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Tips to Choose The Best Two Wheeler Insurance Policy

Published On Aug 18, 2020 5:30 AM By Gunjan

Purchasing bike insurance but don’t know what to look for? In this article, we have put together tips to help you make an informed decision in this regard.

Two-wheelers are one of the most popular modes of transport in India. To drive a two-wheeler is convenient because you can easily ride through traffic at affordable prices, but it also exposes you to the risk of accidents and mishaps, which may impose unwanted and unbearable expenses on you. Hence, owning two-wheeler insurance is highly recommended to enjoy the ride without any worry. The third-party insurance cover is obligatory, which gives you coverage against the financial liabilities of a third party. However, it is also advisable to think about the cost of own-damages in a mishap, hence, in addition to the compulsory third party insurance, it is advisable to purchase a standalone own-damage cover or a comprehensive insurance plan that will cover both aspects under a single premium in a hassle-free manner. These plans shield you against the accidental damages sustained by your two-wheeler. When purchasing two-wheeler insurance, it is simplest to do it online. That way you can easily compare the different bike insurance companies, the quotes they offer and check their network of cashless garages. But with so many options, it can be hard to decide. Therefore, in this article, we have put together some tips to ensure you make an informed choice when purchasing insurance for your two-wheeler.

How to Choose The Right Two-Wheeler Insurance Policy?

While buying a two-wheeler, you consider various factors like looks, mileage, cost, etc., similarly, you should choose the right insurance cover for your two-wheeler by going through several aspects. It is essential to determine an insurance policy on elements that helps you meet your needs in the best way. Here are some important tips to assist you to select an insurance cover as per your budget and requirements:

1. Know About the Policy Coverage

Before beginning to search for an insurance cover, it is crucial to make an assessment based on your requirements and budget. A comprehensive insurance cover is considered the best two-wheeler insurance policy as it covers the compulsory third-party liability cover as well as the own-damage cover. Also, verify if the policy is offering any in-built benefits such as roadside assistance, towing facility, etc. The broader the coverage will be, the better the plan will be.

2. Consider the Insured Declared Value (IDV)

Insured Declared Value (IDV) denotes the present market value of your two-wheeler. It is the maximum amount that is to be paid off by the insurance provider in case of theft or total loss of your two-wheeler. With time, the depreciation lowers the IDV with which the premium amount decreases too. Hence, IDV is a significant point as it determines the premium and compensation amount of the insurance plan.

3. Select the Best Premium Rate

The premium amount is one of the most crucial parameters on which you should select bike insurance covers. It is the amount you have to pay to avail the benefits of insurance cover. Hence, its amount should be bearable by you. However, the cost of premium should not be considered alone and must be considered along with the IDV and coverage of the policy. In general you should opt for a policy which promises high IDV, inclusive coverage at competitive premium price.

4. Know About the Add-On Covers

Bike add-on covers assist in enhancing the coverage of your bike insurance plan by paying a little extra premium. Hence, comparing the add-ons available in different plans is always advisable. Also, look for the add-on covers required by you as otherwise the plan might disappoint you. Besides, it is also recommended to compare additional premium payable for the add-on under different insurers. The lower the premium will be, the better the insurance cover policy would be.

5. Look for the Discounts Allowed

Consider different discount offers provided under the insurance plan and select a policy that promises to give the highest rate of discount, which can reduce your premium considerably. Some common types of discounts available under different insurance covers are no claim bonus, voluntary deductible, and so on. An insurance plan with the highest premium rates should be chosen by you.

6. Understand the Claim Settlement Process

Nowadays, several insurers have introduced simple, swift and smooth claim settlement processes through video and image uploads. These plans are considered the best as they ensure quick and hassle-free claim settlements. Ensure this by finding out the claim turn-around-time (TAT) of the insurer which denotes the average time company takes to settle a claim and check the claim settlement ratio (CSR) of the insurer which signifies the maximum number of claims settled by the insurer in comparison to all the claim requests received by it in a financial year. Opt for a plan with lower TAT and higher CSR.

What are the Types of Two-Wheeler Insurance?

When purchasing two-wheeler insurance, also keep in mind, there are three main types of insurance available in India based on the coverage they provide:

  • Third Party Insurance: This is a compulsory cover for every two-wheeler riding on Indian roads according to the Motor Vehicles Act of 1988. If caught without it you can be fined Rs. 2,000 and/or be imprisoned for up to 3 months. It covers the cost of the third party liabilities in case of a mishap, including bodily injuries, death and property damage.
  • Standalone Own-Damage Insurance: This type of cover is not compulsory however is a prudent choice if you prefer to err on the side of caution. The cover provides compensation for the cost of own-damages in case of a mishap. You can also receive NCB and purchase add-on covers with this type of insurance.
  • Comprehensive Insurance: This type of insurance covers both third-party liabilities and own-damage costs in case of a mishap. Additionally, it provides both under a single premium and you can purchase add-on covers and be eligible for NCB under this type of insurance.

Add-On Covers: These are additional purchases that you can make to further strengthen your two-wheeler insurance. Add-on covers provide flexibility to the insurance policies, allowing people to mould them to their specific needs. Some useful add-on covers you can check out are the Zero Depreciation Cover, the Roadside Assistance Cover, the Engine Protect Cover and the Return to Invoice Cover.

When purchasing two-wheeler insurance you can now purchase your third party insurance from one company and own-damage cover from a separate company or purchase them under a single premium and single insurance provider with a comprehensive insurance plan.

To Conclude

Always keep the above-mentioned points in mind while making the purchase of two-wheeler insurance. Considering these points would make it easy for you to choose the best policy for your two-wheeler vehicle without fail.

Also Read

Documents Required For Two Wheeler Insurance Claim Process

Discounts On 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.

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