Factors to know about Own Damage Insurance for Bike

What is Own Damage Bike Insurance?

As the name indicates, own damage bike insurance provides coverage that protects the self and your bike against damages and losses to your own bike due to accidents, fire, natural calamities, and also due to theft.

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Who is Eligible to Buy Own Damage Insurance?

Own damage bike insurance has been introduced for those people who already have active third party two-wheeler insurance in place, and wish to purchase an additional policy to cover their own bike against losses and damages.

If you are wondering why the Insurance Regulatory and Development Authority of India (IRDAI) introduced a standalone damage bike insurance, while we already have comprehensive bike insurance in place that covers both third party and own bike damages? While you have your doubts, we have a deeper explanation. Imagine you recently purchased a new bike and got a 3 year extended third-party bike insurance plan with it.

After some time you realize that you should get insurance to protect your own bike against damages, now to upgrade to a comprehensive policy you have to wait until the renewal. But not anymore, in such situations, you can get stand-alone damage insurance for your bike from a different insurance company.

How is the premium calculated for own damage bike insurance?

Own damage bike insurance premium is affected by several factors like the CC of the bike, model, make and year of the purchase of the bike, the Insurance Declared Value, the No Claim Bonus, any discounts being offered by the insurance company, and if you have opted for any add-ons. Usually, the below formula is applied.

Insurance Declared Value x Premium Rate (as per the insurance company) +  Add-on costs – NCB benefit and discounts.

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Here is the list of benefits of own damage bike insurance:

  1. Coverage of Damages Due to Accidents: Nobody ever wants to get involved in an accident, but some things may not be in our control. Increased traffic, reckless driving, and bad roads can amplify the chances of meeting with an accident. That is when an own damaged bike insurance coverage will come in handy, providing financial aid to cover any damages and losses that your bike may sustain.
  2. Covers Losses Against Theft: Theft of your bike is always a matter of concern, it puts you through emotional as financial strain. You can depend on OD insurance to cover the losses that you incur in case the bike is unfortunately stolen.
  3. Covers Damages Due to Fire: Fire breakout or an explosion in the vicinity of your bike may cause damages to your bike, which may lead to financial losses. If ever such a situation arises, OD insurance will help you cover such damages.
  4. Covers Damages Due to Natural Calamities: If you are proud of your driving skills, let us tell you that sometimes, it’s mother nature that may cause damage to your bike. For example what if a big tree gets uprooted and falls on your bike due to cyclone rains, or an earthquake. OD insurance provides you with coverage even for these non-accidental events.

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Here’s what is excluded in own damage bike insurance

  1. Third-party Liability Coverage: This is stand-alone bike insurance that doesn’t help you cover the losses incurred to a third-party bike, property, or person. It only covers damages to your bike, helping you with the needed financial aid for the repairs. Therefore in order to cover losses caused to third-party individuals, you must opt for third party two wheeler insurance to keep away from losses.
  2. Driving Without a Valid License: No insurance company will accept a claim if you are found to be driving without a driver’s license. So, legally it’s mandatory to carry your driving license at all times, failing to do so is breaking a law, and you can also be severely penalized.
  3. Driving Under the Influence of Alcohol: Similar to the above situation, driving under the influence of alcohol is an offence and no insurance company will honour your claim for settlement due to this.
  4. Self-Inflicted Damages are Not Covered: If at any time it is determined that the damages caused to the bike were not due to an accident but rather self-inflicted and intentional, the insurance company reserves the right to not accept the claim request.

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  1. Lack of Add-Ons: So if you haven’t opted for certain add-ons, then you can’t place a claim for it too.

Many insurance companies offer add-ons with their own damage insurance too to further enhance the protection. You can review them and choose the ones as per your need. We hope the above pointers have given you clarity on OD insurance policy.