How Bike Trackers Have Reduced Theft Claims in Cities

What are Bike Trackers and Anti-Theft Devices?

Bike trackers and anti-theft devices are different types of security tools that can be discreetly attached to the vehicle to monitor the live location, send alarms and notifications about unauthorised usage.

1. A bike tracker is primarily a GPS-enabled device that tracks the live location of the vehicle, which can be monitored through a smartphone.
2. Anti-theft devices include various security tools, such as alarm systems, electronic sensors, disc brake locks, handle locks, and engine immobilisers.

Such devices have become widely popular in India, especially after the rise in the number of bike thefts.

Did You Know that the Automotive Research Association of India maintains a list of certified GPS trackers and Anti-theft devices that are typically recommended for their effectiveness and acceptance among insurance companies?

How do Such Devices Reduce Bike Insurance Claims?

Bike trackers and anti-theft devices have had a positive impact on reducing claims under motor insurance significantly. Here’s how:

Enabling Faster Recovery

Installing authorised bike trackers enables faster recovery in case of vehicle theft. These GPS-enabled devices are equipped to track the live location of the bike, which can be easily monitored and detected on the owner's smartphone or any other digital device. Since these trackers have increased bike recovery, claims under motor insurance also reduce.

Did you know that after the drastic rise of bike theft in Bangalore, experts suggested that GPS trackers are one of the most effective steps that a bike owner can take to improve recovery in case of theft? 2

Lower Claim Severity

GPS-equipped bikes have a higher chance of being recovered without severe damage or stolen parts. Under such conditions, even if the insured raises a claim, the insurance payouts are lower since the insurer does not have to pay the complete IDV.

What is IDV? IDV, or insured declared value, is the maximum amount the insurer agrees to pay if the vehicle is stolen or damaged beyond repair.

Deterrence and Psychological Effect

Two-wheelers that are visibly equipped with trackers or anti-theft devices become less appealing for thieves simply because of the fear of getting identified. The deterrence or psychological impact of such devices can also help reduce the chances of bike theft and eventually claims under motor insurance.

Role of Insurance Companies

Although there isn’t a mandate to install such security devices, many insurance companies offer discounts or charge lower premiums for vehicles that have such devices installed. This not only helps in offering financial incentives but also encourages device adoption amongst vehicle owners. With an acceleration in security device adoption, insurance companies often notice a reduction in claims.

Bike Trackers: Challenges and Limitations You Should Know

Bike Trackers and anti-theft devices have several benefits that, as a vehicle owner, you must not ignore; however, there are certain challenges and limitations that you must be mindful of:

Device Tampering

There is a risk of device tampering if thieves can easily identify a security device installed on the vehicle. Additionally, in cases where such security devices are not installed accurately, their effectiveness falls.

Incompatibility with Vehicles

Indian states are packed with old-model two-wheelers that are often not compatible with installing bike trackers or anti-theft devices.

Delayed Reporting and Recovery

Even vehicles equipped with such security devices may still experience delays in reporting and recovery, either by the vehicle owner or the police authorities.

Summing Up

Purchasing your dream bike can bring an unparalleled amount of happiness. When you have spent your hard-earned money, it is important to ensure its safety at all times. Bike trackers and anti-theft devices are not just an additional accessory, but a crucial investment that you make to protect your vehicle against theft. The rise of such devices has not only benefited vehicle owners but also insurance companies, as they receive fewer claims from insurance holders.

If you are looking for a bike insurance policy that provides you with comprehensive coverage and financial incentives for installing security devices in your vehicle, look no further and trust Jio Insurance Broking. It is a platform where you can explore, compare and purchase the best motor insurance plan.