A Comprehensive Checklist for Buying Bike Insurance

Not many people realise that they must exercise the same amount of care and consideration while buying bike insurance as they take while making their choice of bike. Given that there are many insurance companies that sell two-wheeler insurance policies, at times it becomes an arduous choice for a bike owner to choose the policy that would help avail more benefits than others.

Though the concept of insurance is not new in the Indian context, there is still an ardent need to impart knowledge about the same. The key points that bike owners need to keep in mind before paying for their bike insurance policy are:

Know Your Insurer’s Maximum Insurance Declared Value (IDV):

Maximum IDV is the amount the insurance company agrees to pay the policyholder in case of damage caused by accident or in the event of the bike getting stolen. The amount of maximum IDV differs as it is calculated after making adjustments for depreciation and other factors while keeping in mind the selling price listed by the manufacturer. One should choose to buy a policy from the insurer that assures maximum IDV.

Kind of Policy You Wish to Choose:

There are two kinds of two-wheeler insurance policies available. The liability only policy also called the third party insurance cover includes payments of only third party liabilities that arises from the bike owner meeting with an accident, thus, causing bodily injury to those involved in the accident. However, a personal accident cover is also provided subject to the needs of the insured. While choosing an insurance policy, one may also opt for a comprehensive insurance cover that not only covers third-party liabilities including providing a cover for bodily injuries or related expenses to the third party, but also cover damages caused to the bike owner as a result of the accident.

Inclusions and Exclusions of Bike Insurance Coverage:

Most insurance policies cover damages resulting from fire, explosion, theft, accidents in addition to the loss caused by natural calamities. However, insurance companies refrain from protecting against damage caused by accidents caused due to drunk driving or under the influence of addictive substances like drugs, not having a valid driving license while driving, damage stemming from war in addition to continuing depreciation of the vehicle with time, etc.

Buy or Renew Bike Insurance Online:

Money wise, it is beneficial to purchase or renew bike insurance online due to competitive premium rates. Many insurance companies offer discounts on online payment of a new or renewed policies. This is because transactions made online, whether buying a new insurance policy or renewing it, saves insurers the hassles of processing and distribution costs, the benefits of which they pass on to the end customers.

Compare Bike Insurance Policies for Add-On Covers:

What are the add-on covers that your insurance company provides? To avail add-on covers, how much additional amount do you have to pay? These are typical questions that the insured ask while choosing to opt for additional facilities like timely assistance on road in case the bike breaks down, zero depreciation, cover against damage to engine and electronic circuits in case of flooding, etc.

Compare Bike Insurance Premiums Online:

The internet is the gateway to all kinds of information needed to make a conscious decision. Just like people compare prices of things by logging on to the various e-commerce portals, one must also scan websites of various insurance companies or log in to the sites of online insurance aggregators to views prices and benefits and compare them as per their needs.

So, before you proceed, compare the premium rates and benefits and choose the insurance policy offering maximum benefits at lowest possible rates.

Know Insurance Rules Regarding Change of Bike:

Insurance companies may have different regulations when it comes to buying a new insurance policy or renewing an old one. Similarly, rules may also differ if there arises a need to substitute one bike with another. Though the insured may continue with the current plan, the same is allowed only if adjustments for premium have been done on a pro-rata basis. Also, some models require the new bike to be of the same model as the previous one.

Know Your Insurer’s No-Claim Bonus protection (NCB) Policy:

This is also an add-on cover the benefits of which most insured ignore and hence do not pay for. For those who do not file a single insurance claim during the entire year, this add-cover serves as a reward. The no-claim bonus facility rewards the insured by offering them a discount on their subsequent premium payments. However, in the event of filing a claim, the insured loses the facility of availing a discount. Having this add-on cover ensures discount on future premiums, despite having made a claim in the past.

Claim Processing Awareness

While buying bike insurance online or offline, it is necessary that one is aware about the claim settlement process. Knowledge about how to raise your claim and settle it is very important considering that having an insurance policy is nothing but securing a protective cover against probable damage. The insured must be ready with the customer service details of the insurer so that the later may be contacted when the need arises. Also, the insured must have knowledge about the concept of constructive total loss (CTL), i.e., an insured vehicle is deemed a CTL if the cost of repair or the amount expended on retrieving it back to its original form is more than 75 percent of the IDV assured by the insured. If such a scenario arises, the insurance company will pay the maximum IDV promised minus the amount of depreciation calculated on its parts.

Third Party Claim:

As per the regulations of the Motor Vehicles Act, the extent of third party damage claim that would be borne by any insurance company would be limited to Rs. 100,000. However, one can restrict the cover to Rs. 6000. Putting a cap on third party claim can lower the amount of premium to be paid.