The alarming rise in vehicle thefts, especially bike thefts, has left bike owners feeling vulnerable. According to recent statistics, vehicle theft in India has increased by 2.5 times, leaving owners with financial losses and emotional distress.
One effective way that can help combat this growing concern is to insure bikes against theft.
By investing in bike stolen insurance and prioritising on time bike insurance renewal, bike enthusiasts can mitigate financial risks associated with theft and focus on the joys of biking rather than worrying about potential losses.
Let us delve into the intricacies of theft cover in two-wheeler insurance, exploring its features, necessity and benefits as well as examining whether third-party bike insurance provides this cover
What is Theft Cover in a Bike Insurance Policy?
Many people wonder “Is theft covered in bike insurance?”. The answer is yes.
Theft cover is an integral element in two-wheeler insurance that helps bike owners financially protect themselves from losses resulting from unexpected two-wheeler theft incidents.
Offering financial compensation and peace of mind, a bike insurance policy with theft cover ensures that the insured vehicle is adequately protected, which in turn provides the required reassurance to the policyholder.
Which Types of Two-Wheeler Insurance Cover Theft?
When buying two-wheeler insurance, it is imperative to know which type of insurance covers theft. While there are three types of bike insurance policies, only two come with a theft cover, namely:
- Standalone Own Damage Two-Wheeler Insurance: Provides coverage in case of total loss or damages caused to the bike due to theft, natural disasters or road accidents.
- Comprehensive Bike Insurance: Offers protection against third-party liabilities as well as damages/loss caused by theft, natural/man-made disasters, etc.
It is important to acknowledge that third-party bike insurance does not offer theft coverage and helps only when the policyholder’s bike ends up causing damage/injuries to a third-party vehicle or person.
Note: Theft cover availability may vary among insurance companies. Therefore, before buying bike insurance, inquire about theft protection by asking “Does bike insurance cover theft?”.
Why Is Insurance for Stolen Bikes Essential?
Theft cover in two-wheeler insurance is crucial for several compelling reasons, including:
- Risk Mitigation: A two-wheeler insurance policy with no theft cover can cause unnecessary stress and lead to significant loss in case of theft.
Therefore, including theft cover in a bike insurance policy is considered vital as it alleviates financial risks associated with bike theft and offers confidence in unforeseen events.
- Reduced Financial Burdens: Theft cover in two-wheeler insurance provides policyholders with compensation for the loss incurred due to bike theft.
This much-needed financial support significantly minimises financial burden and helps maintain financial stability in times of need.
- Sense of Security: Bike insurance theft cover shields bike owners from emotional distress and financial uncertainty related to theft and provides a sense of security.
This enhances overall confidence while driving and allows policyholders to focus on the road ahead, knowing that they have a financial safety net in place.
Steps to Take if Your Insured Bike is Stolen
- Intimate the nearest police station about bike theft to file the First Information Report (FIR), providing essential details, such as your bike’s registration number, chassis number, serial number, etc.
- Inform your bike insurance policy provider immediately and provide the required bike insurance policy-related information to initiate the claim process.
- Visit the closest RTO (Regional Transport Office) to your home to notify them about the theft. Here, as mandated by RTO regulations, you will have to follow the documentation process and complete the necessary formalities to obtain transfer papers and relevant paperwork.
- Submit the necessary documents to your insurer, including:
- Bike insurance policy papers
- Two-wheeler’s registration certificate
- Duly filled and signed claim form
- A copy of the driving licence
- The letter shared with the RTO
- Transfer papers from RTO
- Original copy of the FIR
- Two-wheeler’s keys
- Wait for the police to issue an untraced report which is usually provided after a month in case the stolen bike cannot be located.
- Submit the no-trace report to the two-wheeler insurance company so that it can verify and process the claim.
- Upon successful verification, the insurer will transfer the bike’s ownership to its name and reimburse the Insured Declared Value (IDV) of your bike to your registered bank account.
Wrapping Up
The event of bike theft can be devastating, particularly for those who do not have bike insurance or are unsure of the answer to the question “Does insurance cover theft of bikes?”.
However, with a valid two-wheeler insurance policy in hand, bike owners can now protect their valuable investments and recover quickly from bike theft-related losses.
