Insurance policy is the best possible way to protect your bike against expenditures incurred due to an accident or theft. However, you are also legally liable under the Motor Vehicle Act, 1988 to always keep your vehicle insured. Buying third party insurance is mandatory for a vehicle owner in India.
With so many bike insurance products present in the market, you might get overwhelmed amid so many options. Here are a few essential things which you need to keep in mind before buying an insurance policy for your bike.
> Go for a Comprehensive Cover
You can choose from two types of bike insurance policies available in the market. The first one is comprehensive which covers every aspect of the less caused due to an accident or theft and the second one is the third party, which covers the damage or legal liability you may cause to another vehicle or person in the event of an accident. Both the policies are valid only for a year.
Only third-party insurance policy is relatively cheaper as the risk-cover of your bike is not included in it. However, it is advisable to take a comprehensive policy to cover your bike and third party liabilities as well.
> Online Covers are Cheaper
The policy premium of your bike fluctuates on a number of factors including the cubic capacity (CC) of your bike’s engine, age of the vehicle and location of the city. Besides, there are different premium charges offered by different insurance companies. It is advisable to buy the insurance policy from an online channel to avoid paying commission to insurance policy advisor. Buying insurance policy from online channels is relatively cheaper as companies are not liable to pay the commission to advisors and they pass on the benefits to customers.
> Know Your IDV
IDV, or Insured Declared Value is the present market value of your bike. It is the maximum insured amount you can claim in case of theft or total loss. IDV decreases significantly as the age of your bike increases.
> Go for suitable Riders
You can add several riders to your bike insurance policy to get extra benefits. These riders include free roadside assistance, personal accident cover and engine protection plan to keep yourself covered from all kinds of threats. However, the inclusion of riders will increase the amount of your premium.
> Claim your NCB
If you haven’t claimed any amount in your previous insurance tenure, you can ask for no claim bonus while renewing the policy. You can claim up to 50 percent discount on the premium of your bike insurance policy.
> Always check the Claim Settlement Ratio
You can visit the website of IRDAI.gov.in to check the claim settlement ratio of bike insurance sellers. Look for a seller who has a higher claim settlement ratio with the least disputes. A higher claim settlement ratio means you can easily get the claim in the event of an accident or theft of your bike.
Little precautions can go a long way in your bad times. Think, analyse and then choose the type of insurance policy you need for your two-wheeler before buying one.