Important Factors to Consider When Purchasing Two-Wheeler Insurance
Published On Apr 10, 2022
When you're looking to buy a new bike, you think about a lot of things including the brand, model, mileage, price, maintenance costs, and so on.
Table of Contents
When you're looking to buy a new bike, you think about a lot of things including the brand, model, mileage, price, maintenance costs, and so on. Similarly, while purchasing bike insurance coverage, you should take your time and think about it. But, if you're unsure of the important things to examine before purchasing a bike insurance policy, don't worry; we've got you covered.
Few Things To Consider Before Buying Two-Wheeler Insurance
The following are the criteria that will assist you in making the best selection when purchasing a bike insurance policy:
1. Types of Bike Insurance Policies
You must first choose the sort of coverage you require before selecting one from a pool of bike insurance products. There are three types of bike insurance plans in terms of coverage:
- Bike insurance for third parties,
- Own-damage bike insurance coverage on its own, and
- Bike insurance covers everything.
It is necessary for India to have at least third-party bike insurance coverage. It protects you from third-party liability in the event of an accident. A standalone own-damage bike insurance coverage protects you against your bike's own damages in the case of an accident. A comprehensive bike insurance policy, on the other hand, is a combined package of the two, covering you for both third-party and own-damage charges incurred as a result of an accident or other disaster.
2. The Ratio of Claims Resolved
The major reason for purchasing bike insurance coverage is to seek assistance from the insurance provider in the event of an emergency. In addition, the Claim Settlement Ratio (CSR) indicates how well an insurance business handles claims. The ratio of claims settled by an insurance company to the total number of claims incurred during a financial year is referred to as the CSR. So, if you want to get the most out of your bike insurance coverage, learn about the insurance company's CSR. To avoid misunderstanding, you should be thoroughly educated on how to claim bike insurance in the event of a mishap, in addition to the claim settlement percentage.
3. Partner Garages Network
If your insurance carrier offers a large number of cashless garages, having your bike fixed in the event of an accident will be a breeze. This emphasizes the need of double-checking the number of network garages covered by insurance because the more garages covered, the more options you'll have.
4. Amount of Premium
The amount you pay in order to get benefits under your bike insurance coverage is known as the premium. The cost of two-wheeler insurance is determined by a number of criteria, including the insured declared value (IDV), policy term, type of coverage, and No Claim Bonus (NCB), among others. Be aware that bike insurance is a need, not a luxury. As a result, you should not acquire bike insurance coverage exclusively on the basis of the premium amount.
5. Exclusions from the Policy
The hazards that an insurance company will not cover are known as exclusions. Knowing what a bike insurance policy covers isn't enough, though. You should also be aware of the policy's exclusions. Nobody wants their claim to be denied simply because they filed it for an occurrence that isn't covered by their bike insurance policy. If you want the same thing, avoid policies with a lot of exclusions. Other aspects to consider while making a purchasing decision include customer service and assistance, the need for add-ons, insurance length, No Claim Bonus, and Insured Declared Value.
Having bike insurance coverage is crucial not just to meet legal requirements, but also to protect yourself financially in the event of an accident. As a result, make sure there is no opportunity for any ambiguity regarding the reasons listed above, as this might lead to a poor selection.