Upgrading your bike? Keep an eye on your insurance
The need for mobility is growing rapidly in India, which is higher than the growth rate any other country has ever witnessed at any point, coupled with the fact that India is one of the fastest developing economies in the world. India has always been a 2-wheeler dominated auto industry with around 80% sharein the total automobile sales pie.
Although the sales volumes in cities have been consistent, large scale road-construction projectsand rising incomes are leading to a growth in sales volumes in the earlier underpenetrated smaller towns and villages. Consumer expectations of products as well as the price points do not vary by the tier of city. While, the nature of demand for 2-wheelers in metros tends to be towards replacement, we have observed that there are more first time buyers in Tier II/III cities.
It is interesting to note, that there has been an increase in demand of motorcycles with larger engine capacities. While this space is ruled by bikes with engines capacities between 300 and 500 cc, the market for bikes above 500 cc is heating up as well. These bikes have become popular especially among the metro and Tier 1 city based riders. Although these bikes are expensive, better availability of finance and a few manufacturers making these bikes locally or sourcing local parts, they have become within grasp of the public. Thus, an unfortunate accident of these bikes causing damage to the parts, which are quite expensive can leave a huge hole in the pocket of the owner.
Below are some of the covers one can opt for:
Zero or Nil - Depreciation cover along with Engine protector:
Zero or nil depreciation cover is a must have for your bike, given that expenses for even small part repairs can be astronomically high.Especially in case of CKD (Completely knocked down) bike wherein the parts are imported or exported and are assembled to make one complete bike and also for CBU (Completely Built Units) bikeswhere a fully assembled bike/automobile is imported/exported to/from some other country. Most of the imported bikes in India come as a CBU. With this cover, you get the actual value of the damaged part, barring the compulsory deductible on every claim.
Small things can add up to the overall expense, like consumables of your bike. Consumables are parts or factors of the automobile which when used are completely consumed such as engine oil, gear box oil, power steering oil, brake oil, battery electrolyte, fluid, radiator coolant, nut & bolt, screw, and items of similar nature excluding fuel. Consumable cover is an add-on that offers coverage for consumables, which is generally not a part of your basic motor insurance policy. This is an essential add-on cover as in case of accident, replacing oil and other consumables can be an expensive affair. Consumable cover acts like a top-up for your zero depreciationand engine protector insurance.
Pillion cover or extra personal accident cover for passenger:
Super bikes are performance bikes with high engine capacity and power which requires practice to get a handle of, especially when riding with a pillion rider. The accidents on these bikes can be dangerous and in many cases fatalnot just for the rider, but also for the pillion passenger. Hence,I strongly recommend that in addition to the compulsory owner-rider personal accident cover, additional cover can be taken for 2 more riders. One for any rider who is not the owner and other for the pillion rider with a cover of at least `15 lakh. I would also urge that speed be limited within legal norms set by the road transport authorities and be only tested on race track conditions with proper precautions, under expert supervision along with necessary safety gear.
(Gurneesh Khurana is the President & Country Head, Motor Business, Bajaj Allianz General Insurance)