Motorcycle Insurance 101 - All you need to know about motorcycle insurance, ranging from different types of insurance policies, No Claims Discount (NCD), and travelling overseas on your bike

The purpose of purchasing motor insurance is to safeguard yourself against hefty financial payouts or losses you might incur in the cause of an accident. You will also be insured against any potential damage or injury that you may deal to a third party’s property. We give you a rundown on motorcycle insurance.

 

 

Firstly, it is mandatory to have an insurance policy (A Third Party policy at the very least) to drive or ride a vehicle on the road. Generally, there are 3 main types of insurance policies available.

 

Third Party

• Death/injury to other parties
• Damage to other parties’ property

Third Party, Fire, and Theft

• Death/injury to other parties
• Damage to other parties’ property
• Fire damage to, or theft of, your vehicle

Comprehensive

• Death/injury to other parties
• Damage to other parties’ property
• Fire damage to, or theft of, your vehicle
• Accidental damage to your vehicle

 

Conversationally, in the past, the older generation of riders calls the “Comprehensive” policy Number 1 Insurance/First Party Insurance. Similarly, “Third Party, Fire and Theft” is called Number 2 Insurance/Second Party Insurance, while “Third Party” is called Number 3 Insurance.

There are also additional benefits that are available for comprehensive policies, at additional premiums. They are:

Optional benefits (Comprehensive policies)

• Damage arising from flood or windstorm
• Damage arising from riot, strike, and civil commotion
• Windscreen Damage
• Personal accident benefits for passengers
• Liability of passengers for acts of negligence
• Additional excess

 

A No Claims Discount (NCD) grants you a lower insurance premium if no claim has been made under your policy for at least a year. It changes depending on your vehicle’s type (we will focus solely on motorcycles here), as well as the period without claims. The values, as indicated below, are the same across the industry.

Period of insurance without claims (NCD upon renewal)

1 year

-10%

2 years

-15%

3 years and above

-20% (Max)

If you are deemed to not be completely wrong during an accident, it is possible that your NCD will not be affected. However, if there is a claim made under the policy, your NCD will be dropped to 0%, regardless of your current NCD. If there is a break in ownership, most insurers will allow you to retain your NCD for a maximum of 24 months, while some insurers keep it at 12 months.

Do check with your respective insurers. Another common query is whether the rider’s NCD is transferable. In fact, your NCD is applied to you. If you switch vehicles or insurers, your NCD remains unchanged and can be transferred. If you own another vehicle (a second vehicle on top of your current one), it is non- transferable. Similarly, you cannot transfer your NCD to another person, with the exception of within your insurers, and your spouse.

 

It is vital to understand that not all motor insurance policies in the market offer you the same coverage. Furthermore, an insurance policy with a lower premium may tie you up with more restrictions, such as who can ride your motorcycle. When insurers set your premium, they will be looking at a few factors such as the model, purpose of usage, driving experience, claims history, etc. Naturally, your insurer will need to know a few relevant information before an appropriate figure can be set. With over 25 motor insurers in Singapore, potential buyers should check around before settling for a policy which is most suited to their needs.

 

 

Occasionally, riders may go on road trips on their two-wheelers to places such as Malaysia and Thailand. Similarly, it is important to purchase Travel Insurance to ensure you are protected in case of unforeseen circumstances which may crop up. For example, Etiqa motorcycle insurance will cover your bike in the Republic of Singapore, West Malaysia, as well as 50 miles (80km) of Thailand ground from the border of West Malaysia. In the event that your bike is stolen, The policy will also pay up to 50% of the value of the vehicle equivalent to its’ current market value.

If your current insurance does not have overseas coverage, it is compulsory to purchase a third party Thai insurance. It will cost you approximately RM20 for 9 days, and it only covers physical damage done to a person’s body. The insurance is available for purchase in the vicinity of border crossings into Thailand.

We hope you have a better understanding regarding motorcycle insurance. To make things easier for all our sgbike members, you can now buy motorcycle insurance online at SGBikemart.

Quote your motorcycle insurance in less than 30 sec and see the different coverages that is offered. Once you had bought your motorcycle insurance with us, log in with your account at our SGBikemart Google App, SGBikemart IOS App or at SGBikemart website.
Our new SGBikemart app features include; no more haste of having a photocopy of the motorcycle insurance certificate and the need to search for a compartment dry enough to store it at your motorbike.

 

(Image: sgbikemart member account)

Go green as the soft copy of the motorcycle insurance certificate PDF will now be stored under your registered Sgbikemart's account. Simple, quick, paperless!