Bad road conditions and errant riders make third-party bike insurance indispensable for Indian two-wheeler owners. But it is advised to buy a comprehensive insurance policy that comes with the mandatory third-party cover besides protection against damage or loss caused to you and your vehicle.
For first-time buyers, the countless service providers, differing terms, and various offerings might seem overwhelming. However, buying your first bike insurance policy can be a breeze with intuitive comparison sites, seamless digital processes, and absolutely no paperwork. This article should provide a comprehensive guide to get you started.
Bike insurance offerings come in different shapes and sizes. To get the most out of this guide, it's best to become familiar with the following terms and their meanings.
Third-party Coverage
Third-party insurance policies cover any damages caused to a third party, i.e. a person who is not travelling on your bike. This person can be a pedestrian or someone travelling in another vehicle. This is a basic policy that is made mandatory by the law in India.
Own Damage Coverage
The standalone own damage bike insurance policy covers any damages caused to your vehicle in the event of an accident. Depending on individual policy terms, the cover can extend beyond road accidents to include fire, earthquakes and other natural calamities.
Comprehensive Insurance Coverage
Comprehensive bike insurance includes both third-party liabilities and own damage coverage. This is the most recommended policy for riders, given its far-reaching coverage, despite the high upfront cost.
Choosing the Right Insurance Policy
Deciding on the Right Insurer
The insurance industry has mushroomed over the past few years. With differing terms, offers and pricing, it often gets tedious to choose a policy that best suits your requirements.
Ideally, the decision must be based on the best value coupled with the lowest price, and insurance comparison sites are the best place to do so.
Insured Declared Value (IDV)
IDV in bike insurance is the maximum amount a company gives as a claim. It is the difference in the depreciation of the bike's market value from its selling price.
Higher IDV comes with a higher premium. You should compare the IDVs offered by different companies and choose the insurer that provides the highest.
Be Aware of the Type of Policy Coverage Offered
While third-party coverage is mandatory, other options are customisable. You should be cautious enough to choose the policy that best suits your needs.
Select add-ons, if needed. Add-on options include no-claim bonus protection, engine cover, roadside assistance cover, etc. You can add these to either a standalone own damage plan or a comprehensive plan.
It is important to select an insurer that provides add-on benefits without a substantial increase in the premium amount.
Look for the Garages Covered
Every insurance company has associations with different garages. You should choose a company with a large network of two wheeler insurance cashless garages so that you can choose the suitable one for repairs should a need arise.
No-claim Bonus
No-claim bonus refers to discounts on the premium amount that an bike insurance company offers to those customers who don't claim in a policy year. It is considered a reward that is given to the owner of the vehicle for safe riding.
Read the Policy Documents
You must thoroughly study the policy documents before buying bike insurance. You should be well aware of the various legal clauses included in it.
This is necessary to avoid any legal complications in the future. You should agree to buy the policy only if you are satisfied with the terms and conditions of the insurer.
Getting the Best Possible Discounts
There are different ways to get a discount on the premium. Maintaining a good riding record with nil or negligible claims provides you with a no-claim bonus that reduces your premium up to 50%.
Read more - How to Calculate NCB for Two Wheeler Insurance?
Opting out of unwanted add-ons would further reduce the premium amount, along with timely renewals. A high voluntary deductible, i.e., the claim amount paid by the owner, results in premium discounts, but this, of course, is not that advisable.
A first-time insurance purchaser should also be aware of the scenarios where claims can be denied.
- Damages caused due to driving under the influence of alcohol or drugs are a strong reason for claims denial.
- Claims would be denied for an inactive or lapsed policy.
- Claims would not be entertained for wear and tear due to the natural aging of the bike.
- Accidents caused while driving without proper legal documents, like a valid driver’s license or vehicle registration certificate, are also valid grounds for claims denial.
How to File a Bike Insurance Claim?
In case of theft or an accident, contact the bike insurance company immediately. You will need to submit an FIR from the concerned police station (in case of theft and third-party damage), a copy of your driving license, the vehicle registration certificate, and other relevant documents as required by the insurer.
The insurance company would then estimate the damages and determine the suitable bike insurance claim amount with the help of a surveyor who comes to inspect your vehicle.
Conclusion
Bike insurance is a mandatory legal document that secures you against any monetary loss incurred by an accident or any other unfortunate event. But the availability of numerous alternatives makes it difficult for the first-timers, in particular, to choose the best policy. The tips advised in this article would, however, help you figure out the same.
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