Bikes are a convenient means of transport considering their price and structure. Being a two-wheeled vehicle, it can pass through crowded roads where larger vehicles get stuck. Therefore, people in India mostly purchase bikes to beat the famous Indian traffic and reach their destination quickly.
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However, buying a two-wheeler is not enough; one must also ensure safety. Therefore, the Motor Vehicles Act 1988 mandated that anyone purchasing a two-wheeler must procure a bike insurance policy. This policy will safeguard the vehicle and protect its owner from unavoidable mishaps.
Things to check before opting for a bike insurance plan
Here are 8 factors that a two-wheeler owner must consider before opting for a bike insurance policy:
1. Type of insurance
There are two types of bike insurance policy:
- Third-party
Third-party bike insurance covers the expenses incurred due to damages caused by a policy holder’s bike to a third party. These damages can be either of property or person.
- Comprehensive
A comprehensive insurance policy covers damages and losses caused to third parties and the bike owner. Therefore, most people opt for a comprehensive insurance policy for better coverage.
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However, it’s entirely an owner’s choice whether he would opt for a third-party insurance policy or a comprehensive one.
2. Compare policies online
Insurance providers facilitate online insurance purchasing options to provide better facilities to the policyholders. Buying bike insurance policies online is quick, and it saves time. Therefore, many people opt for an online option for seamless procurement and transaction.
However, several insurance companies offer various add-ons to make their offer lucrative. Consequently, one must opt for an online procedure after comparing premiums, discounts, plans, coverage inclusions, etc., offered by different insurers.
3. Premium
Premium is the monthly amount one must pay after purchasing an insurance plan. The amount of premium depends on several factors. However, comprehensive insurance offers various add-ons to enhance a policyholder’s benefits. Therefore, premiums for comprehensive insurance policies are higher for third-party policies.
While choosing an insurance policy, the insurer provides a detailed premium break-up to the policyholder. Moreover, one can use a two wheeler insurance premium calculator to check the amount before buying insurance online.
Also Read – Why You Must Buy Long-term Two-wheeler Insurance
4. IDV
IDV or Insured Declared Value is the amount an insurer provides the policyholder when the bike is damaged or stolen. It includes the market value and the depreciation charge of a bike. It also assures a higher resale value if the decided IDV is higher.
However, this is not included in the third-party insurance policy. Only a comprehensive policyholder is eligible for an IDV, as they pay a higher premium.
5. Add-ons
Add-ons are the extra perks an insurer offers to the policyholder on buying a comprehensive bike insurance policy. Though one needs to pay a huge premium for these add-ons, they are beneficial in many ways. Here are some of the add-ons an insurer provides:
- zero depreciation bike insurance
- return to invoice cover
- engine & gear-box protection cover
- consumable cover
- breakdown assistance
6. NCB
NCB or No Claim Bonus is rewarded to an insurance holder for maintaining a record of zero accident claims before the insurance policy renewal. An insurer provides a maximum 20-50% no-claim bonus to a bike owner at the end of the policy period. However, if a policyholder purchases a new bike, they can still claim this NCB.
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7. Claim process
Depending on the insurance holder’s preferences, the claim process can be online or offline. However, one must be handy with the required documents for a hassle-free settlement.
8. Claim settlement ratio of the insurer
The percentage of settled claims by an insurer within a financial year is known as the claim settlement ratio. Therefore, one must check whether the insurer is settling the existing claims of other insurance holders or not. The higher claim settlement ratio of an insurer ensures the company’s credibility.
Conclusion
Purchasing a bike and opting for insurance is essential for the safety of its owner and the vehicle. Several insurance companies are offering various insurance plans for two-wheeler. However, one must check out the above parameters before opting for an insurance plan for a better decise links:
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