5-Year Bike Insurance Price
When you purchase a new two-wheeler, you must have a third-party insurance policy before you can start riding it on the road. While the cost of other types of insurance may vary depending on the insurance providers, in India, IRDAI sets third-party insurance premiums.
In this article, we will look at the different types of bike insurance available and the price of third-party insurance.
What is the Price of 5-Year Bike Insurance?
Third-party bike insurance premiums are set by IRDAI according to the engine capacity of your vehicle. The table below illustrates the price of 5-year bike insurance.
|
Bike Engine Capacity |
5-Year Bike Insurance Price |
|
Not exceeding 75 cc |
Rs.2,901 |
|
Exceeding 75 cc but not more than 150 cc |
Rs.3,851 |
|
Exceeding 150 cc but not more than 350 cc |
Rs.7,365 |
|
Exceeding 350 cc |
Rs.15,117 |
What is Bike Insurance?
Bike insurance is a type of insurance designed to financially protect a rider in case of unfortunate incidents such as accidents, theft, natural disasters, etc. Having third-party insurance will protect you from any liabilities toward third-party losses in an accident.
For example, imagine your bike colliding with another vehicle. In this case, your insurance provider will cover the damages caused to their vehicle. If the driver of the other vehicle gets injured, the hospital bills will also be taken care of by your insurance.
Third-party insurance makes sure that you do not sustain significant financial losses and the third party gets compensated if an accident occurs.
Why Purchase 5-Year Bike Insurance?
In order to make sure that the maximum number of vehicles on the road are insured the IRDAI has made it mandatory for all new two-wheelers to be issued a 5-year third-party insurance policy.
Let us look at the benefits of having a 5-year bike insurance policy:
-
Convenience
You will not have to go through the hassle of renewing your insurance every year.
-
You will save on premium
The IRDAI revises the premium for third-party insurance every year. If you purchase a 5-year policy, this revision will not affect you.
-
Compliance with legal requirements
Driving without third-party insurance can attract legal action against you. A 5-year bike insurance plan will take care of legal compliance for five years.
What are the Types of Bike Insurance?
Third-party bike insurance will cover the costs of third-party liabilities. But it will not cover the damages caused to your vehicle.
For protection against damages to your own vehicle, you must have an Own Damage insurance policy in addition to the third-party insurance. Or you can take a comprehensive insurance policy, which is like a combination of third-party and Own Damage insurance.
Let us understand the different types of bike insurance policies:
|
Third-party Insurance |
Own damage Insurance |
Comprehensive Insurance |
|
Third-party bike insurance is required by law. |
Although not required by law, it is advised. |
Not mandatory by law, but recommended. |
|
It protects against damages or injuries caused to other people. |
Covers harm done to your bike as a result of mishaps, theft, and disasters. |
Covers damage to your bike as well as third-party liabilities. |
|
Your bike's damages are not covered by third-party insurance. |
Liabilities to third parties are not covered by own damage insurance. |
Complete protection is offered by comprehensive insurance. |
|
Low premium costs set by IRDAI. |
Moderate premium costs. |
Although premiums are expensive, they provide more coverage. |
Conclusion
The cost of third-party bike insurance is designed to be affordable to the common man. While only third-party bike insurance is legally mandated, it is also important to be prepared for damages that may happen to your own vehicle.
This is why having own damage or comprehensive insurance policy is highly recommended, especially if you just purchased a new vehicle.
You can compare insurance policies and get the best quotes suitable for your vehicle with Moneyview. Use the Moneyview app or website to get up to 85% lower premiums.
5 Year Bike Insurance Related FAQ's
The depreciation cost of a car minus its ex-showroom price gives the vehicle's IDV. You can use the Insured's Declared Value (IDV) Calculator for a more accurate estimate.
As required by law, you have to get 5-year third-party insurance for a new bike. You can purchase a one-year own damage insurance policy on top.
Skipping third-party bike insurance is not allowed by law. You can skip on own damage insurance cover, but it is not recommended.
Third-party insurance is compulsory for all vehicles in India.
According to Section 39 of the Motor Vehicles Act, 1939, your vehicle must be registered before it leaves the dealer’s premises. Moreover, it is impossible to get insurance for an unregistered vehicle.