Why You Should Get Activa Insurance for a Honda Activa
When the Honda Activa was launched, nearly two decades ago, it changed the landscape of scooters in India. Even today, the Honda Activa has maintained its position as one of the most favourite scooters for Indians in cities, as well as villages. Being easy on the pocket and easy to drive makes the Activa popular among youngsters and the elderly too.
In India, it is mandatory to have a third-party bike insurance policy as per the Motor Vehicles Act of 1988. A third-party bike insurance policy has limited coverage and does not pay for the damages caused to your bike. A comprehensive Activa Insurance policy, on the other hand, covers the damages caused to your Honda Activa in case it gets into an accident.
About Honda Activa
The Activa is one of the most popular scooters from Honda and one of the highest-selling too. Its efficient performance, utilitarian features, and popular styling have made it a preferred name in two-wheelers across India. Some of the unique features of the Honda Activa are:
- Used equally by men and women – unisex design
- Mileage of 55 to 60 kmpl
- Optimum engine capacity
- Low-cost maintenance due to a wide service network of Honda
Do I need Honda Activa Insurance?
The on-road price of the Honda Activa varies from around ₹69,000 to ₹79,000. It weighs around 110 kgs which makes it easier to navigate, especially in city traffic. Despite their lightweight and nimble nature, two-wheelers are always exposed to the risk of accidents, mishaps, and damages due to several reasons. When you opt for a comprehensive 2-wheeler insurance policy for your Activa, the insurer offers coverage for such damages. Without a two-wheeler policy, you will have to bear the costs of repair and replacement of parts.
Should You Opt for a Third-party or Comprehensive Honda Activa Insurance?
Many bike owners opt for third-party insurance of two-wheeler Activa since it is mandatory. However, these policies offer protection from third-party liabilities only. This means that if your bike meets with an accident and gets damaged, then these policies do not offer coverage. The premium of third-party liability-only policies is low.
On the other hand, if you opt for comprehensive Activa insurance, then the insurer offers coverage for third-party liabilities and damages to the insured two-wheeler. However, the premium of a comprehensive plan is higher than a third-party plan. You can also opt for add-on covers with a comprehensive bike insurance policy to customise it as per your needs. Make sure that you choose the type of policy based on the kind of coverage you need.
How Much Does the Activa Insurance Cost?
The third-party insurance for Activa costs the lowest, but it also offers the lowest coverage. Since third-party insurance is mandated by law, its price is also regulated by IRDAI. But the comprehensive insurance for your Honda Activa can vary from one insurance provider to another, and its price depends on certain factors —
- Age of the scooter: Insuring an older Activa costs less than a newer one.
- Riding history: Bike owners with a history of accidents might have to pay a higher premium for a bike insurance policy
- Add-on covers: If you opt for an add-on cover, then the premium amount increases.
- Deductibles: Many insurers allow customers to opt for a voluntary deductible that helps determine the premium amount of the two-wheeler insurance.
We suggest you ask the insurance broker or read the policy document to know about your Activa insurance details.
Which Add-on Covers Should You Opt For?
If you decide to buy comprehensive Activa insurance, then you can choose from a range of add-on covers offered by the provider. Here are some popular add-on covers used by Activa owners:
- Zero Depreciation – Depreciation is an important aspect of bike insurance. A bike depreciates in value as it ages. Hence, when you file a claim, the insurance provider deducts depreciation to determine the settlement amount. With a Zero Depreciation cover, you can negate the impact of depreciation on the claim amount.
- NCB Protection – When you opt for Activa Insurance renewal, the insurer will offer a discount on the premium if you have not filed a single claim during the previous policy term. This is called a No Claim Bonus or NCB discount. This is a progressive discount that increases as the number of subsequent no-claim years increases. However, even if you file a single claim, the NCB discount is reset. With the NCB protection add-on cover, your NCB benefits are not reset even if you file a claim.
Conclusion
While it is mandatory for bike owners to have a two-wheeler insurance policy, you can choose between the mandatory third-party insurance and the optional comprehensive insurance policy based on your needs. Remember, there are many providers offering bike insurance plans. Hence, research your options and compare providers and plans to find the best protection for your bike.