Home Finance How Useful Is Bicycle Insurance In India?

How Useful Is Bicycle Insurance In India?

Bicycle Insurance In India

As the awareness around global warming and the environmental consequences of using motorised vehicles continue to grow, cycling has emerged as a viable alternative mode of transport for city dwellers. In almost every city in India, you are sure to find a substantial percentage of the population (42% urban and 46.12% rural) using cycles as their primary mode of transportation.

India manufactures almost 10% of all cycles produced in the world, which accounts for nearly 125 million units. The annual demand is around 10 million units, which when compounded over the years, is a mind-boggling number. Most of these units are not covered by cycle insurance, but there’s a growing interest in it with each passing day.

The need for cycle insurance

Cycles come in many variants; the cost of basic ones start from anywhere between Rs. 2,000 and Rs. 3,000 whereas the top professional models may cost up to Rs. 50,000 or even more. Moreover, professional cyclists often spend thousands more on accessories and upgrades.

Cycle insurance takes the centre stage if you wish to protect your valuable asset from natural or human-made calamities. Several insurers offer this policy with varying features.

For example, Bajaj Finserv brings you Cycle Insurance Cover which guarantees financial protection against numerous unfavourable circumstances.

Following are some of the instances generally covered under a cycle insurance policy:

  • Natural disasters

Cycles are much more vulnerable to natural calamities than cars and other automobiles. Cycle insurance in India typically covers most of the natural disasters like flood, fire, and so on. If your cycle is damaged fully or in part due to such calamities, you will receive the insurance amount required to repair or replace it.

  • Human-made disasters

The best cycle insurance policies also cover specific human-made disasters such as riots and violent strikes.

  • Theft and burglary

If your cycle is stolen from your house or anywhere else, you will be eligible for a cover of up to Rs. 50,000 for the replacement of the stolen unit.

  • Accidental death

Although accidental death is rare for cyclists, the accidental cover clause in cycle insurance in India is not something you should take lightly. You may avail benefits of up to Rs. 2 Lakh for a low premium of Rs. 899 per annum. If you want to upgrade your coverage limit, you may opt for the Rs. 3 Lakh cover which entails an annual premium of Rs. 1,499.

  • Accidental damage

A cycle insurance policy covers you against accidental damages to your cycle and provides a coverage of up to Rs. 50,000. As noted, you get covered against a host of damaging circumstances with a cycle insurance cover.

Salient features of bicycle insurance in India

Following are some of the features of cycle insurance cover that you should be aware of before opting for one:

  1. It offers global coverage. You may take your cycle for an adventure trip outside India and still be covered by your insurance policy
  2. You get the reimbursement according to the agreed or invoice value.
  3. The tenure for bicycle cover is set at 12 months.
  4. The policyholder must be between 18 and 70 years of age.
  5. The insured cycle should not be more than a year old at the time of availing the insurance policy.
  6. Disappearance for more than 1 year will be regarded as legal death, and the coverage can be collected for that.

Thus, a bicycle insurance is a viable option to remain prepared for any contingencies associated with it and enjoy riding it worry-free.