacity of the Engine: According to the cubic capacity of the engine, your bike can be classified in three categories: 0-150CC, 150-350 CC and 350 CC or above. Increase in cubic capacity means increase in bike insurance premium rates.
Insured Declared Value (IDV): This is the specific amount for which your bike is insured. IDV is calculated after considering the selling price and depreciation amount of the bike.
Point of purchase: The purchase zone is important for deciding the premium amount. There are two zones, Zone A and Zone B. Zone A comprises the cities of Bangalore, Chennai, Ahmedabad, Delhi, Kolkata, Pune, Mumbai and Hyderabad. Zone B has the remaining cities in the country. This means that the bike insurance premium for Bangalore and the bike insurance premium for Chennai will remain the same. The bike insurance premium for Zone A cities is higher as compared to Zone B cities.
Understanding premium payment when you change cities: You need to understand that your bike insurance will be valid even if you change cities. But, you need to inform the insurance company about the change in address as the rate of premium would change, when the policy comes up for renewal, depending on the city you have shifted to. If you have shifted from one Zone A city to another, the bike insurance premium will remain the same. For instance, if you have shifted from Bangalore to Chennai, then the premium will remain the same. This is because the bike insurance premium for Chennai and bike insurance premium for Bangalore will be calculated as per the zone location; zone A for both the cities. But if you shifted from a zone a city to a zone B city, then the bike insurance premium would change. For example, if you have shifted from Chennai to Kanpur, then the bike insurance premium would be lower.
How to change the address on your policy after shifting to another city?
Here are the steps required to change your address for your bike insurance policy:
- You have to change your address in the registration certificate after approaching the Regional Transport Office (RTO).
- Inform the insurance company about the change in address by submitting a proof of your changed address along with the updated registration certificate.
- Get an updated policy with the changed address.
Conclusion: A bile insurance premium will be valid even if you change cities, but the bike insurance premium will change as per the zonal location of the city. For instance, bike insurance premium for Chennai and the bike insurance premium for Bangalore will remain the same as both are located in Zone A. But if you shift to a city in Zone B, the premium will be lesser. You can consider a bike insurance policy on Finserv MARKETS, which provides the key benefit of availing additional covers like accident cover for the pillion rider, cover for spare parts/accessories and zero depreciation bike insurance cover.