Purchasing a bike involves significant decisions, and securing it with the right insurance is crucial. In India, two primary types of bike insurance exist: comprehensive and third-party. While the former covers your bike comprehensively, the latter safeguards you from liabilities towards third parties. Understanding these insurance options is vital before buying a motorcycle on Equated Monthly Installments (EMI).
Step 1: Choosing The Right Bike
Select a bike that aligns with your preferences, considering features, cost, brand reputation, and maintenance—factor in customer reviews, resale value, and mileage to make an informed decision.
Step 2: Opting For Bike Loan
If paying upfront is challenging, consider bike loans from financial institutions. Apply in-person or online with required documents like proof of identity, address, and income.
Step 3: EMI Calculation
Use an EMI calculator to determine monthly payments based on the principal amount, interest rate, and loan duration. This ensures you understand the financial commitment before finalising the loan.
Step 4: Completing Requirements
After loan approval, gather all required documents and thoroughly read the terms and conditions to avoid future complications.
Step 5: Choosing Bike Insurance
Select third-party bike insurance, mandatory for all bikes on Indian roads, covering third-party liabilities like property damage, injury, and demise. Claims are subject to terms and conditions set forth under the motor insurance policy. *
Step 6: Opting For Comprehensive Insurance
Consider comprehensive bike insurance, extending protection to your bike against theft, natural disasters, and accidents, in addition to third-party coverage. *
Step 7: Tailoring Coverage
Enhance protection by adding riders such as engine protection cover or zero depreciation cover to your insurance policy. *
Step 8: Purchasing Insurance
After reviewing the policy document carefully, buy insurance through an agent or the insurer’s website.
Step 9: Timely EMI Payments
Ensure punctual EMI payments post-bike purchase to avoid penalties and maintain a positive credit score.
See also: Exploring CAMMUS Direct Drive Technology
Benefits Of EMI For Bike Loan
- Financial Planning Simplicity: EMI facilitates budgeting with fixed monthly payments, aiding those with consistent incomes to plan.
- Inclusive Insurance: Bike loans often include comprehensive or third-party insurance, meeting legal requirements and safeguarding your investment.
- Affordable Third-Party Insurance: Third-party insurance, typically included, provides cost-effective coverage for liabilities resulting from your bike’s impact on others.
- Affordability And Ownership: EMI options make bike ownership feasible, allowing comparison of loan plans with competitive interest rates.
- Credit Score Improvement: Consistent, timely EMI payments contribute to a positive credit history, enhancing future credit opportunities.
- Flexible Repayment Terms: EMI plans offer flexibility in choosing repayment durations based on individual financial situations.
Buying a bike on EMI is viable for those seeking affordability and convenience. It enables planned budgeting and includes essential insurance coverage, ensuring financial security. Make sure you carry out the process of bike insurance renewalon time. Claims are subject to terms and conditions set forth under the motor insurance policy. *
If you need more clarification about your current coverage, you can easily find out how to check your bike insurance status online or through your insurance provider’s customer service.
Understanding bike insurance and EMI options is crucial for a smooth bike purchase in India. Whether choosing comprehensive or third-party insurance, these options provide protection. Navigating EMI details helps make informed decisions, ensuring a seamless transition to bike ownership and peace of mind during rides.
*Standard T&C Apply
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
