Why demand for cycle insurance is rising in India
With a rise in demand for general insurance products in India, like home insurance India, there has also been a consequent rise in insurance demand for other general insurance products. One such product that has seen a rise in demand lately is cycle insurance.
In recent years, India has experienced a significant rise in the number of individuals adopting cycling as a method of transportation, physical activity, or leisure pursuit. This could be attributed to various factors, such as increased awareness of the advantages of cycling, mounting apprehension over ecological sustainability, and the escalating prominence of cycling as a competitive endeavour. A simultaneous consequence of this has been a rise in demand for cycle insurance.
In this blog, we will discuss in detail the factors that have propelled the rise of cycle insurance in India.
A brief on cycle insurance
Cycle insurance, like any other general insurance, such as home insurance India, is an important financial instrument. It provides coverage against theft, accidental damage, and third-party liability. It can also cover the cost of repair or replacement of the bicycle in case of damage or theft, making it a valuable asset for anyone who owns an expensive bicycle.
Factors behind the increasing demand for cycle insurance in India
Some of the major factors that have led to the increasing demand for cycle insurance in India are discussed below-
- Rising demand for cycles: Of late, India has seen a rising demand for cycles. An important factor in this is increasing health consciousness amongst people and a yearning to look fitter and better. Rising lifestyle diseases have added to the demand.
Rising traffic has further made it a convenient mode to commute. Not only does cycling help combat lifestyle diseases, but it also helps deal with traffic issues. Increasing concerns about air pollution and environmental sustainability have made it a sustainable alternative. Furthermore, the COVID-19 pandemic has spurred interest in cycling as more and more people are looking for ways to stay active and avoid crowded spaces.
An important consequence of this rising demand for cycles is a rise in demand for cycle insurance.
- To cushion the risks of accidents: In India, accidents are extremely common, and cyclists are particularly vulnerable. As per data from the Ministry of Road Transport and Highways, there were over 4,50,000 accidents in 2021 (Road Accidents in India 2021, Ministry of Road Transport and Highways). A significant number of these accidents involved cyclists. This has led to a significant interest in cycle insurance, as it can cover not only the cost of repairs but also provide coverage against third-party liabilities.
- Risk of thefts: Interestingly bicycles are one of the most popular targets of theft in India, probably because of their easy movability and relatively much lighter weight as compared to other vehicles. Furthermore, since bicycles are often left unattended in public, their theft is a common daily occurrence. Cycle insurance is an important instrument to stay protected against such thefts.
- Cycle as an asset: Cycles are no longer limited to basic models, merely acting as a tool of transportation. They come in various different high-end models and styles, thereby claiming as much importance as any other valuable asset in households. Since home insurance India does not cover cycles under its purview, demand for cycle insurance has picked up as the cost of cycles these days is no less than that of any valuable asset.
- Availability of comprehensive insurance products: The rising interest in cycle insurance has led to the introduction of comprehensive cycle insurance products by insurance providers in India. These cover risks ranging from accidents, and thefts to third-party liabilities. Apart from providing wide coverage, the insurance companies are also coming up with customised cycle insurance plans to meet the specific needs and requirements of the cyclists.
- Increased availability of insurance in general especially online insurance: There is a rise in awareness and an increase in the availability of insurance products in India. This is especially true because of a rise in the availability of online insurance products in India. Online insurance has made insurance both accessible and affordable. It is also far more convenient and efficient to purchase insurance products online and renew these policies.
- Improved standard of living: With the rise in disposable incomes in India, there is a greater appreciation of the importance of protecting one's assets and financial well-being. As a result, more people are taking out insurance policies for a range of products, including home insurance India, car insurance, and now cycle insurance.
- Increase in cycle tourism: India’s rich cultural heritage is well known. Tourism has seen a rise in the country. The government has also been promoting tourism. Hence, cycling tourism has seen a rise in prominence, which has led to an increase in the number of people buying and renting bicycles. Cycle insurance is an important safety net for these tourists, protecting them against loss or damage to bicycles.
Benefits of cycle insurance
Listed below are some of the major benefits of purchasing a cycle insurance plan:
- It is an important tool for financial protection in case of theft, accidental damage, or third-party liability.
- Cycle insurance also gives peace of mind by providing protection in case of any unforeseen events.
- Cycle insurance is relatively affordable, making it desirable and effective for protecting your investment in cycles, especially the high-end models.
General insurance in India, like home insurance India, has seen rising demand, and cycle insurance is no exception. While it does cover the contents of your home only under certain conditions outlined in the policy document. If you are a cyclist and treasure your asset, a home insurance many not be adequate for you. This is where cycle insurance comes into play. If you are a bicycle owner, ensure that you avail yourself of the protection of cycle insurance for your vehicle.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
