What is Own Damage Bike Insurance & What You Should Know?

When protecting your two-wheeler, having a reliable bike insurance policy is essential. In this regard, an own damage (OD) bike insurance policy is one such important coverage that safeguards your two-wheeler against various unforeseen damages. 

So, if you are planning to get a bike insurance plan, should you go for OD bike insurance? 

Keep reading for a comprehensive overview and make an informed decision.  

What is Own Damage Bike Insurance?

Own Damage insurance for bike is a type of coverage that protects your two-wheeler against damages or losses caused to it. This insurance policy comes into play if natural disasters, accidents, theft,  riots, collisions, etc, damage your bike. It provides financial support to repair or replace the damaged parts of your bike, helping you avoid significant out-of-pocket expenses.

Why is Own Damage Bike Insurance Important?

Here is why own damage bike insurance is so important:

1. Protects Against Total Loss: OD insurance compensates you for the loss incurred during an accident when damages are beyond repair.
2. Covers Theft: In case your bike is stolen, OD insurance reimburses the Insured Declared Value (IDV), allowing you to replace it with a new one without worrying about the cost.
3. Streamlined Claim Process: Many insurance companies offer efficient and hassle-free claims, making it easier to manage the process in case of an accident or breakdown.
4. Covers Repair Costs: If your bike is damaged in a collision or breakdown, OD insurance helps cover the repair expenses, reducing your financial burden.
5. Affordable Premiums: OD bike insurance typically offers a more affordable premium compared to comprehensive policies, as it covers only the damage to your bike, with a one-year validity.

What is Covered and Not Covered Under Own Damage Cover?

The following points are covered under own damage cover:

• Accidental Damage: If your bike is damaged in an accident, your own damage insurance covers the repair or replacement costs of the affected parts.
• Natural Calamities: If your bike is damaged by natural events such as floods, earthquakes, or cyclones, this insurance plan covers the repairs.
• Man-Made Calamities: An own damage insurance protects your bike in case of damages caused by riots, vandalism, strikes, or other social acts.
• Fire & Explosion: If your bike is damaged due to fire or explosion, this insurance plan helps cover the repair costs, reducing your financial burden.
• Theft/Malicious Acts: If your bike is stolen or damaged intentionally, an OD bike insurance plan will replace it, giving you peace of mind during such unfortunate circumstances.
• Total Loss: If the bike has been damaged to an extent that cannot be repaired, the insurance plan pays according to the policyholder’s policy document.

Own damage cover for bikes excludes the following points:

• Third-Party Liabilities: The own damage cover does not include protection against third-party liabilities, such as injuries, death, or property damage caused to others.
• Driving Without A Valid Licence: If you are caught driving without a valid license, any damage caused to your bike will not be covered.
• Intoxication: If there is any physical damage to the bike when the rider is under the influence of alcohol or any intoxicant, the plan does not consider this damage.
• Mechanical or Electrical Failures: This insurance plan does not cover damages caused by mechanical or electrical failings.
• Consequential Damages: OD insurance plans do not include secondary losses or losses caused by an accident, fire outbreak, or other disaster.
• Wear and Tear: Own damages do not comprise ordinary wear and tear of the vehicle, generally due to natural factors.
• Usage Outside Policy Terms: Any damages resulting from using the bike in other activities not covered by the policy will not be paid for.
• Geographical Limitations: The coverage does not include any damage or loss that occurred outside the geographical region stated in the policy.

Factors Impacting Your Own-Damage Bike Insurance Premium?

The premium for bike insurance depends on various factors, which are as follows:

• Bike’s Age, Make, and Model: The age and type of your bike play a significant role. Newer models or luxury bikes may have higher premiums due to higher repair or replacement costs.
• Driving Experience: If you have a clean driving record and years of experience, you might have to pay a lower premium than a new rider.
• Location: Your geographic location often determines your premium. Differences in prices often reflect the higher rate of accidents or theft threats in some places.
• Bike’s Safety Features: Your premium will be cheaper if your bike has safety features such as anti-theft gadgets or superior security systems.
• Insured Declared Value (IDV): IDV stands for the bike’s market value and influences your OD insurance premium. Thus, it is understandable that an increase in the IDV will result in a higher premium.
• Engine Capacity: Bikes with higher engine capacities are generally riskier to insure and thus may have a higher premium amount. 
• No Claim Bonus (NCB): If you have not made any claims in the previous policy period, you can earn an NCB, reducing your premium.

Ultimately, purchasing an OD bike insurance plan rests with you. The cashless feature offers a seamless post-accident experience, reducing the stress and hassle during uncertain times. Additionally, a significant portion of medical treatment costs is covered in case of accidents, giving you peace of mind. So, take the time to carefully assess how this coverage can provide you with comprehensive benefits before making your final choice.