Key Considerations Regarding Own Damage Insurance for Bike
As a bike owner, the question that may bother you the most is what is the best way to safeguard it. Opting for insurance for a bike is a good way to protect your bike in case of an accident or unexpected incident. This way, you will not be financially drained if your bike is damaged or needs repairs or replacement during such scenarios.
While bike insurance is a topic that is difficult to navigate, educating yourself on this topic is crucial. If you want to invest in an own damage bike insurance plan, you have to consider certain factors before making the investment.
What Does Own Damage Insurance for Bikes Mean?
OD or own damage bike insurance is a standalone policy that provides financial coverage for the damage caused to your insured bike due to accidents, man-made disasters or natural calamities.
This insurance policy covers the expenses incurred to repair your two-wheeler, provided it meets the policy terms. It is crucial to note that OD insurance for a bike is a separate policy that does not fall under third-party insurance and does not provide coverage against damages to third parties in an accident.
5 Considerations to Make Before You Buy Own Damage Bike Insurance </h2>
Eligibility Criteria
Individuals who have already invested in third-party insurance are eligible to apply for a two-wheeler own damage insurance policy. This is because the IRDAI has mandated buying third-party cover for all vehicles.
IDV Assessment
The Insured Declared Value or IDV determines what maximum value you are allowed to claim for your bike if it gets damaged beyond repair or stolen. Assessing IDV is crucial to ensure that you do not overpay when you buy an own damage bike insurance, while getting access to adequate coverage.
Premium Comparison
The key to finding the best own damage bike insurance for your two-wheeler is to compare the premiums different insurers offer. Consider the add-ons, discounts and cost coverage different insurers are offering so that you can select the one that is both affordable and all-encompassing.
The Claim Process
When researching an insurer’s claim settlement process, ensure that you learn about their filing process and turnaround time. Also, consider taking a look at their Claim Settlement Ratio (CSR) before you invest in an own damage insurance two-wheeler policy.
Inclusions and Exclusions
Another crucial consideration is knowing what inclusions and exclusions you should expect in the policy. Common inclusions in bike own damage insurance include coverage for natural disasters like fire, floods, earthquakes, etc., vandalism or theft, explosion or self-ignition and damage due to accidents.
Common exclusions to expect are damages caused to a third party, regular wear and tear and electrical or mechanical breakdown.
Own Damage Bike Insurance – Benefits
- Financial Safety – It protects you against expensive replacement or repair costs for damages due to unforeseen situations.
- Affordability – Premiums on own damage bike insurance are cheap compared to other bundled insurance policies. Moreover, you can make the most of the No-claim Bonus and deductibles to renew your own damage insurance for the bike.
- Add-on Advantage – Insurers offer several add-ons like helmet cover, EMI protection, zero depreciation, etc. to add more security to your two-wheeler.
Conclusion
Opting for an own damage insurance is a prudent way to keep your bike protected from potential financial losses and unforeseen events. Choosing the right policy will keep you worry-free every time you ride your bike.
