THINGS TO CONSIDER WHILE BUYING A TWO WHEELER INSURANCE POLICY

To drive your bike on Indian roads, two-wheeler insurance is mandatory as per the law. As there are many risks associated with bike driving like accidental injuries and fatalities. When we buy a bike, we take into consideration several factors like model, mileage, design and price. When purchasing a two-wheeler we take the decision after considering all the factors. Similarly, while buying two-wheeler insurance it is important to choose the right option.

 

 

Buying motor insurance is not just compulsory, riding a bike without insurance can fetch you a penalty and a hefty fine. Since third-party insurance is mandatory by law most people opt only for it, however, we need to keep in mind, insufficient insurance as per our usage is as good as having no insurance at all.Therefore, it is essential to compare bike insurance policies online and buy the one that best meets your requirements.

Factors to Consider While Buying a Two-Wheeler Insurance Policy

As comprehensive two-wheeler insurance is an all-inclusive cover, it protects against all the adversities of driving on the road. So, it is always advisable to buy comprehensive cover and not just basic third-party insurance. Like, while purchasing any other type of insurance, bike insurance too should be purchased after well-researching and by taking an informed decision. It includes evaluating your requirements as well as comparing different insurance plans.

Let’s Take a Look at the Factors to Consider While Buying a Two-Wheeler Insurance Policy

Know Your Requirement – It is important to make an assessment and know your insurance requirement and budget before checking for bike insurance plans. There are two types of two-wheeler insurance - third-party and comprehensive cover. Depending upon the usage of your two-wheeler, your expenditures as well as other liabilities, you must choose a plan that offers the right coverage for you.

Know Your Bike’s Cubic Capacity – When you are choosing your bike insurance, it is essential to be informed about your bike’s cubic capacity. As it is the decider of your bike insurance premium. So, if the cubic capacity of your bike is high then the premium on the bike insurance will also be on the higher side.

Know the Insurance Declared Value (IDV) – Putting in simple terms, Insurance Declared Value (IDV) is the current market value of a vehicle. IDV is the maximum sum insured fixed at the time of buying an insurance policy and is the amount that shall be paid when there is a total loss or theft of a two-wheeler. As a vehicle ages,the depreciation will increase, so the IDV will decrease, and as a final result, the premium shall get lower year-on-year. Hence IDV becomes one of the most important factors that decide the premium of two-wheeler insurance.

Look For Riders – When buying insurance for your bike, look for riders you can add to your bike insurance plan so as to make your coverage more exhaustive. For any new riders added, you shall have to pay an additional nominal premium. The common riders that are related to bike insurance include towing cover, zero depreciation cover or personal accident cover for the pillion rider.

Know Your Insurer – When it comes to choosing your insurance plan, look for an insurer whom you can trust and who is known for reliability. To see which is the best, look for the claim settlement ratio, claim settlement process efficiency and if the insurer system is hassle-free.

Know the Inclusions and Exclusions – While buying bike insurance, it is also important to know all the inclusions and exclusions and read all the terms and conditions of the insurance from the insurer.

Generally, a comprehensive insurance policy offers coverage, that includes;

• Theft or Burglary
• Fire Damage
• Damage due to natural calamities like flood or earthquake
• Damage due to man-made calamities like riots or vandalism
• Third-party damage
• Third-party legal liability
• Damage due to accidents

While the exclusions to bike insurance policy normally are;

• Mechanical or electrical breakdown
• Regular wear and tear
• Accident when driving under the influence of an intoxicating substance
• Damage due to driving outside the geographical limits
• Damage due to nuclear reactions

Compare the Providers – While buying insurance for a bike, it is always advisable to compare all the insurance providers for coverage, inclusion, exclusions and cost to determine which fits the best based on your requirement.

Look for Reviews – The best way to evaluate if an insurer is trustworthy or not is by reading online reviews written by verified customers. People generally share their experience with the insurance company online. If you are confused or need help making a decision, such reviews would help.

Conclusion

When you are set to purchase bike insurance keep all these things in mind essentially. Also, always renew your policy on time making sure to review your requirements while understanding whether or not the coverage meets all your requirements. So, consider all factors and choose wisely!

FAQs – Frequently Asked Questions

Let's take a look at some frequent queries on Things to Consider When Choosing a Two-Wheeler Insurance Policy.

Q1. What is a Third-Party Liability Cover?

Third Party Liability Cover is coverage when there is an accident and you hit the other person’s bike causing damage to life and property. In such a case, your insurer pays for the damages on your behalf under the third-party liability cover.

Q2. Can one replace a new vehicle on the current insurance policy?

No, a two-wheeler insurance policy is attached to the current two-wheeler registration number and hence the current insurance policy cannot be used for the new bike. In such a case, you shall need new bike insurance and if you are selling your bike then you can transfer your current insurance policy to the new bike owner.

Q3. What is zero depreciation two-wheeler insurance?

Zero-depreciation, also known as a bumper-to-bumper cover is an add-on available in standard or comprehensive two-wheeler insurance. On opting for this add-on depreciation will not be calculated on your bike and therefore, giving you the complete IDV and compensation without reducing any amount.

Q4. Does one need bike insurance to ride someone else's bike?

If you are going to ride someone else’s two-wheeler, you do not need an individual insurance policy yourself, but you need to make sure the person you are borrowing the bike from, has valid third-party bike insurance.