Considering the heavy traffic, it is quite feasible for daily commuters to take their two-wheelers out on the road rather than their cars. But it may not be safe to drive your bikes around without any protective gear. Wearing industry standard safety equipment, following traffic rules, and being careful are the necessary precautions. Another way to protect your bike from financial loss is to purchase the best insurance coverage. As a first-time two-wheeler insurance buyer, it may be daunting for you to compare the different bike insurance policies to get the best coverage.
There are several factors to consider, and you may come across multiple technical terms and jargon that may confuse you. So, here are some essentials you need to know to get the best bike insurance policy.
Understand the Different Types of Bike Insurance Policies
If you decide to purchase two-wheeler insurance, it is important to know the difference between the types of policies offered in India. Third-party bike insurance, required by law, provides coverage against third-party liability for death, personal injury, and property damage. A comprehensive bike insurance policy offers coverage against damage to your vehicle and third-party liability coverage.
A standalone own-damage bike insurance policy covers the bike's own losses and damages. You get comprehensive bike insurance coverage when you combine a standalone own-damage policy and third-party bike insurance.
Best Tips for New Two-wheeler Insurance Buyers
Below are the tips to keep in mind when purchasing two-wheeler insurance:
Always Compare Bike Insurance Plans Online
Comparing two-wheeler insurance policies online before buying one will help you get the best insurance deal based on coverage, premium, cashless garages, claims settlement ratio, customer service availability, etc.
Choose the Type of Policy You Need
You can choose from third-party, standalone own damage and comprehensive bike insurance after doing thorough research on the benefits provided by these. A comprehensive bike insurance policy is the best among the three as it covers the mandatory third-party cover besides immuning financially against vehicle damages. While a third-party insurance policy covers only third-party claims arising from an accident involving the insured two-wheeler, standalone own damage plans compensate you for the damages sustained by your bike. Both these policies come inept against comprehensive insurance.
Select the Appropriate Insurance Top-ups
Buying additional facilities is important because they provide extra coverage beyond your policy. However, they increase the premium cost of your bike insurance, so choose the add-ons you need and can afford.
Keep the Necessary Documents Handy
To get bike insurance online quickly, ensure you have all the necessary documents and two-wheeler details for document verification.
Inform the Insurer of Any Modifications Made to Your bike
Having a safety-enhancing modification will reduce the cost of the two-wheeler's insurance premium, while changes that improve the appearance and performance of the two-wheeler will increase it. However, if you don't inform your insurer of these changes, there's a good chance your bike insurance claim will be denied.
Read the Insurance Policy Document Carefully
Make sure you proofread the bike insurance policy documents to keep yourself informed of the conditions and easily understand the bike insurance claims process.
Factors to Consider Before You Purchase Bike Insurance for the First Time
After following the tips mentioned above, you should consider the following factors while buying the policy.
Understand the Insured Declared Value (IDV)
The IDV in bike insurance is the value of the two-wheeler, and it depends on the manufacturer's declared retail price, which is adjusted for depreciation. This is the maximum sum insured that you can claim in case of theft or damage to the bike.
Understand the Claim Procedure
You must take note of the tie-ups your bike insurance company has with local garages and send the vehicle to a workshop affiliated with the company. Always check if the company's network garages are near your area. You don't need to pay for repairs at any of these garages. Only the costs that the insurer does not cover will be your liability.
Understand the No-claim bonus
NCB in two wheeler insurance is a discount on the premium paid towards your bike insurance policy. You can earn this discount if you haven't raised a claim in the last policy year. The discount can be as high as 50% for five consecutive claim-free years. You get the same on the renewal of the insurance policy.
Read more - How to Calculate NCB for Two Wheeler Insurance?
Calculate the Premium
The premium for your two-wheeler insurance is calculated based on the size of the bike, IDV, optional coverage, make and model, and type of policy chosen.
You need to be aware of the terms and conditions of the policy to ensure that you receive adequate coverage. You can use the bike insurance premium calculator, available online, to get a tentative idea of the desired insurance coverage and related premium cost.
Conclusion
Two-wheeler insurance is not only about protection against high costs, but it also saves you legally. According to the Motor Vehicles Act, 1988, two-wheeler insurance is compulsory, so make sure you have valid two-wheeler insurance online. Paytm Insurance can help you find the best motorcycle insurance that suits your needs. You can even compare the plans offered by the top insurance companies in India.
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