What’s covered and what’s not? Understanding two-wheeler insurance exclusions

Riding a two-wheeler gives a sense of freedom and adventure. Zipping through traffic, hitting the open roads on weekends, and running errands across town on your trusty bike open up life in exciting new ways.

But where there’s movement, there’s also risk. Accidents and bike damage can happen when you least expect it. Medical bills, vehicle repair expenses, and legal fees can significantly dent your finances.

This is where two-wheeler insurance steps in to protect you financially. It covers treatment costs if you or a pillion rider gets injured. It pays to fix your bike if it gets damaged. It also handles third-party liability claims if you’re at fault for causing property damage or bodily harm.

However, only some things are covered under standard bike insurance. Exclusions limit the protection offered. Awareness of these exclusions ensures you stay caught up during claim settlement.

So, let’s understand what key aspects are covered and what’s not under comprehensive two-wheeler insurance.

What does your bike insurance normally include?

A standard comprehensive two-wheeler policy protects against both own damages and third-party losses.

Here are the significant coverage benefits you can avail:

• Accident cover: This policy pays for repair and replacement costs if your bike suffers damage after an accident. It covers incidents like collisions, overturning, nasty acts by external parties, etc.
• Theft cover: This policy protects you if your two-wheeler is stolen. The insurer pays the Insured Declared Value (IDV) to replace the stolen vehicle.
• Personal accident cover: This policy provides compensation if you (the owner) or your pillion rider dies or suffers significant injuries in an accident. The payout amount is fixed and paid as a lump sum.
• Third-Party Liability Cover: This covers legal liabilities if your bike injures a third-party person or damages their property. The compensation amount is unlimited and paid directly to the affected party.
• Additional add-on covers: Some extra protections, such as, engine protect, consumables cover, depreciation cover etc., are also offered on payment of an extra premium.

Almost all significant risks associated with bike use are covered under standard own damage and statutory third-party liability protection. But there are still some exclusions you need to watch out for.

Key exclusions in bike insurance you should know

While bike insurance policies offer comprehensive coverage, some losses are excluded from the standard protection. Awareness of these exclusions ensures you have realistic expectations regarding your two-wheeler policy.

Here are some key exclusions in bike insurance you must be aware of before buying your policy:

1. Damage due to wear and tear

Standard bike policies do not cover damage caused by normal ageing and depreciation over years of usage. This includes wear and tear of consumable parts like tyres, tubes, brake pads, etc., and mechanical and electrical components breakdown.

To protect against such damage, you need to pay an extra premium for depreciation cover and consumables cover.

2. Damage while riding under the influence

If an accident happens when you are riding under the influence of alcohol or drugs, the resulting bike damage won’t be covered under your policy. Insurers consider this reckless behaviour on the rider’s part and exclude it from the standard protection.

3. Participating in speed racing events

The resulting bike damage will be excluded if you participate in high-speed racing events and stunt shows on your bike and meet with an accident. Using two-wheelers for any specialist sports or racing purpose nullifies insurance protection.

4. Driving without a valid licence

If you or whoever is riding your bike has no valid driving licence during the accident, the claim can be rejected for policy breach. So always renew your riding licence on time and keep unlicensed people from using your two-wheeler.

5. Modifications not informed to the insurer

If you make any alterations or modifications to your bike that enhance its value or performance after buying insurance, these must be informed to the insurer immediately. Please do so to avoid claim rejection later on grounds of non-disclosure of material information.

6. Losses outside geographical limits

Standard bike policies cover losses occurring within national geographical boundaries only. If you take your bike abroad and it suffers damage, losses won’t be covered. You need to specifically extend the geographical limits of the policy by paying an extra premium.

7. Losses occurring after policy expiry

Bike insurance provides protection only for the fixed policy tenure you have paid for – usually 1 or 5 years. You cannot raise any claims if any accident or damage occurs after your policy has expired. Timely renewal is essential for continuous coverage.

8. Other general exclusions

Apart from the above, there are other general exclusions, such as consequential losses, mechanical and electrical breakdown losses, damage from depreciation/wear and tear or negligence on the user’s part, losses due to ionising radiation or contamination by radioactivity, etc.

So, while bike insurance policies provide comprehensive protection, some losses are still excluded from coverage. Reading your policy document carefully helps you understand the exclusions applicable to your two-wheeler policy.

How to stay adequately covered despite exclusions

While several losses are excluded under standard bike insurance, you still have options to enhance your coverage and protect against such exclusions:

• Opt for broader add-on covers: By paying an extra premium, you can add protections like depreciation cover, consumables cover, engine protect, roadside assistance, etc. This fills gaps left by standard exclusions.
• Increase your IDV: Keep enhancing the Insured Declared Value (IDV) annually to account for inflation and added parts/accessories. A higher IDV leads to a higher claim amount in case of total loss or theft.
• Renew on time: Timely renewal ensures you don’t face rejections due to losses in the policy lapsed period. Set renewal reminders to continue seamless coverage.
• Inform modifications, use changes: Promptly inform the insurer about any modifications, commercial usage, etc., post-policy purchase so an extra premium can cover them.
• Ride safely and follow policy terms: Responsible riding, following all laws, and adhering to all policy terms ensure you don’t give insurers a reason to reject claims later.

Key takeaways

Riding your favourite bike gives wings to your dreams but carries associated risks. Two-wheeler insurance steps in to protect against accident losses, but it has coverage limitations.

Here are the significant takeaways about what’s covered and what exclusions you need to watch out for in bike insurance:

• Comprehensive policies cover own damage, third-party liability and personal accident losses.
• However, standard protection does not include wear/tear, DUI losses, or commercial usage damages.
• Losses like war, nuclear risks, and racing accidents are also excluded.
• Driving without a valid license, uninformed modifications and losses outside geographical limits are also not payable.
• Opting for wider add-on covers, increasing IDV value, prompt renewals help bridge gaps
• Reading policy documents helps understand applicable exclusions.

Being aware of the exclusions reduces unpleasant surprises at the time of claim settlement. Adequate covers and prudent riding ensure your two-wheeler stays protected on the roads.