5 Factors To Know Before Buying Two Wheeler Insurance

Written by Sharad Bajaj

Updated On Aug 06, 20202 min read

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.