5 Factors To Know Before Buying Two Wheeler Insurance

When planning to buy a new bike, you invest your thought in considering a number of factors such as its brand, model, mileage, price, maintenance cost, etc. Similarly, you should invest a little time and thoughts at the time of buying an insurance policy for your bike as well. But if you are unaware of the crucial details that you must consider before owning a bike insurance plan, then don’t worry as we have got your back.

Here we present below the factors that help you make the best decision when buying a bike insurance policy:

1. Type of Bike Insurance Policy

To pick one from a pool of bike insurance policies, you must first decide which type of policy do you require.On the basis of coverage, there are three types of bike insurance policies namely:

  • Third party bike insurance policy,
  • Standalone own-damage bike insurance policy, and
  • Comprehensive bike insurance policy.

In India, having at least a third party bike insurance policy is mandatory. It covers you against third party liabilities in case of a mishap. Standalone own-damage bike insurance policy covers you against the own damages incurred by your bike in an unfortunate event. Whereas a comprehensive bike insurance policy is a bundled package of the two and covers you against both third party as well as own-damage expenses incurred due to accident or any other mishap.

2. Claim Settlement Ratio

The main purpose of buying a bike insurance policy is to seek help from the insurance company at the time of need. And Claim Settlement Ratio (CSR) tells you how good an insurance company is in handling claims. CSR is the ratio of the claims settled by an insurance company against the total number of claims incurred during a financial year.

So, if you want to make the best use of your bike insurance policy, be informed of the CSR of the insurance company. Along with the claim settlement ratio, you must be well informed on how to claim bike insurance in case of a mishap to avoid confusion.

3. Network of Partner Garages

You can enjoy a hassle-free experience of getting your bike repaired in case of a mishap if your insurance company has a good number of cashless garages. This makes it all the more important to check the number of network garages a policy covers, because the more garages, greater choice you will get.

4. Premium Amount

Bike insurance premium is the amount that you pay in order to avail benefits under your bike insurance policy. Two wheeler insurance calculated on the basis of several factors such as Insured Declared Value (IDV), policy term, type of policy, No ClaimBonus (NCB), along with many others. Know that a bike insurance policy is a necessity and not a luxury. Therefore, you should not make a buying decision for a bike insurance policy solely on the basis of premium amount.

5. Policy Exclusions

Exclusions are the risks that an insurance company is not willing to cover. So, knowing what a bike insurance covers is not enough. You should also be aware of what the policy does not cover. Nobody would want their claim to get rejected just because they made a claim for an event that was not covered under their bike insurance policy. And if you want the same, then don’t go for a policy with many exclusions.

To make the best buying decision, you can also consider other factors like customer service and support, the requirement of add-ons, policy term, No Claim Bonus, and Insured Declared Value.

Takeaway!

Owning a bike insurance policy is important not only to fulfil the legal obligations but also to save yourself from financial burden in case of a mishap. So, make sure there is no room for any confusion related to the factors mentioned above as it may lead to a wrong decision.

In case of any doubt or query, or if you are still unable to choose the most suitable bike insurance policy for your bike, then you can share your requirements with the customer support team at InsuranceDekho. The team will understand it and suggest the most relevant bike insurance policy within the budget.

Also Read:

Know About IDV and NCB in Two Wheeler Insurance

"Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard."

Add-ons For Your Bike Insurance Policy

  • Zero Depreciation
    Zero Depreciation

    Like other assets, the value of your bike also depreciates constantly with time and the liability of this expense by default rests with the policyholder. A zero depreciation add-on protects you against the depreciation expenses incurred by your bike. Thus, if you opt for a zero depreciation cover, depreciation expense of your bike is not deducted from your claim amount at the time of a claim settlement. This add-on is available with comprehensive bike insurance plans as well as standalone bike insurance plans. This is one of the most popular and recommended bike insurance add-on covers.

  • Invoice Protection
    Invoice Protection

    In case of total loss (more than 70% damage) or theft of your bike, the insurance company pays you the Insured Declared Value of your bike as compensation. However, this Insured Declared Value (IDV) is less than the invoice price which you pay at the time of purchasing your bike. The Invoice Protection add-on cover helps you claim the Invoice Price, i.e. total ex-showroom price of your bike plus taxes plus registration charges, of your bike in case of total loss or theft of your bike.

  • NCB Cover
    NCB Cover

    No Claim Bonus is the reward which is given to the policyholder for not making any claim during the policy period. This reward is offered by the insurer in the form of a discount on the own-damage premium of the bike insurance policy at the time of policy renewal. The NCB ranges from 20% to 50% of the own-damage premium depending on the number of claim-free years. However, if you make even a single claim during the policy period this NCB gets lost. But, with the NCB Cover, you can keep your NCB intact even after making a claim during the policy period.

  • Engine Protection Cover
    Engine Protection Cover

    The damages incurred by the engine of the bike are by default not covered under a bike insurance policy. However, if you opt for an Engine Protection Cover, the insurer will be liable to compensate you for damages incurred by the engine of your bike such as damage due to leakage of lubricants, water ingress, hydrostatic lock, damaged gearbox, broken crankshafts or pistons and cylinders. The repair cost of the internal engine parts is often high and can sum up to thousands of rupees or more. Thus, addition of this add-on to your comprehensive or standalone bike insurance policy can save you from these expenses.

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