What is the Role of Theft Cover in Two Wheeler Insurance Policy?

What is the Role of Theft Cover in Two Wheeler Insurance Policy?
source: financetrain.com

A bike insurance policy protects from financial losses arising from damages to self, own vehicle, third-party property, and third-party persons. There are different types of bike insurance policies. For example, you can opt for an online 3rd party bike insurance or purchase a comprehensive policy that includes damages to your vehicle too.

Apart from losses arising because of accidents or mishaps, comprehensive policies offer protection in the event of the theft of your bike. In this article, we will discuss the importance of having a theft cover in your two-wheeler insurance policy.

Thefts are part and parcel of our daily lives. While we try to protect our vehicles by keeping them parked in a safe spot, we can’t rule out the possibility of the bike getting stolen. Compared to cars, bikes are easier to steal and difficult to recover. This is primarily because they are lighter in weight, smaller in size, and easier for thieves to dismantle and hide.

With the increasing population in our country and a corresponding increase in the number of vehicles on the road, there has been a marked shortage of secured parking places for bike owners. This exposes them to the risk of a stolen bike and the financial impact that follows.

Theft cover in Bike Insurance

When you opt for a third-party liability-only policy, the insurer covers the losses arising from damage to third-party property or persons if the damages are caused by your vehicle in a mishap or an accident. However, the policy does not cover damages caused to your bike or the costs of medical treatment you were to get injured in the process. On the other hand, a comprehensive bike insurance policy takes care of these costs. It also covers losses in the event of the theft of your two-wheeler. Therefore, a bike theft insurance cover must be included in your comprehensive car insurance policy.

How Does Bike Theft Insurance in India Work?

If you have opted for comprehensive two-wheeler insurance for a bike with theft cover and your bike gets stolen, then here are some things that you need to do:

  • File a First Information Report (FIR) with the police.
  • Call your insurance company to inform them about the theft and file a claim. They might need details of the incident as well as information about your bike and insurance policy.
  • As per law, you are also required to inform the Regional Transport Office (RTO) about the theft.
  • Collect and submit the following documents to the insurance company for the bike theft insurance claim:
    • Claim settlement form (filled and signed)
    • Original FIR
    • A copy of the Registration Certificate of the two-wheeler
    • A copy of the insurance policy document
    • Your driving licence copy
    • Transfer papers received from the RTO
    • The original keys to the bike
  • Follow up with the police station and obtain a no-trace report. This report confirms that the police are unable to locate your stolen vehicle and allows the insurance company to process your claim.

Many insurance companies hire investigators to try and locate the bike. These investigators can take up to 90 days to ascertain if your bike is traceable or not.

The Importance of the IDV of the Bike

When you buy the two-wheeler insurance for the bike, the insurer determines the Insured Declared Value or IDV of the vehicle based on its condition, make, and model. You have the choice to reduce the IDV to pay a lower premium on your insurance policy. However, if your bike gets stolen, then the insurer will reimburse the IDV as per the policy. Hence, ensure that you choose the IDV carefully.

Additionally, if your bike is under a bank loan when it gets stolen, then the insurer will transfer the claim amount to the bank. The difference, if any, will have to be borne by you.

Summing Up

Two-wheelers are more prone to accidents and theft than four-wheelers. Also, if you live or work in or around an area where thefts are common, then it is important to ensure that your bike insurance policy covers the theft of your bike. Also, while you buy bike insurance online, ensure that you don’t choose a low IDV as it can impact the claim amount in the unfortunate event of your bike getting stolen. Instead, buy an online two-wheeler policy that is designed to cater to your specific needs and offer financial support when you need it the most. Good Luck!