Congratulations! You have got a new bike. Your motorcycle has everything you want with the perfect mileage, engine capacity, model, looks, etc.
Many of us do thorough research and go the extra mile to choose what's best for us. If we can put effort into selecting the best two-wheeler, why can’t we put a little more effort into protecting that bike? You got it right! We are talking about buying an insurance policy for your new friend.
If you are a newbie or just not friendly with the world of insurance, this article is for you! We have compiled five major things to keep in mind before purchasing bike insurance.
So, let’s get started!
5 Essential Things to Consider Before Buying a Two-wheeler Insurance Policy
1. Policy Type
Before choosing an insurance plan, you must first decide the type of cover you are looking for. Majorly, two types of bike insurance policies can be seen in the market.
A comprehensive cover protects you against damages to your own two-wheeler and a third party. On the other hand, a third-party liability plan shields you only against the loss to the third party. It is crucial to know that the Indian Government has made it mandatory for two-wheeler owners to have a third-party insurance cover.
Apart from the above two, another type of plan is prevailing in the market, i.e., a standalone own-damage bike insurance policy. As the name suggests, this plan provides coverage against the damage loss to your own bike.
You can choose among the above based on your requirements and the damage cover. Experts recommend going for the comprehensive cover as it offers better coverage and reduces your financial burden to a great extent in case of any mishappening.
Did You Know?
You can customise your bike insurance policy according to your needs with add-ons! A policy is impacted by factors like the manufacturing year, depreciation terms, model, location, engine capacity, etc. Insurance plans usually do not cover the engine of your two-wheelers, but you may get it covered by choosing an engine protection add-on. Likewise, different add-ons provide coverage against various uncertain events.
2. Coverage and Exclusions
It is highly important to go through the terms of an insurance policy to know about its inclusions and exclusions. It helps to carry out the claim process smoothly.
A comprehensive policy usually protects against the following incidents:
- Damage due to accidents, fire, strikes, riots, terrorist activity, etc.
- Vehicle theft.
- Third-party-related damages, casualties & legal liabilities.
- Loss because of natural calamities such as earthquake
If the damage type is not covered in your policy, the insurer will reject your claim. Before filing a claim, you must check the two-wheeler insurance coverage by reviewing your policy terms.
Some situations do not allow you to raise a claim. These are called ‘exclusions’, i.e., the instances that are not covered under a policy. Hence, knowledge of exclusions is of utmost importance when buying bike insurance. Below is a list of exclusions commonly seen in the insurance market.
- Depreciation of your bike.
- Regular wear and tear.
- Loss due to illegal driving, e.g., driving without a license or drinking and driving.
- Accidental losses that occur outside of the regional limits.
- Mechanical or electrical breakdown.
- Other exclusions as mentioned in the policy.
3. The Credibility of the Insurer and Claim Settlement Ratio
Covering your two-wheeler with a reliable insurance provider is helpful while raising a two-wheeler insurance claim. Your mental peace will be shattered if the services provided by your insurer are not satisfactory. Hence, before buying bike insurance, learn about the insurer's credibility. You can take the help of social handles or online reviews posted by the current customers of any insurer and learn about their level of satisfaction.
Also, know about the claim settlement ratio (CSR), which shows how an insurer manages the claims raised by its customers. It is calculated as below:
The ratio of claims settled during a financial year/ Total number of claims received during a financial year
4. Network of Partner Garages
Filing an bike insurance claim and getting your bike fixed will be an easier job if your insurance carrier offers multiple two-wheeler insurance cashless garages. This calls for the need to double-check the number of network garages covered by the insurance, as more garages will give you more options.
5. Premium Amount
The fees charged to avail of bike insurance benefits are known as ‘premiums’. The high premium cost is one of the major reasons for not buying insurance in India. Bear in mind that insurance is a necessity. Hence, it is not advisable to consider the 'premium' as the sole factor in choosing an insurance plan.
There are also other factors to look at before making a buying decision for your bike insurance. You may consider the customer service and support, no-claim bonus, add-ons, term of the policy, insured declared value (IDV), etc.
A bike insurance coverage is not just crucial to meet legal requirements but also to cover your two-wheeler against any mishappening. We recommend you choose a policy based on your preferences and not rely on any insurance agent. With the help of this article, you can buy your policy separately without a dealer.
So, what are you waiting for? For detailed and comprehensive knowledge of various bike insurance terms and options, visit Paytm Insurance.
Also read -