As the name suggests, two-wheeler insurance is a policy that will reimburse you in case of any damage to your two-wheeler. This damage can be due to an accident or any mechanical problem with your vehicle. In India, it is mandatory to have insurance if you own a two-wheeler. Your dealer will, most likely, offer two-wheeler insurance services that you can avail of.
However, two-wheeler insurance is quite important, and you should spend some time comparing different policies as they all have their pros and cons. A more comprehensive policy can be costly, but it may be worth it.
Road accidents can occur at any time, and in such a situation, a good insurance policy can help you financially. If you do not wish to proceed with the policy offered by your dealer, several insurance providers offer excellent policies online.
Purchasing bike insurance has become much easier over the last decade. All you need to do is simply fill up a form online and upload a few documents. You can expect your insurance application to be completed within a few days and sometimes even within 24 hours.
In this blog, we’ll cover the three most important questions you should ask before purchasing a two-wheeler insurance policy.
Type of Insurance Policies
There are two types of insurance policies available for two-wheelers:
|Comprehensive Bike Insurance Policy||Third-party Liability Insurance|
|A comprehensive bike insurance policy will reimburse you for the damage caused to a third party and any damage to your own two-wheeler.||A third-party liability bike insurance policy will only reimburse you for any damage that may have been caused accidentally to a third party while you were driving your two-wheeler.|
Value of the Two-wheeler
The value of your automobile decides the cost of your two-wheeler insurance. If you have a 150cc bike, your sum insured (and your premium) will be lower than that of a sports bike.
In insurance terms, the value of your two-wheeler is known as the IDV or Insured Declared Value. You will need to provide the IDV of your bike while purchasing your insurance. If you’re buying an insurance policy for a bike that you have just purchased, the IDV can be equivalent to the full market value of that bike.
However, it’s different if you purchase insurance for a two or three-year-old two-wheeler. You will need to calculate the market value of your bike based on depreciation. This is because the value of the vehicle decreases the longer it is used. You will also need to consider the number of kilometres you have driven your bike for.
On average, the IDV of a one-year-old two-wheeler will be 10% lower than that of a completely new bike. You can utilize a bike insurance calculator to determine your IDV.
Coverage and Exclusions
The coverage and exclusions are the most important factors determining how good an insurance policy is. As a general rule, you should opt for an insurance policy that covers more situations and has fewer exclusions. However, the premium of such an insurance policy may be higher.
Some of the coverage items that should be included in an insurance policy are:
- Damage caused to the two-wheeler due to an accident.
- Damage caused to the vehicle of a third party due to an accident.
- Loss of two-wheeler due to a fire.
- Loss of the two-wheeler due to theft or robbery.
- Damage caused to the two-wheeler because of a natural calamity such as an earthquake or a flood.
- Damage caused to a two-wheeler due to man-made incidents such as riots or vandalism.
A comprehensive bike insurance policy will usually cover most of the above points. Insurance policies purchased online typically provide better coverage than an insurance policy bought through an agent or a vehicle dealer. This is because it is more cost-effective for the insurance company to process such an application.
Further, you should be mindful of the exclusions. Exclusions are situations in which the insurance provider will not reimburse you.
Some of the common exclusions included in an insurance policy are:
- Regular wear and tear suffered by your two-wheeler.
- Any mechanical or electrical breakdown suffered by your two-wheeler.
- Damage caused to the vehicle while being outside the geographical limits of the insurance policy.
- Damage sustained by the two-wheeler due to a nuclear accident.
The insurance provider’s website will inform you about the exclusions in the policy. So, you should read the insurance documents carefully before purchasing a policy.
Purchasing two-wheeler insurance is mandatory if you wish to drive your vehicle legally in India. You may consider going for a more expensive two-wheeler insurance policy because it can save you money in the long run. You should carefully go through the documentation of the insurance provider before purchasing a policy. You can check out Paytm Insurance for hassle-free insurance solutions and attractive premiums.
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