Avoid These Common Mistakes While Buying Bike Insurance Policy
The excitement of buzzing around the city in search of foodie delights and chill hangout spots is unmatched. Once you have the independence of scooting around at your will, you will hardly find a boring minute. However, what if while you are on the way to your favourite Chinese restaurant and a traffic police officer pulls you over? Are you sure your paperwork is accurate?
Most two-wheeler owners fail to understand the importance of bike insurance. The few who do are too busy to read the fine print. This is where the mess-up begins! Before buying two-wheeler insurance you should know the inclusions and exclusions of the policy so you don’t have any surprises (or shocks) waiting for you!
To guide you here are 5 common mistakes you should avoid while buying bike insurance -
1. Not Spending Enough Time on Research:
It is easy to get distracted by a meme or post while researching for benefits of an insurance policy. However, by avoiding the research phase, you are making yourself vulnerable. Not knowing about the products or options available in the market make you an easy target for those looking to make a quick buck. In fact, if you are not careful, you may end up buying an expensive policy that does not meet your needs. Before you ask anyone else for suggestions, it is best to explore the market and do some primary research yourself. Read the free information available on various portals and consult with customer support agents if you are confused about something. Buying a policy without comparing the different plans offered by different insurers is another way to pay without getting much in return.
PRO-TIP: Use free tools like Premium Calculator to get an idea about the premium amount for your bike insurance before buying.
2. Choosing the Incorrect IDV:
Your premium amount is directly dependent on your vehicle’s Insured Declared Value (IDV). Insured Declared Value is the highest sum that your insurance provider will pay in case of a claim. However, IDV of your vehicle is determined by the insurer and often not verified by the owner. A higher IDV will definitely come at a higher premium, but that does not mean you should settle for the cheapest plan. It is important to choose the accurate IDV to ensure you are financially covered in case of theft or complete loss.
3. Ignoring Your No Claim Bonus (NCB):
If you are a safe rider with no history of claims during your policy period, you are eligible for No Claim Bonus (NCB). NCB is a percentage discount offered by your insurance provider as a reward for reliable driving. No Claim Bonus can be claimed at the time of renewal. At the end of your first zero-claims year, you will get 20% off on your premium amount. Using your NCB you can reduce your premium by flat 20%.
4. Making errors while entering your personal details or nominee:
Forgetting to enter or misspelling any information will be considered fraud and may have legal implications. All claims filed under these circumstances will be subject to a legal procedure. You may end up losing your cover, your money as well as your reputation in the market. Therefore, pay close attention to the details you are filling. Make sure personal details match the details on your ID-proof. It is also a good practice to have a nominee, in case of any unfortunate events. Your nominee is the member of your family who can claim the benefits of your policy after you. Do not forget to have a nominee at the time of buying two-wheeler insurance.
5. Letting Your Policy Expire:
As per the law in India, it is mandatory to have a valid policy while riding on the road. If you are riding with an expired policy, you are liable for a hefty fine and/or imprisonment. Moreover, if your date of expiration is more than 90 days, you will lose your NCB (if any). Therefore, make ti a point to renew your insurance well before the expiration date to avoid unwanted penalties.
Buying A Low-Cost Insurance Is NOT The Best Policy:
You will agree that quality matters over quantity. And so, do not fall for the cheapest plan available on the market. You will find insurance providers who will offer low-priced bike insurance at discounts with a wide range of benefits and features. But tests the waters before you dive in! Read and research about the insurer, the products, and customer feedback. Find their Incurred Claim Ratio (ICR) and Claims Process. After all, it is best to know all the terms and conditions beforehand.
If you are a first time buyer, it is normal to make a few mistakes. However, minor mistakes like policy details and the nominee’s name can be rectified easily. Researching well and comparing quotes is also a good habit. In fact, to save yourself from fake insurance agents, it is recommended you buy online. This will help you explore the different products and compare all the different plans in one place.