The moment you ride your new bike is an absolute pleasure, and the joy of it is unrivaled. However, with a bike comes the responsibility of riding safely.
Searching for the perfect two-wheeler insurance policy requires time and effort. If you're purchasing one for the first time, it can even seem overwhelming. While there are several tools out there, like a bike insurance calculator, to help you in your quest, it is important to evaluate the policy based on certain criteria. The criteria pertaining to the coverage, premium, and various other features of bike insurance are important for a policyholder to understand.
To help you select the correct option, we have curated a list of such crucial aspects to keep in mind. So, let's get started!
The Type of Policy
There are three motorcycle insurance policies: third-party liability insurance, comprehensive bike insurance, and standalone own damage insurance.
Third-party bike insurance is mandatory by law. It protects you from financial liability should your insured two-wheeler cause damage to a third party's vehicle, property, or individual in an accident.
A standalone own damage bike insurance policy will protect you against vehicle damages due to an accident or natural or man-made disasters.
Comprehensive bike insurance online policy combines the two, covering you for harm caused to your vehicle by natural or man-made calamities and third-party costs incurred due to an accident.
Depending on your requirements, you need to pick the policy type that suits you the best.
Claim Settlement Process
Bike insurance claims mean notifying your insurance company about an incident to claim compensation or other benefits. It is crucial to tell your insurer immediately about any damage or loss to ensure that you receive compensation. You need to check the steps involved in both cashless and reimbursement claim settlement processes.
Claim Settlement Ratio
The insurance company's claim settlement ratio (CSR) measures how likely it will settle your two-wheeler insurance claim. CSR is the ratio between the total claims the bike insurance company has settled and the number of claims they have received during a financial year.
Companies with a higher claim settlement ratio will likely reimburse you for your expenses quickly. Typically, a claim ratio of between 85-95% is good.
Partner Garages Network
If your insurance carrier provides numerous cashless garage-based support, getting your motorcycle repaired during a crash will be much easier. Hence, it's essential to determine the number of certified garage outlets tied up with the insurer. The greater the number of garages, the more choices you'll have for cashless repairs.
Premium
The amount you pay to purchase motorcycle insurance is known as premiums. This amount is based on numerous elements such as the insured declared value (IDV), policy tenure, no-claim bonus, etc.
Exclusions from the Policy
To ensure your motorcycle is protected in the event of an accident, it is essential to be aware of the exclusions too. We will now discuss what may not be covered under your two-wheeler insurance.
Speeding
Insurance for two-wheelers does not cover damages or losses caused by speeding.
Sharing a Bike with Someone Else
The insurance company will pay for repairs if the owner causes an accident. However, it won't cover if the motorcycle is lent.
Value Reduction
Two-wheeler insurance doesn't cover value loss due to wear and tear.
Loss or Misplacement of Keys
The insurance company won't be held responsible if you lose your keys or leave them behind on your two-wheeler. For that, you will need to buy a key loss/replacement add-on for an extra premium.
Unauthorised Riders are Not Covered
You will need to list the names of all persons who may be riding the two-wheeler. This is important when you purchase the insurance policy. The company will not cover any damage or loss when unauthorised riders use the two-wheeler.
Valid Licence
Two-wheeler insurance does not cover damage or loss that results from accidents caused by minors or those who do not have a valid driving licence.
Other Exclusions
- Two-wheeler insurance doesn't cover damage or loss caused by drunk driving or drugs.
- It does not cover damage or loss from radioactive or nuclear-related activities.
- A two-wheeler insurance policy does not cover injuries to riders or damages to bikes caused by riding without helmets.
Checklist to Follow When Purchasing Bike Insurance
If you're purchasing online insurance policies, keep this checklist handy.
Assess Your Needs
Before you head out to buy an insurance policy, list down your requirements. Knowing what type of insurance you can afford will allow you to purchase a policy that fits your spending budget.
Choose the Right Bike Policy
Once you have defined your needs, begin looking for a policy that will be most effective for you. While the Motor Vehicles Act, 1988, requires third-party insurance, the coverage offered by this type is limited. Therefore, most people recommend a comprehensive insurance policy that offers all-around security.
Read more - Tips to Choose the Most Suitable Two-wheeler Insurance in India
Select the Right Insurer
Choose your insurance from a reputable insurance company. You can evaluate the quality of its services and reputation in the marketplace, its claim settlement ratio, etc. You can also get details about it by going to social networks and reviewing customer reviews on the internet.
Opt for Appropriate Add-ons
Bike insurance add-ons help provide better coverage for your two-wheeler. Some of the optional riders you can choose from are:
- Zero Depreciation/Nil Decreasing: You'll get the total compensation for the claim without any depreciation.
- Engine Protector Cover: Engine protection bike insurance add on covers any cost incurred for engine or component repairs.
- Consumables Cover: Consumable bike insurance add on covers the cost of consumables, such as nuts, bolts, oil, etc., that are replaced, repaired, or replenished in the event of loss or accidents.
- Return to Invoice: Return to invoice bike insurance add on cover fills in the gap between the insured declared value (IDV) and the value of the vehicle's Invoice. In simple terms, you can claim the total amount of the loss in the event of theft.
Conclusion
Buying motorcycle insurance is essential for financial safety if you face accidental or other covered damages. When selecting the plan, you must read the policy document carefully to avoid any misunderstanding or regret in the future. Any ambiguity regarding the abovementioned factors may lead you to pick the wrong insurance policy.
Consider Paytm Insurance as your destination for your two-wheeler insurance policy. It offers policies by several top insurance providers in India.
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