Buying a two-wheeler insurance policy is not the same in all dimensions like purchasing any clothes. It is not easy and of course, we understand that it is a non-replaceable product. You cannot just go and ask the insurer to exchange your bike insurance policy because it does not fit your requirements. Right? This is why you need to be extra cautious when buying a bike insurance policy.
Before buying a two-wheeler, you look for its mileage, price, model, maintenance cost, and serviceability. Understand that getting a two-wheeler for transportation is not compulsory but buying a two-wheeler insurance policy is mandatory. Several insurance players in the market offer insurance cover at different conditions. The premium can also vary with different scale or scope of cover. Let us look at the factors that affect the premium for a two-wheeler in common:
- Insured’s Declared Value of the vehicle.
- The engine capacity (CC of the engine)
- Type of the cover you choose, that is, Third Party Only or Comprehensive Policy.
- Safety Device Installation.
- The City of Registration.
- The purpose or the use of the two-wheeler.
- Bonus or discount offered by the insurance company.
- Voluntary deductibles opted.
- Automobile Association Membership.
- Online/Offline Policy.
With so much information around, it gets tricky to choose the best two-wheeler insurance policy for your bike. So we are here to help you out.
5 most important things while buying a Bike Insurance Policy:
Here are the 5 most important things you must look for when buying a bike insurance policy:
1. Insured’s Declared Value
Before finalizing the insurance product for your bike, always check the Insured’s Declared Value. Do not just consider the premium thinking that less premium can suit your pocket. The IDV of the bike depends on the market value after the depreciation.
Always prefer to choose higher Insured’s Declared Value because that impacts the amount of compensation you will get. The percentage of depreciation application is directly proportional to the age of the bike.
|Age of the bike||Percentage Depreciation.|
|Less than 6 months.||5%|
|More than 6 months but less than 1 year.||15%|
|More than 1 year but less than 2 years.||20%|
|More than 2 years but less than 3 years.||30%|
|More than 3 years but less than 4 years.||40%|
|More than 4 years but less than 5 years.||50%|
2. Type of Insurance Cover you need
A Third-Party Insurance policy is a mandatory cover in India. But you can buy a comprehensive package policy for your bike which consists of the own damage cover and the third-party liability cover. The package policy covers the bike or pays you compensation if a loss arises from accidents, theft, fire, natural disasters, personal accident, and third-party liability.
On the other hand, a Third-Party Liability Policy will cover only damages/losses that may arise when a person, a vehicle, or a property is hurt from your bike.
The premium of only third-party bike insurance is fixed and is decided by the Government of India, so all the insurance companies will offer this policy at the same rate. But as the insurance company decides the premium of the own damage cover by considering various factors, it may vary from insurer to insurer. Think of the type of coverage you need before you purchase the bike insurance policy.
Our suggestion: If your bike is brand new, then the comprehensive policy is a must and if your bike is too old, you can consider a stand-alone third-party policy.
3. Additional Covers
Nothing comes for free! For insurance, this is a fair deal because paying a premium for the type of cover guarantees you protection. There are conditions attached to it further.
The additional covers you choose under your two-wheeler insurance policy are chargeable. Hence, you must know which is a favorable cover for you to buy. You can think of purchasing a Zero Depreciation Cover, Return-to-Invoice Cover, Engine & Gear-Box Protection Cover, Breakdown Assistance, and Consumable Cover.
4. Service Factors
Claim services are a vital point where the policyholder is impacted the most because technically, the insurance policy comes into play when the policyholder claims for a loss. If at the time of loss, the insurance company fails to help the insured, their trust shakes. Bear this in mind and at the time of purchase, think of these:
- How many cashless repair garages are there?
- Is there a facility for advance payment of repairs?
- Is there a provision of self-inspection just with a smartphone?
- 24*7 support available or not?
- Can you customize the IDV of the bike?
- What is the rate of claim settlement?
- Does the company have good reviews?
Read more: 5 Best Car Insurance Companies in India
In general, there are two types of deductibles: voluntary and compulsory. You cannot work on the compulsory deductible because that is a condition applicable under the bike insurance product. A voluntary deductible is part of the cost of future repairs to your bike that you agree to pay while buying the policy. If you choose to increase the voluntary deductible, the premium will reduce to some percentage. Consider the use of the bike and then decide whether you wish to opt for the voluntary deductible or not.
Why should you buy a two-wheeler insurance policy?
You must buy a two-wheeler insurance policy because:
- Third-Party Liability Policy is a mandatory condition as applicable by law.
- It can pay you for the cost of repair after an unfortunate accident.
- It will comfort you financially if you lose your bike in theft, fire, flood, or in any natural calamity.
- It provides financial support to your dependents if you lose your life or become permanently disabled after a severe accident.
- It can help you to pay for third-party losses. The insurer can also help if you are dragged into legal issues after a third-party loss.
How can you buy a bike insurance policy?
You can purchase a two-wheeler insurance policy for a bike either online as well as offline. It is entirely your choice as a buyer. Purchasing the policy online can save you some money because the premium is free from service providers’ costs; yah you got it right! There are no middlemen involved, so no commission to be paid. Insured directly deals with the insurer.
Buying a bike insurance policy does not free you from the prevention of loss. It is your moral responsibility to avoid mishaps or any accidental happenings. Select the right cost of your bike and avoid filing small claims with the insurers. Make sure you buy a suitable two-wheeler insurance policy after proper consideration.