Two-wheelers are the most preferred vehicles for commuting in India as they are affordable and fuel-efficient. However, due to the busy and crowded streets, the risk of running into accidents that may lead to injuries and bike damages cannot be undermined. Therefore, the government has made compulsory a bike insurance policy that offers complete coverage from the costs related to bike damages and injuries.
These days, you can easily buy a bike and car insurance online. However, be aware of the various motor insurance policies and features before choosing one.
Here are 5 expert tips that will help you choose the best bike insurance:
1. Know different insurance types
Bike insurance is of two types, third party cover and comprehensive bike cover. The third-party cover reimburses the claims made by a third party against you. The claims can be for the personal injury or damage caused to the property or vehicle of the third party. However, a comprehensive bike cover covers the expenses related to repairing and replacing bike parts that may be required after an accident. It also includes the third-party cover and a personal accident cover that reimburses the medical costs incurred because of the injuries.
Go through the details of these bike insurance types and compare the features like the premium, discount, claims process, etc., of various insurance providers before buying bike insurance online.
2. Get the highest IDV for your bike
IDV i.e. Insured Declared Value is the value of your bike set by the insurer when purchasing a bike insurance policy. It determines the policy premium and the compensation amount if your bike suffers from total damage.
The invoice value of your bike, age, condition, and depreciation are some of the main factors that an insurer evaluates before allocating the IDV. Compare the IDV offered by several insurance providers to ensure that you get maximum coverage for damages.
You may also estimate the IDV by using an IDV calculator, which is easily available on the internet. After calculating the IDV, compare it with the IDV offered by an insurance company for your vehicle. Choose an IDV that is close to the current market value of your two-wheeler. It would help you get adequate coverage after an accident.
3. Get cover for depreciation
Depreciation is the rate at which your bike loses its value as it ages. It also lowers the compensation for the damaged parts after accidents. Also, the depreciated value will be considered while reimbursing the insurance claims in case of bike thefts and total damage.
To minimize the losses due to depreciation, get nil or zero depreciation add-on cover with a bike insurance policy. It will nullify the depreciation cost and will help to maximize the reimbursement amount when you raise the claim.
4. Things not covered by bike insurance
It is important to read and understand the policy documents carefully. You will get an idea of the terms and conditions adopted by an insurance company while settling the claims. You will also get an idea about the exclusions. The exclusions include the cases or instances you cannot claim for. Having a thorough idea about the exclusions will avoid filing unnecessary claims.
For example, damages caused due to mechanical breakdown, electrical breakdown, regular wear and tear are not covered by a two-wheeler insurance policy. Similarly, the insurer will reject your claim if you are found breaking the traffic rules or meet with an accident under the influence of drugs or alcohol.
If you do not claim insurance coverage during the policy term, you will get NCB i.e. No Claim Bonus, as a reward. A discount up to 50% in the policy premium can be secured if you have earned the No Claim Bonus. Up to 50% of the NCB can be transferred when you opt for another insurer’s plan.
Insurers who IRDA approves also offer discounts for members of registered automotive associations. You can also expect a discount if your bike is upgraded with the latest anti-theft equipment.
Apart from these things, it would help if you observed these things before buying bike insurance:
- Know whether the insurance company offers a seamless online renewal process or not.
- Get an idea about the company’s reputation and get information about the claim settlement ratio. A higher claim settlement ratio signifies that the insurer settled most claim applications.
- Know the extent of own-damage coverage offered by the insurance provider. It is because you should know whether the insurer provides protection against theft, natural calamities, fire, accidents, and other reasons that may cause damage to your vehicle.
To get more information on different types of motor insurance plans and discounts, check the website of Bajaj Finserv. Bike insurance plans of leading insurance companies are available on this site.
