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Bike Warranty or Bike Insurance, Which One is Better?

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Published on Oct 10, 2021. EST READ TIME: 3 minutes

When you own a bike/two-wheeler, distinguishing between bike insurance and bike warranty is essential. Both bike insurance and bike warranty come in handy when any unfortunate situation crosses your path. As a bike owner, it is essential to know that having bike insurance is mandatory, whereas the bike warranty comes along with its purchase for a specific period. As per the Motor Vehicles Act, every vehicle plying on Indian roads should have third party bike insurance. The online insurance for bike can be purchased with ease in just a matter of few minutes.

What is Bike Insurance?

When you ride a bike, the chances of accidents are higher, which can cause damage to another person’s vehicle/property and your bike. At this time, if you don’t have an active bike insurance policy, it can lead to a financial burden. Apart from this, your bike can also suffer losses due to unforeseen events like floods, theft, and fire outbreaks covered under the bike insurance policy. However, to get all this coverage, you need to have a comprehensive bike insurance policy. As per the Government clause, you need to have at least a third party bike insurance policy that only provides coverage against third party property damage, injury to third party persons and personal accident cover.

What is Bike Warranty?

In bike warranty, the manufacturer gives commitment to replace any defective part of the bike. The bike warranty is offered for a specific period of time, under which parts specified by the manufacturer can be replaced if it breaks down within the expiry date. Bike warranty is given along with the purchase of the new bike.

Inclusion & Exclusion in Bike Warranty

Inclusion	Exclusion
1. Breakdown of any mechanical parts like engine, gearbox, etc are covered.	1. Labour cost, wear and tear of engine or any modification done are not covered.
2. If safety equipments like ride by wire, ABS, etc are found defective, they are replaced.	2. Damages caused by illegal racing are not covered.
3. Electrical parts like CDI unit, ignition coil, etc are also replaced under bike warranty.	3. Damage to bike parts caused by negligent riding are also not covered.

Types of Bike Warranty

There are two types of bike warranty:

1. New Warranty:

New bike comes along with a warranty period of three to five years, which is generally provided by the manufacturer and it varies from bike to bike.

2.Extended Warranty:

When the bike warranty expires, you can purchase the extended warranty. It offers coverages, which differ from the new warranty.

Difference Between Bike Insurance & Bike Warranty

Coverages Bike Insurance Bike Warranty

Bike warranty does not provide any coverage for damage to third-party person / property.

Coverages	Bike Insurance	Bike Warranty
Third-party Liability	Bike insurance provides coverage for any damage caused to third-party property/person during an accident.
Defective Part	Bike insurance does not give any option to make claim for defective parts.	Bike warranty guarantees replacement of defective parts.
Add-ons	HDFC ERGO bike insurance policy gives option to buy meaningful add-ons like zero depreciation cover and emergency assistance cover.	Bike warranty is not customizable, it will only replace defective parts if the damage is not caused by negligent riding.
Natural Calamities	Comprehensive bike insurance policy provides coverage against natural calamities like flood.	Bike warranty does not provide any coverage against natural calamities.
Accidental Damage	Comprehensive bike insurance policy provides cover for any damage caused to own vehicle in an accident. However, the rider during accident should not have taken drug/alcohol or break any traffic rules.	Bike warranty does not cover damage caused to vehicle by any accident.

Bike Warranty or Bike Insurance? Which is more useful?

Both bike warranty and bike insurance comes handy as per the situation. Bike warranty comes along with the purchase of new bike and is valid up to three or five years depending upon the manufacturer. If any mechanical or electrical part of the bike fails during the warranty period, it can be replaced without any hassle. However, when the bike gets damaged due to flood, accident or gets stolen, then bike insurance policy has the upper hand as it provides overall coverage. That’s not all bike insurance also provides coverage for the damage caused to any other person/property during an accident or collision. Also, it is compulsory to purchase to have at least a third party bike insurance policy while plying on road. If traffic police catches you riding without bike insurance policy, you will have to pay fine of Rs 2000.

Conclusion

The manufacturer offers a bike warranty on purchasing the new two-wheeler, for which you don't have to pay additionally. On the other hand, you can buy bike insurance by visiting the HDFC ERGO website, which offers an excellent bike insurance policy. If your bike insurance policy has expired, you should renew it immediately to avoid the policy from getting lapsed. While you can renew the bike warranty on its expiry by visiting the nearest dealer outlet of that particular bike manufacturer.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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