Tips for First Time Bike Insurance Buyers
Updated On Oct 05, 2020
Tips for First Time Bike Insurance Buyers
Research and knowledge about bike insurance is crucial before planning to buy a policy. Without inadequate information, you could end up buying a wrong insurance plan which may not give you the required coverage. Hence, if you are a first time bike insurance buyer then you should consider different tips to get the right bike insurance plan for you. To start with, you should understand that holding an insurance coverage is mandatory as per the Indian Motor Tariff, but apart from being a compulsion, it gives you support in different situations based on the insurance plan. On this note, let’s start by understanding the types of bike insurance covers.
Types of Bike Insurance Plans
Broadly, the two-wheeler insurance plans are divided into three categories.
1. Third-party Insurance Cover
The third party cover is the basic insurance cover, which is at least to be owned by every bike owner to ride a bike in the nation. It gives coverage against liabilities which you may incur towards third parties or damages to their properties.
2. Standalone Own-Damage Cover
The Standalone Own damage is a bike insurance cover that gives you financial security to bear the expenses incurred due to any damage or loss incurred by your own bike in an accident or a mishap.
3. Comprehensive Insurance Cover
The Comprehensive insurance cover protects you against financial liabilities that you may incur towards a third party in addition to the damage expenses sustained by your own bike in an accident or any unfortunate event. With this cover, you can also choose several add-on covers to enhance your coverage.
Points to consider to buy an insurance policy
Here are some points which you should consider before making the purchase decision:
1. Know the Insured Declared Value (IDV)
The IDV is the present market value of your bike and the value which you will get as the amount of claim. Therefore, it is important to select an insurance plan offering the right IDV. The insurance providers charge a lower amount of premium for lower IDV, but picking a lower IDV for reduced premium may not get you a higher claim. So, pick the policy with sufficient IDV that suits your budget and requirements after comparing IDVs of different insurers.
2. Claim Settlement Process
Claim is the ultimate goal of having a bike insurance policy. After an accident or mishap, you would definitely like to get the claim from your insurer easily and swiftly. To get this benefit, you need to look for different features offered by insurers like self-inspection, digital claim process, and so on. You can also check the Claim Settlement Ratio of the insurance companies to find the level of their commitment and efficiency for claim settlement.
3. Premiums and Deductibles
Offers and discounts provided by different insurance providers can be compared to grab the best insurance deal. In addition to this, some insurers offer plans with compulsory deductible features as per which you are required to pay a compulsory deductible at the time of claim. However, some insurance companies offer a voluntary deductible option too, where you will have to pay a part of the claim at the time of claim settlement. These options are opted to decrease your monthly premium.
4. Add-ons and Benefits
You should always look for the benefits and add-ons provided by various insurance companies. Always opt for a plan with a range of add-on covers as you can opt for them to enhance your policy coverage. The insurer offering no or less add-on covers might not be able to help you in critical times, even if you are ready to pay more for that. Also, some general benefits of the insurance provider should be considered which may include doorstep pickup, repair and drop with 6 months warranty, 24x7 customer care support, and so on.
5. Network of Cashless Garages
Just like you always prefer to buy a bike or any other vehicle of a company which holds an extensive range of service centres across the nation, which helps you get your bike easily repaired. Similarly, it is recommended to select an insurance company which acquires a pan India presence so that you can easily avail of cashless services in case the need arises. Although, reimbursement can also be given on getting the bike repaired at a non-network garage, but it may take some time to reimburse your money and you will be required to pay the complete amount at the time of the repair.
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.