Team AckoAug 25, 2021
Bike insurance policies are short-term plans valid for one, three, or five years. So the bike owner needs to renew it each time on expiry. Instead of continuing with the same coverage, the owner has a chance to revisit the details and modify the plan as per new requirements. This article sheds light on some things that you didn't know about bike insurance. Knowing them can help you buy better bike insurance coverage.
People always emphasise the coverage or exclusions of a bike insurance policy. While these are very important, the policyholder must know how bike insurance works. So here is a list of things about bike insurance that you might be unaware of.
Most people are aware that bike insurance premium changes as per the model, engine capacity, or manufacturing year of the bike. But it is also possible to get custom bike insurance plans that will cater to your specific needs. This can be done with the help of add-ons. You can choose only those additional coverages that suit your requirement. For example, a Zero Depreciation cover if you own a new bike.
Most people know that cashless claims refer to health insurance; however, you can also raise a cashless claim against your two-wheeler insurance policy. All you have to do is send the bike for repairs at a network garage if it gets damaged. Since the insurance company will have a tie-up with the garage, you don’t have to pay anything (if damages are covered as per policy terms) except for the costs not covered by the insurer.
This is one of the most useful add-ons covers you can buy with bike insurance. It offers services like free towing, on-spot repairs, fuel refill, on-call assistance, etc. The Roadside Assistance add-on becomes the ultimate saviour if you ever suffer a bike breakdown.
Due to technological advancement, bike keys have become expensive. The Key Protect add-on will cover the cost of a lost key and/or the lockset in case of theft or damage. The insurance company can also replace the lock and key of your bike if there is a theft attempt (depending upon the terms and conditions of the policy).
There can be certain legal consequences of getting into an accident with a third party. These are covered under even the most basic bike insurance cover, i.e. The Third-party Liability policy. Your insurer can also provide legal assistance in such cases.
People who buy a new bike are often asked to buy bike insurance while purchasing the vehicle. And thus, many people assume that it is mandatory to buy bike insurance from a dealer. However, it is not at all necessary. In fact, you can buy a more suitable coverage at a competitive premium if you compare bike insurance plans online. For example, ACKO provides smooth claims and hassle-free services at a lower price.
The engine is one of the most expensive parts of the bike. The repair or replacement cost of engine parts can be on the higher side. You need to buy the Bike Engine Protect Add-on if you wish to get it insured.
A few tricks to reduce bike insurance premium are - opt for a voluntary deductible, declare the right Insured Declared Value of the bike, drive safely, avoid raising claims for minor damages to get No Claim Bonus, and renew the bike insurance plan in time to avoid a lapse.
This is one of the major exclusions of any bike insurance policy. The insurer is liable to cover losses that occurred within the geographical border of India. Any damage caused outside may not be covered.
It is crucial to renew your bike insurance plan on time because not only will you be exposed to financial liabilities for damages but the premium may also increase. If you fail to renew your insurance plan 90 days after expiry, then you will lose all the accumulated No Claim Bonus (if applicable), and this will shoot the cost of bike insurance.
Depreciation is the reduction in the market value of your bike. This happens as the age of your bike increases with time. Things like regular wear & tear, damage, claim history, etc., can decrease the bike's market value. When you raise a claim, the depreciation is considered and can affect the claim amount. To avoid this, you can opt for the Zero Depreciation add-on cover. The insurer will not factor in the depreciation on the bike, and your claim amount will increase.
Here, we have penned down answers to some of the most common questions about the topic. You can always get in touch with us by sending an email to [email protected] if you have more queries.
What is the difference between a Third-party plan and a Comprehensive plan?
The Third-party plan does not cover your bike against damages. At the same time, a Comprehensive plan offers a broader coverage that includes third-party liabilities and own damage (i.e. damage to your bike) component. You can also customise your Comprehensive scooter insurance policy with the help of add-ons.
Why do people prefer cashless claims?
Here are a few reasons why people prefer cashless claims.
1. Policyholders have to only pay the amount not covered in the policy (deductibles and other minor charges).
2. Cashless claims require less paperwork as compared to a reimbursement claim. So the hassle of collecting documents and then raising a claim is reduced.
3. Cashless claim settlement is quick as the insurance company pays the repair bill directly to the garage.
Why should one refrain from buying bike insurance from a dealer?
A dealer can influence you to buy additional coverage that you may not require. So it is better to compare various bike insurance plans online before buying them. You can also purchase a bike insurance plan directly from digital insurers (for example, ACKO). Since they adopt a direct to consumer model by bypassing the agents, they offer broader coverage at a lower premium amount.
Also, buying bike insurance from ACKO will allow you to experience a smooth claim settlement journey, buy policies with broader coverage at lower premiums and bid adieu to tedious paperwork.
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