Bikes are a very favorable mode of transport as they’re the fastest way to commute on Indian roads. Bikes can drive past vehicles in traffic, occupy lesser parking space, consume less petrol and for some they’re a style statement too. But what people forget often is that they too are a huge responsibility and not only need to be maintained properly but also need to be insured.

For first timers it may seem like a huge task to opt for the correct insurance policy considering the various options that are available in the market. More often than not, they end up purchasing insurance policy which their friends own or the one which seems the most lucrative in advertisements without weighing the available options carefully.

Here is a guide for beginners to help them select the correct two-wheeler insurance plan:

• So why at all do you need a bike insurance?

Well the answer is simple. You don’t want to pay any expenses from your own pocket in case of accidents and thefts. Depending on the policy you choose the insurance company promises to make the necessary payments.

• My bike insurance policy options!

It’s mainly of three types-

1. Third Party Only- Which covers the expenses of only the third party in case you are involved in an accident. This is considered a minimum mandatory insurance that every bike owner should possess according to the Motor Vehicle Act.
2. Third Party Fire and Theft- This covers expenses of the third party and also includes payment made by insurers in case the bike is stolen or damaged by fire.
3. Comprehensive Bike Insurance- It is the most complete cover taking into account all expenses to the third party as well as the bike owner in case of accidents.

Higher the level of insurance greater is the premium. You should thus evaluate your needs before purchasing one.

• Factors influencing two-wheeler insurance policy premium- Various factors like type of bike, the area in which you live (whether or not it’s a high vehicle crime and accident prone area), age and experience of the biker (lower and less experienced bikers have to pay high premiums), security of the vehicle and any additional modifications to the manufactured vehicle plays a role in determining the policy premium.
• Insurance Declared Value (IDV) is the maximum amount that is given as compensation in case of any accidents and other mishaps. It is calculated by manufacturer’s listed selling price and is adjusted as per need. It also depends on the age of the vehicle with percentage depreciation as low as 5 % for 6 month old vehicles. One should look into the IDV properly before getting the policy.

One should also keep in mind that there are certain things that a bike insurance policy does not cover such as damage by a person not possessing a valid driver’s license, damage by a person under the influence of alcohol, drugs etc, damage during war, general ageing of the vehicles to name a few.