Motor insurance is mandatory in India. Be it a two-wheeler or four-wheeler, all vehicles registered in the country are compulsorily required to have a vehicle insurance policy. This mandate is laid down as per the Motor Vehicles Act of 1988. When it comes to a preference of the vehicle, two-wheelers are preferred for swifter commute through traffic along with higher mileage and lower maintenance cost. But insurance is one additional responsibility to look after when buying a two-wheeler.
A two wheeler insurance policy can either be purchased offline or online. With growing digital presence, there is an increasing preference for buying it online. Apart from being a regulatory requirement, a bike insurance policy helps to safeguard any liabilities that might become due to a third person. Not only does it safeguard you against liabilities, but some types of insurance policies also protect against damages to your bike. Also, having a two-wheeler insurance for your bike helps to stay away from penalties that otherwise might burn a hole in your wallet. This article explains some of the essential things to keep in mind when you buy a two-wheeler insurance policy –
Identify the coverage required: The first step in buying a two-wheeler insurance policy is identifying how much coverage you need. Based on the type of bike you own, the coverage can be sought. Essentially there are two main types of insurance policies – third-party/liability-only plans and comprehensive policies. As the name suggests, liability-only plans cover the liabilities that might become due in an accident for injuries or property damage. On the other hand, comprehensive insurance policies cover the cost of repairs to your bike along with third-party coverage. Therefore, the bike insurance price of comprehensive plans are higher when compared to the other.
Knowing how much IDV you should select: IDV or Insured Declared Value is the maximum amount that the insurance company pays in the event of total damage to your bike. As the age of your bike increases, the depreciation component increases thereby reducing the IDV. Thus, when buying a bike insurance policy, you must consider how much IDV you will need. Since the IDV is directly proportional to the premium charged, it is important to consider its impact when buying this in your insurance coverage.
Customising your insurance coverage: If you purchase a comprehensive policy, it can be customised using add-ons riders. These riders are additional coverage over and above the standard comprehensive cover and thus bump up the premium. At such time an effective tool like two wheeler insurance premium calculator can come handy. There are various add-ons that can be opted depending on what your insurance company has to offer. Zero depreciation cover, 24X7 Roadside assistance cover, personal accident cover for pillion rider are some examples of popular add-ons that can be bought.
Opting for a reputed insurance company: Once you have finalised the policy details, make sure to check the insurance company’s reputation. Some key indicators like the claim settlement ratio, incurred claims ratio are some indicators can help you gauge the insurance company’s repute. Further, make sure to check for online reviews to know of customer feedback regarding claim experiences.
These are some points that can help you in selecting a suitable insurance policy. Remember when comparing the bike insurance policies, your decision must not be solely based on its price but considering other features too. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
