by
mohit bohra
| May 05, 2025
Navigating bike insurance can be tricky, especially when it comes to deductibles. Understanding how they work is crucial for balancing your premiums and potential out-of-pocket expenses.
This article explains bike insurance deductibles and explores the various types and factors influencing your choice. By clarifying this key aspect, you can choose the right insurance coverage for your motorcycle.
What is a deductible?
An insurance deductible is the amount the insured must pay in case of a claim. The two wheeler insurance policy covers the remaining expenses. The deductible also determines the premium amount and overall claim settlement in case of an accident.
Deductibles in insurance balance risk exposure and maintain affordable premiums. The choice of deductible amount can significantly impact your financial commitment during a claim and the cost of your insurance policy. Deductibles ensure that policyholders take responsibility for some repair or replacement costs while preventing small and fraudulent claims.
Types of deductibles
The two types of bike insurance deductibles are:
- Compulsory deductible
The government insurance regulatory body fixes the compulsory deductible, and it applies to all bike insurance plans. The mandatory standard deductible for vehicles with an engine capacity of less than 150cc is ₹100, and for motorcycles with an engine capacity greater than 150cc, it is ₹200.
- Voluntary deductible
A voluntary deductible is a flexible amount chosen by the policyholder. While choosing a higher voluntary deductible may reduce the annual bike insurance premium, you will probably absorb more in the event of a large claim.
The voluntary deductible is suited to those who are confident in their riding capabilities and wish to pay lower premiums.
How do insurance deductibles work?
A deductible comes out of the payout after you file a claim.
Let’s consider an example:
You hold a bike insurance policy with a voluntary deductible of ₹2,000.
You met with an accident, and the repairs cost ₹10,000.
You must pay both the compulsory and voluntary deductibles, and the insurer will pay the remaining claim amount (₹8,000).
Impact of deductibles on bike insurance premiums
Higher voluntary deductibles lower the premium, making your bike insurance policy cheaper.
Here’s an example of how a voluntary deductible can affect your premium:
Your annual bike insurance premium is ₹3,000 without a voluntary deductible.
Assuming you choose a voluntary deductible of ₹1,000, your premium may be reduced to ₹2,700.
Although this reduces your annual costs, it also means you will have to pay more in the event of an accident.
Factors for choosing a bike insurance deductible
Here are some of the factors to consider when selecting the right bike insurance deductible:
- How often you ride: A lower deductible may benefit you if you ride daily.
- Increased potential for claims: Riders who take frequent long trips or ride in high-traffic conditions may prefer a lower deductible for greater financial protection.
- The condition of your bike: A lower deductible may provide better coverage if it is brand new and expensive.
- Risk of personal loss: If you can cover a significant amount of damage, a higher voluntary deductible can be a beneficial selection for you to lower your premium.
Claim process and deductibles
The deductible is deducted from the total claim amount when you file a bike insurance claim. Here’s how the process usually goes:
- File the accident claim immediately.
- Damage assessment: An insurance surveyor checks the repair value.
- Deductible changes: The mandatory and voluntary deductibles are applied to the claim amount.
- Claim settled: The insurer pays you the approved claim amount after deducting your portion.
How to reduce bike insurance premiums without increasing deductibles?
A higher voluntary deductible can certainly reduce your bike insurance premium, but if you don’t want to opt for one, here’s how to bring your premium down:
- Have a No-Claim Bonus (NCB): Restricting the number of claims can entitle you to an NCB that can help lower your premium significantly.
- Compare policies from different insurers before making your selection.
- Get a long-term policy: Providers can often offer discounts on longer-term policies.
- Consolidate insurance policies: If you hold several insurance policies (like car and bike insurance), bundling them with the same provider could give you discounts.
Conclusion
It is important to pick a comprehensive bike insurance plan for daily commuters and casual bike riders. Understanding bike insurance deductibles is important when selecting the right policy. A higher deductible provides a lower premium but greater out-of-pocket expenses. You can decide on a suitable deductible based on your riding behavior and financial situation. Compare policy plans and choose one that best suits your requirements and offers sufficient protection.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.