Cycle Insurance: Types, Importance & Inclusions

With technology advancements and growth in different sectors, we humans have transformed our lives in many ways over the years. For example, instead of using transistors, we buy large television sets to stay updated with trending news, mobile phones instead of landline phones, and more. However, in terms of transportation, a large population of India still depends on bicycles to travel for it is cheap and environment friendly. We have modernized in different fields, but still, a good percentage of our working population in urban India uses cycles to commute as it requires minimal maintenance.

Cycles are an easy-to-manage and cost-effective transport option but still, there are cases of damage, accidents, and stealing. If you are a cyclist, it is important to get your cycle insured. Cycle Insurance will offer you complete coverage and financial protection in case of theft or damage. In fact, in the event that the rider sustains injuries, it also offers personal accidental coverage. One can choose from different cycle insurance plans as per their need and budget.

Let us learn more about cycle insurance, its types, and its importance. Further, we will pen down what all is included and excluded in Cycle Insurance. Also, some of the important things that one must consider when buying cycle insurance.

Types of Cycle Insurance

Here are some of the different types of bicycle insurance policies to choose from:

1. Comprehensive Cycle Insurance: 

This type of insurance plan offers coverage to all aspects of ownership, i.e. theft cases, accidents, and natural disasters. It covers both personal injuries and property damage.

1. Collision Insurance: 

Another type of insurance plan that offers coverage to your cycle if it is involved in accidental damage or loss by another vehicle. It covers repair costs and other damages that happened to your cycle components and accessories.

1. Third-party Liability: 

Under this insurance type, the insured gets financial protection if someone else gets injured from your cycle or faces property damages. It covers legal costs and compensation if you are held responsible for any such mishap under third-party liability insurance.

Importance of Buying Cycle Insurance

Indian commuters who often choose bicycles or two-wheelers as an affordable source of transportation also face the risk of road accidents. However, by investing in financial schemes or insurance plans, these individuals can overcome any financial loss resulting from accidental damage. Here are a few more reasons why it is important for vehicle owners to invest in cycle insurance plans:

• Offers Protection Against Theft: 

For urban people or lower-income groups that rely mostly on bicycles for transportation might face certain setbacks. Without their bicycle, they might find it difficult to go to work and earn a daily source of income. In case of emergency, they might struggle to reach a nearby hospital or support center resulting in serious consequences. Losing a bicycle will not only result in financial burden but also limit them to travel and meet their daily needs.

However, if you get your cycle insured by a trusted insurer like InsuranceDekho, then you don't have to worry much. The moment you report about the theft incident, the insurer will offer coverage for the cost of cycle replacement.

• Financial Stability against Natural Disasters: 

One has no control over landslides, floods, or earthquakes as they occur naturally. Also, fire in certain cases can happen due to various reasons and you cannot do anything major about it. However, with the right insurance plan, you can claim for your loss under these unforeseen events.

• Coverage For Accidental Damage: 

Another importance of buying cycle insurance is financial protection against accidental damage. Accidents can happen anytime and cycle accidents are quite common. Rash driving, alcohol consumption while driving, road intersections, and various reasons can lead to accidents. With bicycle insurance in place, you can claim coverage for repair or vehicle replacement costs. Thus, sparing you from unnecessary or unforeseen event losses.

• Liability Protection: 

Having a third-party cycle insurance offers protection to your cycle financially in cases where your cycle is being involved in an accident. For example, if your disbalance or road intersection resulted in hitting someone's car or injuring an individual, the insurance plan will offer coverage for repair costs or medical bills. Thus, providing financial protection from any harm or losses to third parties.

What is Included in Cycle Insurance?

Here are all the pointers that are included under cycle insurance:

• Accidental Damage: Any damage caused to your cycle during the accident due to falling, collision, or any other mishap is included in the cycle insurance plan. The coverage includes cycle repair costs, or in certain situations, replacing it entirely.
• Natural Activities: Offers coverage to any form of damage caused due to natural disasters. Be it fire, floods, earthquakes, or landslides, any such unforeseen event that results in damage to your cycle is covered under this insurance plan.
• Theft: Theft cases are also covered under this insurance plan. In case your cycle gets stolen from your home or workspace, you are eligible for this insurance plan.
• Third-Party Damages: Cycle insurance also covers the costs in the event that a mishap results in damage to a third party, i.e., your cycle collides or injures a third-party.

What is Not Included in Cycle Insurance?

Here are all the pointers that are excluded from cycle insurance:

• Wear and Tear: Bicycles are a common mode of transportation for many individuals and families. In case, your vehicle faces a normal wear or tear due to regular use, it will not be included under this policy.
• Tires: Cycle tires are easily destroyed because they are composed of rubber. Damage to the tire or puncture is excluded from the bicycle insurance coverage plan.
• Locking Issues: Bicycle insurance would not apply if the owner's carelessness in locking the bicycle led to theft or disappearance of the bicycle.
• Out-of-Age Limit Claim: Any individual claims below the age of 18 years or older than 70 years will not be recognized under cycle insurance in India.
• Previous Medical Conditions: Any previous accident hospitalization expenses cannot be claimed or included in this insurance plan.

Things to Consider Before Buying Cycle Insurance

Some of the key factors that one must keep in mind when selecting bicycle insurance, include:

1. Coverage Level: There are two main forms of cycle insurance: comprehensive and third-party, depending on the coverage. Select a plan that provides appropriate coverage for your cycle based on how it is used, how much you spend, and any other obligations you may have. It is important to evaluate your budget and needs before proceeding with the search.
2. Type of payment and repayment methods available: It is important to go through the policy terms carefully and understand the mode of payment and repayment options available. Look for exclusions, limitations, and other details before signing for the insurance plan.
3. Premium rates: In addition to up-front costs, some insurers have variable fee structures depending on the behavior of collective claims, which means that your rates are always changing based on whether or not other clients are filing claims. You can make sure that your premiums are both constant and unique by choosing a bicycle insurance policy that is tailored to your needs and riding style.
4. Inclusions and exclusions: It is crucial to look for even minor details related to the policy, i.e. what all is included or excluded in the insurance plan. Further, you must check the available plans and compare them based on your requirements as well as cost, coverage, inclusion, exclusions, etc., to make an informed decision.
5. Worldwide applicability: Another key factor to look for is whether your policy offers worldwide coverage. This factor is important generally for individuals who travel frequently or participate in international events. So, if you are one of them, make sure to look for this factor as all insurance policies do not offer global coverage.

FAQs

• What is cycle insurance?

Cycle insurance policies offer financial stability and protection against theft, accidental damage, or natural calamities. This insurance plan is not mandatory in all countries but having one can protect you from potential risks and financial losses.

• What is the minimum age to purchase bicycle insurance?

People below the age of 18 years and above 70 years are not eligible for bicycle insurance and cannot claim one.

• Does cycle insurance cover self-damages?

Yes, the insurance plan covers self-damages. If you met with an accident while riding or caused any damage to the property, the insurance company will cover the repair or replacement cost.

• Will the costs incurred by the third party be covered by bicycle insurance?

Yes, in cases where the third party faces injuries due to the accident, the insurance company will provide legal costs and compensation as per the cycle insurance inclusions.

• How do I make a claim on my cycle insurance?

Get in touch with a trusted insurance provider like InsuranceDekho. Contact them at support@insurancedekho.com as early as possible and provide the event details, necessary documents, and police reports if involved in theft or accident to file a claim.