Everything You Need To Know About Own-Damage Bike Insurance

Many bike owners opt for a comprehensive plan or a combination of third-party and standalone own-damage cover from providers like ACKO General Insurance for full protection.

What is Covered Under Own-Damage Bike Insurance?

Own-damage bike insurance is designed to protect your two-wheeler from a wide range of risks and unforeseen events. Here is what is typically covered:

• Accidental Damage: Covers repair costs if your bike is damaged in a road accident.

• Fire and Explosion: Provides financial protection if your vehicle is damaged due to fire or explosions.

• Natural Calamities: Covers damage caused by floods, earthquakes, storms, cyclones and other natural disasters.

• Theft or Burglary: Offers compensation if your bike is stolen or irrecoverably lost.

• Vandalism or Riots: Covers damages resulting from civil disturbances, riots or malicious acts.

• Transit Damage: Protects against loss or damage during transportation by rail, road, inland waterways, lift or elevator.

What is Not Covered Under Own-Damage Bike Insurance? 

While own-damage bike insurance offers wide protection, there are specific situations and damages that are excluded from coverage. Here are the common exclusions

• Normal Wear and Tear: Damages due to ageing, depreciation or regular use are not covered.

• Mechanical or Electrical Failures: Breakdown of the bike’s internal components due to faults is excluded.

• Driving Without a Valid Licence: Claims are rejected if the rider does not hold a valid two-wheeler driving licence.

• Riding Under the Influence: Any damage caused while riding under the influence of alcohol or drugs is not covered.

• Illegal Use of the Vehicle: Damages resulting from participation in illegal activities or racing are excluded.

• Consequential Losses: Indirect losses (like income loss due to bike unavailability) are not covered.

• Damage Outside Geographical Limits: If the damage occurs outside India or beyond the policy’s coverage area, claims may not be accepted.

Popular Add-ons for Own-Damage Bike Insurance

Add-ons are optional covers that supplement your basic own-damage bike insurance. These are some of the most common ones that are provided by insurers:

• Zero Depreciation Cover: Provides complete settlement of the claim without considering the depreciation of the parts that are replaced.

• Engine Protection Cover: Covers damage to the engine caused by ingress of water or oil leakage, which is normally not covered in standard plans.

• Roadside Assistance Cover: Covers emergency assistance such as towing, jump starting of battery or fuel delivery in the event that your bike breaks down.

• Return to Invoice Cover: Covers the initial value of your bike in case of total loss or theft, as opposed to the current market value.

• Consumables Cover: Covers the expense of items such as nuts, bolts, lubricants and brake oil, which are not normally covered in general claims.

• No Claim Bonus (NCB) Protection: Protects your built up NCB even when a claim has been made.

Factors Affecting Own-Damage Bike Insurance Premiums

The premium for your own-damage bike insurance is influenced by multiple factors. Understanding these can help you make informed choices and potentially lower your costs.

• Bike’s Age and Model: Newer and high-end bikes usually attract higher premiums due to higher repair or replacement costs.

• Insured Declared Value (IDV): The current market value of your bike; a higher IDV leads to a higher premium.

• Location of Registration: Bikes registered in metropolitan or high-traffic zones may have higher premiums due to greater risk exposure.

• Add-on Covers Selected: Opting for multiple add-ons like zero depreciation or engine protection increases the overall premium.

• Previous Claims History: Frequent claims can lead to a higher premium or loss of No Claim Bonus (NCB).

• Security Features Installed: Anti-theft devices approved by ARAI can reduce the premium as they lower the risk of theft.

• Voluntary Deductibles: Choosing a higher deductible (the amount you pay during a claim) can help reduce your premium.

Conclusion

Own-damage bike insurance is essential for safeguarding your two-wheeler against unexpected events like accidents, theft and natural calamities. While third-party insurance is legally required, own-damage coverage gives you financial protection for your own losses, offering peace of mind and long-term savings. Leading insurers like ACKO General Insurance provide flexible, affordable own-damage policies that can be customised with useful add-ons. Whether you are a daily commuter or an occasional rider, investing in the right cover ensures you are prepared for whatever the road brings.