Buying your new dream bike or scooter is certainly exciting and fulfilling. However, it doesn’t just involve arranging for finances; it comes with a few more responsibilities. One of these is to obtain two-wheeler insurance to comply with Indian law.
A comprehensive bike insurance policy not only helps you abide by the law but also safeguards your vehicle against any mishaps, covering the expenses of damage and loss from an incident in the future. As good as the bike insurance benefits may sound, you can make the right call only after comparing various options in terms of coverage, premium payable, value-added features, flexibility, etc. Not doing the same could make you curse later.
In this post, we discuss a few significant pointers you should keep in mind when getting insurance cover for your two-wheeler.
Extent of Coverage
Earlier, you had an option to choose from an annual or long-term policy for your new two-wheeler. However, effective from 2018, all new bikes must be covered under a third-party bike insurance policy of five years.
The IRDAI standardises the rates for these policies, which means they are the same across insurers. While you need to pay the premium for the entire period upfront, you are protected against price increases and the hassle of renewal every year.
While long-term third-party coverage is mandatory, you can choose to insure your vehicle with a comprehensive bike insurance policy that provides all-around coverage for your new two-wheeler.
Third-party bike insurance coverage does not protect you from loss or damage in cases of theft, fire, etc., and only covers liabilities affecting third parties. You should invest in a standalone own damage cover or comprehensive insurance coverage to protect yourself and your bike in any unfortunate event. But given that comprehensive insurance comes with a mandatory third-party cover, getting it will ensure optimal protection against unforeseen incidents.
Personal Accident Cover
While a basic two-wheeler coverage offers protection against damage caused to the bike and third-party liabilities, a personal accident cover added to the policy covers you against financial obligations associated with your medical expenses in case of an accident.
The mandatory personal accident cover has increased to INR 15 lakh recently. Under this coverage, you receive compensation when you face any injury or disability from a road accident. A full insured amount is paid to the nominee of the policyholder in case of death from an accident.
You can opt for various additional covers that strengthen your comprehensive insurance. Despite its wide-ranging coverage, a comprehensive policy may not protect you in every situation. So, you can use add-ons to customise your coverage to your needs and ensure you stay protected in every scenario. While these add-ons increase your premium amount, they provide extra cover in situations not generally covered under the basic policy.
As bike insurance add-ons come at an extra cost, choosing the right ones is critical. For example, a pillion rider cover may not be so relevant and rewarding to you if you ride alone most of the time. Some of the most common add-ons include accessories cover, engine protection, roadside assistance, zero depreciation, etc.
Premiums and Other Costs
A critical factor when deciding the right course of action for two-wheeler insurance is the overall premium payable for coverage. While they have been edging downwards owing to extensive competitive pressures in recent years, a discerning customer can take advantage of plenty of deals and offers.
Many insurers also provide extensive add-ons and discounts in the backend, resulting in a substantially higher value, making it difficult to make decisions based entirely on the upfront cost. So, compare the offers on sites, such as Paytm Insurance, to grab the best deal.
Claim Settlement Ratio
A key metric most buyers miss is the bike insurance claims settlement ratio, which essentially tracks the percentage of claims settled by the insurer in any given year. A higher percentage indicates a hassle-free settlement when needed, and many providers with lower premiums are all the more likely to haggle when settling claims.
Online Insurance Policy
Two-wheeler buyers generally buy the insurance policy suggested by their dealers. Though it seems convenient, it can sometimes be expensive and unproductive.
Checking out vehicle insurance policies online is a better option as you can compare all the plans available and pick the one that provides extensive coverage at a low price.
Taking control of your insurance coverage and buying it online saves you time and effort. It allows you to see all the policies from different companies and compare their benefits and premiums to decide on the right one for your needs. This way, you get sufficient coverage and save money.
With insurance buying moving online, we will likely see rising competition from new and established players, resulting in lower prices and enhanced value for the end consumers. Such competitive spirits are impossible to ignite offline and only remain feasible when working with online comparison platforms and marketplaces.
Consider some essential factors when purchasing an insurance policy for your new two-wheeler.
You must analyse your needs, compare different insurance companies and plans, and choose the one that provides the required coverage at a competitive price. In this regard, Paytm Insurance remains an ideal place to get started.
These are exciting times in the insurance space, with plenty of innovations seeking to enhance value for buyers and provide value-added services to bike riders in India. It remains to be seen what more the future of this segment holds.
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