Buying a two-wheeler insurance policy has been mandatory in India from a long time. It is so important that the authorities have made it mandatory to buy a long-term policy of 5 years for a new bike. When there is so much emphasis on buying a policy and securing your finances, it is common sense that buying bike insurance should not be taken lightly.
We advise you to not depend upon the bike dealer for purchasing insurance coverage and make a decision based on your personal choice. Remember that it is mandatory to buy bike insurance. You can buy your own policy separately without the help of a dealer.. In this article, we will discuss things that you need to focus on while getting your bike insured. Let’s get started.
Details to look for while Buying a Two-wheeler Insurance
#1 Type of policy
There are two types of bike insurance policies. Third-party Liability policy and Comprehensive Bike insurance policy. You need to decide which type will be the most suitable for your needs. The third-party policy will only cover you against damages or injuries caused to third-party. On the other hand, a comprehensive policy will cover you for third-party damage as well as own damage i.e. the damage caused to your bike. You can compare two wheeler insurance to know the exact differences. Experts suggest that one should always buy a comprehensive policy because it offers more coverage and you do not have to spend a major amount in case of an accident.
#2 Value of your bike
The current market value of your bike becomes the base for calculating the premium of your comprehensive bike insurance policy. In insurance parlance, this value is called the Insured Declared Value (IDV). You need to set the IDV of your bike while buying a bike insurance policy. IDV can easily be calculated by knowing the approximate current market value of your bike. Compare two wheeler insurance to check the amount of IDV on offer. If you have a high-end or sports bike, the IDV of your bike will be higher. If you own a simple 110cc bike, its IDV will be lower and the policy lighter on your pocket.
Knowing and understanding the coverage of your bike insurance policy is the most important thing while buying a policy. It will be much easier to make a claim if you understand the coverage provided by your policy. If you buy bike insurance online, you will get better coverage. A comprehensive policy usually offers the following coverage:
● Theft cover
● Fire Damage
● Damage due to natural calamities like flood, earthquake, landslide, etc.
● Damage due to man-made calamities like riots, vandalism, etc.
● Third-party damage
● Third-party legal liability
● Damage due to accidents
Your claim will be rejected if the damage is not covered under your policy. You can check the coverage of your online two wheeler insurance by visiting the insurer’s website.
Knowing the exclusions of your policy is as important as knowing the coverage. You should be aware of the situations under which you cannot raise a claim. The list of exclusions will also be mentioned in the policy document while buying your bike insurance policy. Following are the common exclusions:
● Mechanical or electrical breakdown
● Regular wear and tear
● Accident when riding a two-wheeler while under the influence of an intoxicating substance
● Damage when occurred outside the geographical limits
● Damage due to nuclear reactions
● Any other situation mentioned in the policy document as an exclusion.
Similar to coverage, you can visit your insurance company’s website to check the exclusions of your online two wheeler insurance policy.
#5 The credibility of the insurance company
It is necessary to get your two-wheeler insured from a credible insurer. This will be helpful at the time of claims. If the turnaround time, services, product features, etc. are not up to the mark, you will be left in a disgruntled situation in the time of need. Thus, choose your insurer wisely. Get to know about the reputation of the company before buying your policy.
Nowadays, social media serves as a perfect platform to know about satisfaction levels of existing customers that have already bought online two wheeler insurance. You can also check the claim settlement ratio and the incurred claim ratio of an insurance company from the regulator’s (IRDAI) website. Note that it is advisable to buy bike insurance online.
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