Suggested : 5 Valuable Tips to Consider While Buying the Best Bike Insurance Policy
The secret to buying the right two-wheeler insurance policy is – understand your needs, be aware of the available options, identify the best, and enjoy peace of mind on the roads. Two-wheelers – bikes and scooters – are the most popular modes of transport in India. Easy navigation on congested roads, not having to worry about finding a parking space are some of the perks of owning a two-wheeler.
With that said, two-wheeler accidents are far more frequent compared to all other modes of transport. As per the Indian Motor Vehicles Act of 1988, it’s mandatory for all two-wheelers plying on Indian roads to be insured.
With dozens of insurers and numerous two-wheeler insurance policies, zeroing in on the right policy that fits your need is a challenge. Worry not, here in this guide; we walk you through the process of selecting the best two-wheeler insurance that perfectly fits your need.
- Identify your Coverage Requirements
Two-wheeler insurance policies in India are classified into two types:
- Third-party liability insurance – Offers protection for third-party property and third-party damages by your bike in an accident. It also provides personal accident cover to the bike owner but does not offer any coverage for the damages incurred to your bike.
- Comprehensive cover – As the name implies, this cover offers complete financial protection for damages incurred by your bike, as well as third-party property and third-parties.
As per the IMV (Indian Motor Vehicle) act of 1988, all two-wheeler owners must have at least third-party liability insurance. Choose the type of cover that suits your need. For instance, if you can pay for the repair/replacement costs for your bike out of your pocket, then you can opt for third-party liability cover. On the other hand, if you require complete financial protection for your bike against natural calamities, thefts, and damages incurred due to accidents, then the comprehensive cover is the better choice for you.
- Know the Factors that Affect your Premium
Just like with all other insurance plans, the premium varies from one policyholder to another. When it comes to two-wheeler insurance, the premium depends on several factors like:
- Cubic Capacity of your Bike – Higher the CC, the larger is your premium
- IDV (Insured Declared Value) – This is the current market value of your bike. The IDV of the bike decreases with depreciation. Hence your premium decreases year-on-year.
- NCB (No Claim Bonus) – It’s a perk offered for your good riding habits. If you have made no claims during the previous year, you enjoy an NCB bonus. The NCB bonus is cumulative and keeps on increasing year-after-year, provided you don’t make any claims. Higher the NCB, lower is the premium.
- Analyse the Add-on Covers
Most insurers offer an array of optional add-on covers that extend the coverage of your bike. You can choose add-on covers based on your requirements. Some of the common add-on covers include:
- Roadside assistance – With this cover, the insurer dispatches a mechanic to help you out if your bike breaks down during your rides.
- Personal accident cover for pillion riders – The third-party insurance cover offers personal accident coverage only for the bike rider and not the pillion rider. With this add-on cover, your pillion rider is protected, as well.
- Zero depreciation cover – With this cover, you can enjoy the full claim amount sans any depreciation.
Besides these, there are several other add-on covers like towing cover, accessories cover, etc. Understand the different add-ons available and choose the right ones that fit your requirements.
- Compare the Features offered by Insurance Providers
Insurance providers offer a wide array of features to attract customers. Make sure to go through all the features offered, compare it with your needs, and choose the right insurer who ticks all your requirements.
Some of the distinct features include:
- Cashless repair at network garages (check if the insurer offers a garage in your neighbourhood/city)
- Zero-hassle online claims
- Cab vouchers for daily commutes while your bike is in the garage
- Instant claim settlements for minor damages
- Mobile app for easy renewal of your insurance policy
- Finally, Compare Premium Costs
Once you have shortlisted bike insurance policies and insurance providers based on your requirements, the final step is to compare premium costs. Get price quotes from your preferred insurers and choose the right provider who offers you the best value at the most affordable prices.
Use the Five Factors listed above to choose the Right Two-Wheeler Insurance that Fits your Needs
Always make sure to read the policy document carefully and renew your policy on time. Make sure to go through all these five factors during policy renewal as well, as your requirements could have changed over time.
Choose the right two-wheeler insurance, stay protected, and enjoy peace of mind.
