Checklist Before Buying Bike Insurance Online in India Your Essential Guide to Making the Right Decision in 2025
Introduction to Online Bike Insurance Buying bike insurance online in India offers speed and convenience, but a hasty purchase without proper verification can lead to future complications. This essential checklist guides you through the crucial details to verify before committing to any two-wheeler policy. Understanding these aspects ensures you make an informed decision, securing adequate coverage and avoiding unexpected costs down the line.
Quick & Convenient Online insurance offers a streamlined purchasing process.
Avoid Future Costs Proper verification prevents unexpected expenses later.
Informed Decision Understand key details for adequate coverage.
Understand the Types of Bike Insurance Before purchasing, it is crucial to differentiate between the available types of bike insurance. Third-Party Insurance is legally mandatory and covers damage to others, while Comprehensive Insurance offers broader protection, including your own bike's damage, though it is optional. Knowing these distinctions ensures you select the most suitable plan for your needs and legal requirements. Type
What It Covers
Legal Status
Third-Party Insurance
Damage to others (person/property)
Mandatory under Motor Vehicles Act
Comprehensive Insurance
Third-party + own bike damage
Optional but highly recommended
Check the IDV (Insured Declared Value) The Insured Declared Value (IDV) represents the maximum claim payout for your bike in cases of theft or irreparable damage. Opting for a very low IDV to reduce premiums will significantly decrease your coverage. It is advisable to choose a balanced IDV that accurately reflects your bike's current market value, ensuring adequate compensation if a total loss occurs.
IDV Defined
Avoid Low IDV
Balanced Choice
Maximum claim for theft or irreparable
Reduces premium but also coverage.
Select IDV based on market value.
damage.
Compare Premiums & Benefits When buying bike insurance, it's essential to compare more than just the premium price. Utilise insurance aggregator websites to evaluate various factors such as add-ons, the insurer's claim settlement ratio, and the availability of network garages. The lowest premium doesn't always offer the best value; a comprehensive comparison ensures you find a policy that truly meets your needs and provides peace of mind.
Premium Costs
Add-ons
Claim Settlement Ratio
Network Garages
Evaluate the price of different
Check available extra covers.
Assess insurer's reliability.
Verify cashless repair
policies.
availability.
Look for Key Add-ons For comprehensive bike insurance, specific add-ons can significantly enhance your coverage and provide greater peace of mind. Zero Depreciation Cover ensures full claim payouts without depreciation deductions, while Engine Protection Cover safeguards against water damage or mechanical breakdowns. Roadside Assistance offers 24/7 help in emergencies. Although these riders increase the premium, their benefits often outweigh the additional cost.
Zero Depreciation Cover Full claim without depreciation deductions.
Engine Protection Cover For water damage or breakdowns.
Roadside Assistance 24/7 help in case of breakdowns.
Check Claim Settlement Ratio (CSR) The Claim Settlement Ratio (CSR) indicates the percentage of claims an insurer successfully settles. A high CSR, ideally 90% or above, signifies a reliable insurer. Prioritise companies with strong CSRs to ensure your claims are processed efficiently. It is wise to avoid unknown providers or those with poor ratings, as a low CSR can lead to significant delays or denials when you need support the most.
90%
10%
Recommended CSR
Avoid Low CSR
Look for insurers with a claim settlement
Insurers with low CSRs may indicate
ratio of 90% or higher for reliability.
potential claim processing issues.
Confirm Network Garages Availability Cashless repair services are exclusively available at an insurer's network garages. Before purchasing a policy, verify the list of network garages in your city and any areas you frequently travel to. A lack of accessible network garages means you will have to pay upfront for repairs and then seek reimbursement, which can lead to delays and inconvenience. Ensure convenience by checking this crucial detail.
Locate Garages Check network garages in your city and travel areas.
Cashless Repair Only possible at network garages.
Avoid Delays No network garage means upfront payment and reimbursement delays.
Review Policy Terms & Exclusions Thoroughly reviewing policy terms and exclusions is paramount to understanding your coverage. Familiarise yourself with what is not covered, such as incidents involving drunk driving or illegal racing. Also, pay attention to voluntary deductibles, co-payment clauses, and depreciation terms. Always read the complete policy wording or request a summary to avoid any surprises during a claim, ensuring full transparency.
Exclusions
1
2
3
What is not covered (e.g., drunk driving, illegal racing).
Deductibles Voluntary deductibles and co-payment clauses.
Depreciation Understand depreciation terms.
Verify Policy Period & Renewal Terms Most bike insurance policies are either annual or long-term, spanning three to five years. It is crucial to verify the policy period and understand the renewal terms. Check for auto-renewal options, the grace period for renewal, and how No Claim Bonus (NCB) retention works, especially in long-term plans. These details ensure continuous coverage and help you manage your policy effectively without lapses.
Policy Duration
1
Most policies are annual or long-term (335 years).
Auto-Renewal
2
Check for automatic renewal options.
Grace Period
3
Understand the grace period for renewal.
4
NCB Retention Verify NCB retention in long-term plans.
