Key Factors That Influence Your Bike Insurance Cover
Updated On Mar 14, 2021
This article is about how certain factors influence your bike insurance cover. It mentions the top 5 factors in detail.
In many ways, bike insurance keeps you and your bike safe against the financial exigency of an unfortunate accident. Your responsibilities as a bike owner do not end with just researching for a bike insurance policy as there are several factors that impact your coverage and rate of premiums. In this article, we are going to discuss some of the most important aspects that influence the same.
Key Factors That Influence Your Bike Insurance Cover -
The following are a list of factors that significantly influence your bike insurance cover, such as -
Manufacturing Company -
The manufacturing company of your bike is one of the leading factors influencing your bike insurance cover. Indian bike manufacturing companies offer a regular cover and affordable rate of premium. But, international brands are more expensive and hence lead to a higher rate of premium. So, whether your bike was manufactured in India or abroad has a bearing on your bike insurance cover.
Engine Capacity -
An engine is the heart and lifeline of a bike and is one of the most important components of any two wheeler and it affects the premium of your bike insurance. For example, in India, there are four recognized categories of engine capacity such as 75cc, 75cc to 150cc, 150cc-350cc and above 350cc. The rate of premium corresponds to these categories and gradually increases. In India, it is decided on the engine capacities for third party liability insurance only.
Insured Declared Value (IDV) -
The Insured Declared Value or IDV is the sum assured of your bike insurance policy. It is paid to you by the insurance provider in case of theft or complete damage to your bike and is a key player when it comes to affecting your insurance cover. While buying bike insurance, your IDV should be equal to the market value of your bike. Lower IDVs might have a lower rate of premium but the compensation and benefits will be less than adequate.
No Claim Bonus (NCB) -
The No Claim Bonus (NCB) or the discount on premiums that you receive from your bike insurance provider for not making any damage claims in a single policy year is accumulated over the years, beginning with a 20% discount that goes up to 50% in 5 years. The NCB directly impacts your premium amount and is considered to be one of the best ways of availing discounts on your bike insurance policy.
Proximity to RTO -
The location of the RTO in relation to the place of your bike’s registration affects your insurance’s rate of premium. In India, the locations are divided into 2 zones, namely Zone A and Zone B. All the major metropolitan cities fall under Zone A that require the payment of a higher rate of premium while all other places are clubbed under Zone B and have a lower rate of premium. This is because, the density of population, risk and damage factors are determined by the zones where the bike is bought from.
The above are a list of key factors that affect your bike insurance cover. You can buy an insurance cover both online and offline and it is important to ensure one so that any kind of damage sustained by your bike is covered by it. Increasingly, Indian roads are accommodating more bikes and cars and it would be wise to protect yourself against potential risks.
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.