If you have spent a lot of time choosing the best bike, it is only sensible to choose the best insurance for your bike. Here are some factors that will help you choose the best policy. Also, here are a few mistakes that can be easily avoided.
There is a plethora of options when it comes to choosing a bike in the country. As manufacturers launch new models and revamp existing ones, there has never been a better time to buy a bike. And given all-time high fuel prices, bikes make for an affordable commuting option. As you choose your next bike, it is equally important to opt for the right bike insurance policy since it can be a differentiating factor.
When you buy a new bike, it is not an option to buy bike insurance along with it. In fact, the law mandates that you do so. The Motor Vehicles Act of 1988, to be precise. And failing to secure a policy will leave you vulnerable to a lot of financial risks.
From the onset, you are liable to pay a hefty fine to the traffic police department if you are caught driving without a policy. You are also liable to pay for damages or injuries out of your pockets during an accident. A comprehensive policy for your bike can save you from a lot of these turmoils. By following a few simple steps, you can choose the best insurance for your bike.
Top factors to consider while choosing the best two-wheeler insurance plan:
The following factors will help you pick a policy that your wallet and bike both like.
- Understanding your needs and coverage:
Spending a few minutes to assess your needs and requirements can make the process of buying the policy more effective. Depending on your expected usage and liabilities, you can choose the right type of policy. It is always a good idea to be overinsured than underinsured. Thus, you need to decide accordingly about the coverage.
- Selecting the type of insurance:
When you set out to buy a policy, there are different choices from which you can choose. Following are the three types of policies that you can buy for your bike.
- Third-party liability,
- Comprehensive, and
- Standalone own damage
A third-party liability policy is a fundamental insurance policy that protects you and your finances in the event of an accident. If the accident involves third parties and they have incurred injuries or damages, the policy will cover those expenses. It even covers expenses related to the death of a third party. Due to the limited coverage on offer, it is the most affordable insurance on the list.
Comprehensive insurance bike are the next category. As the name might give away a bit, it offers complete coverage for your bike. Apart from the perks of a third-party liability policy, it also covers damages to your bike. It even allows you to choose add-ons to make your policy even more effective. Since it offers the maximum coverage, it is slightly more expensive than the other two policy types.
Standalone own damage coverage primarily protects your bike from any mishaps or accidents. If you already have opted for a long-term third-party policy, you can choose a standalone own damage plan to complement it and provide a rounded coverage.
- Repair garages:
Insurance companies build partnerships with garages, and these are known as network garages. If your bike is damaged and needs repair, you can visit any of these garages. Should you file for a claim, your insurance provider will settle the bills directly with the garage. Thereby, protecting you from spending any money on the repair. Checking the number of network garages of an insurance provider must be one of your selection criteria. A higher number is advisable.
The IDV or insured declared value of a bike is the current market representation of the value of your bike. And insurers consider it to offer you a policy. In the event of an accident where the bike cannot be repaired anymore, or it is stolen, IDV is the maximum compensation that you will receive.
Thus, selecting the right IDV is important since you can play around with the IDV. Selecting a higher IDV will result in a higher policy premium and vice versa. While choosing a low IDV will result in a lower policy premium, it can have adverse effects later.
Comprehensive plans as well as standalone own-damage plans, offer policyholders add-ons. These are additional coverage for your bike that you can plug into the policy. By paying a small premium, you can increase the capabilities of your insurance by a considerable margin. Some of the most popular add-ons include zero depreciation cover, emergency assistance cover, etc.
- Exclusion list:
Insurance policies usually have an exclusion list. It is essentially all the scenarios where you cannot claim the policy. Before you decide to buy a bike insurance policy, it is advisable to go through the exclusions list. It will help you prevent any unwanted claim rejections.
The claim settlement ratio is an indication of how an insurance company is performing as far as claims are concerned. The ratio indicates the total number of cases that an insurance provider has settled versus the total number of claims that it has resolved. A higher CSR indicates that the provider is more likely to settle a claim.
Apart from the CSR of the insurance provider, looking at the claim settlement process can be fruitful as well as it will help you understand the process and its simplicity or complexity.
Some avoidable mistakes
Following are some avoidable mistakes when it comes to comprehensive insurance bike owners buy. Together with the above factors, you can buy a robust policy.
- It is of paramount importance that you enter all the details accurately while buying bike insurance policies, right from basics, such as name and contact information, to details of the bike, such as engine and chassis number. Ensure that you check these details a couple of times at least before submitting. Also, it is a good practice to select a nominee for the policy.
- Opting for the most affordable policy might not always be a sensible decision. A policy with a low premium can, at times, cut corners or leave your bike underinsured. Also, while adjusting the IDV, it is not recommended to set the lowest allowed value for a low premium. While it might save you a few rupees, it can have detrimental effects if the bike is stolen or damaged beyond repair.
- Do not forget to claim the NCB discount. Insurance providers offer it as a reward for good riding habits. Claiming the discount will help you to cut down your policy renewal premiums by a considerable margin.
The above factors will help you to zero down policies and even insurance providers. You can then choose a policy or insurer that offers the best plan. Knowing a bit more about bike insurance policies can go a long way in aiding you choose the best plan out there. And it is quite important to go through the exclusion list to avoid any sort of claim rejections.
The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.