Among various modes of personal transportation, two-wheelers are the most cost-effective and best option. For safety purposes, the government has introduced traffic and road rules that every traveller has to abide by. One of the rules is that the owner of the two-wheeler has to purchase a third-party bike insurance coverage. However, opting for a comprehensive bike insurance policy is recommended due to its 360-degree coverage.
An increase in thefts and crimes involving bikes and other two-wheelers has been seen recently. Hence, during such an unfortunate event, you might wonder, what will be the maximum coverage that you can receive from bike insurance?
Read on to know more about coverage in case of theft and the process to raise a claim under such a scenario.
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Knowing About Comprehensive and Third-Party Insurance
There are generally two types of insurance for the bike. One is the mandatory third-party insurance that covers any damage done to a third party and the other is a comprehensive policy. In the comprehensive cover, the insured’s bike gets complete coverage against theft, loss or damage.
Hence, in case of a stolen bike, you get financial protection under comprehensive insurance. Without this two-wheeler insurance policy, the owner may have to bear all the loss himself.
However, thanks to a comprehensive bike insurance policy, the theft claim is settled by the respective insurer based on the insured declared value. There are certain criteria to apply for the claim and become eligible for bike insurance coverage. To know everything about the process and how much is the maximum coverage for a stolen bike, read the article further.
How Much Does Insurance Pay for a Stolen Bike?
In case your two-wheeler is found during the claim processing and verification, you are not eligible to receive any claim amount.
Next, if the bike is stolen with no chance of getting it back, the amount that insurance pays can vary based on several factors. These factors include the terms and conditions of your insurance policy, the bike’s market value, that is, the Insured Declared Value (IDV) and if there are any applicable deductibles. Typically, all bike insurance policies will have a deductible. It is the amount you need to pay from your pocket before the insurer settles the rest of the claim amount.
The compensation amount for a stolen bike is typically based on its IDV. The IDV is the maximum sum assured that the insurance company will pay in case of theft or total loss of the bike. It is calculated based on the bike’s current market value after factoring in depreciation.
Let’s make it clear with an example. The cost of the stolen bike is ₹2,00,000, the depreciation in the policy is ₹15,000 and its deductible is ₹5,000. Then, in this case, the owner will be eligible for ₹1,80,000.
How to Claim Two-wheeler Insurance Policy for Bike Theft?
There is a set of guidelines that one has to follow after the theft occurs. Read further to know the steps that need to be followed while registering for a claim.
- The very first thing that needs to be done is to file a First Information Report(FIR) at the closest police station after getting to know about the missing vehicle. In the FIR, all details must be mentioned to the police officer like owner details, licence details, bike’s serial number, etc.
- Then, contact the insurance company and inform them about the loss. Enter all the required details in the claim form provided (either online or offline). These details include the policy number, bike registration number, FIR copy, etc.
- To proceed further, you need to inform the respective RTO. For that, submit all the documents and paperwork to complete notifying the required authorities.
- Also, submit the claim form with the required documents to the insurer. The insurance company will appoint a surveyor to inspect the case. After the survey, the report is submitted to the insurance company and based on that report, the compensation amount is released.
- The claim is then settled from the insurer’s end based on the Insured Declared Value(IDV) abiding by the policy terms and conditions.
Conclusion
With the aforementioned details, it is clear that vehicle insurance is the best option to save from big financial losses. Many companies offer bike insurance with a wide range of benefits and features at affordable costs. To buy a bike policy online, you can compare the prices online to get maximum policy benefits.
