Why demand for cycle insurance is rising in India

Updated: February 27, 2020 12:21:33 PM

With the purchase of high-end performance cycles supported with adequate riding gears and accessories for the long-distance route, insurance in this sector is also rising.

bike insurance, motor insurance, cycle insurance, bike theft, vehicle theft, bike accident, bike theft insurance claim, cycle theft insurance claim, liable to pay compensation, police, FIR, IDV, OD insurance, TP insuranceEven for mid-range cycles, insurance is becoming a top priority to save the additional cost of unforeseen accidents that can have a toll on finances.

There are a few joys in life that never fade away; one of them is the joy of reliving your memories and creating new ones along the way. One of the memories to treasure belongs to one’s childhood, where the people, as children, showed immense enthusiasm to ride a cool cycle. The memory still breathes just the same in present times as now they opt for the same mode of commute to go green while simultaneously maintaining their health. Combating traffic and lifestyle diseases, a cycle not only helps one to work out while commuting to their destination but also reduces the carbon footprint on the earth.

De-escalating the use of fuel and encouraging environment-friendly commute, cycles are also introducing a pocket-friendly, fun way to commute from one destination to another, helping one avoid the parking hassles and other routine-commute expenses and concerns. Corporates are also opting for premium cycles to ease their commute and to maintain a healthy lifestyle. Supporting the same, a recent study by TERI estimated that if bicycles substitute two-and four-wheelers used for short-distance trips in India, it can result in an annual benefit of Rs. 1.8 trillion.

With people becoming health-conscious and being aware of various ways to stay fit, the sales of cycles are on a rise and so is the need to insure them. Having long-working hours and hectic schedules hardly leave any time with the professional to balance their health routines and maintain a fitter lifestyle, thus, bringing a significant change in the mode of commute and insuring it to go a long way will serve to be helpful for the fitness-enthusiasts as well the ones seeking a healthier lifestyle.

With the purchase of high-end performance cycles supported with adequate riding gears and accessories for the long-distance route, it is imperative to opt for cycle insurance as it will support the owner in times of any mishappenings or any such concerns. Even for mid-range cycles, insurance is becoming a top priority to save the additional cost of unforeseen accidents that can have a toll on finances.

Along with metropolitan cities, Tier 1 and Tier 2 cities are also contributing significantly to the sales of premium cycles and thus helping the sector to evolve exponentially along with upping the sales of cycle insurances. Buying insurance has often been tagged as a complex process; however, with the growth of customer-friendly insurance companies, the scenario is undoubtedly changing.

With the latest technology and advancements, new-age startups are changing the face of the insurance where they are becoming more client-centric, catering to the customers’ needs passionately and addressing their concerns while being accessible to all and reducing the adverse impact of future accidents and mishappenings. The non-life insurance market has grown by more than 750% in the last 15 years, exploding from a figure of 2.6 billion USD in FY02 to 19.8 billion USD in FY17. The number of policies issued, too, has shot up aggressively over the past decade – growing at nearly 250%, from 65.55 million policies in FY08 to 161.17 million in FY17.

With the ease of purchasing bite-sized insurance, the need to opt for cycle-insurances is also becoming prominent by the passing of the day. Bicycles are serving as an asset and hence are advised to be insured with the apt policy, benefitting the customer in the best way possible. Making its own place in the market, cycle insurances are on a rise and very deservingly so.

by, Rohan Kumar, Co-founder & Chief Executive Officer, Toffee Insurance

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