Bike Insurance 811 views April 10, 2021

While purchasing a new bike, we look at its mileage, cost, design, etc. Similarly, it is crucial to buy the right bike insurance by doing some due diligence. Bike insurance protects individuals’ finances in case of any loss or damage to the two-wheeler due to an accident. Also, as per the Motor Vehicles Act, 1988, it is mandatory for all bike owners to have valid insurance for the two-wheeler. Driving without it is a punishable offense according to law.

To choose the right bike insurance, you should have an understanding of its different aspects. Here, we will be discussing a few simple tricks by which you can make the most of your bike insurance. So, if you are going to buy an insurance plan for your bike, this page can help you choose the best one. Let’s start!

How to Choose the Best Two-wheeler or Bike Insurance Easily?

Considering the popularity of two-wheelers in India and the unwanted financial risks attached to it, it is necessary to choose bike insurance so that you can ride without any worry. However, you should look at the following factors before purchasing the right bike insurance policy for yourself. Have a look!

Types of Bike Insurance and Coverage Requirement

The first and foremost aspect of bike insurance is to understand the types of two-wheeler insurance and choose according to your coverage requirement. Insurance companies mainly offer two types of bike insurance – Third-party Liability Insurance and Comprehensive Insurance. If you want to cover damage or losses caused to a third party (person or property) as well as your damage (natural calamities, theft, burglary, damage caused during travel, etc.), choose a comprehensive insurance policy. Whereas third-party liability insurance provides coverage against liabilities caused by a third party. Assess your coverage requirements and affordability to select the suitable type of bike insurance.

Understand Insured Declared Value (IDV)

With your bike insurance policy, the insurer compensates the amount in case of theft or loss of your two-wheeler. This amount is known as Insured Declared Value (IDV). Simply put, IDV denotes the present market value of your bike, and the insurer will pay up to a certain limit. Do remember that as time progresses, the IDV of your bike decreases due to regular wear and tear, and so does the premium amount. So, keep an eye on the IDV of your bike when choosing the two-wheeler insurance.

Claim Settlement Ratio and Turnaround Time

Claim settlement ratio (CSR) denotes the ratio of the number of successful claims settled by an insurer out of total claim requests received in a financial year. Choose an insurance company with a higher CSR to enjoy a hassle-free and successful claim process. Apart from this, you should also check the turnaround time (TAT) of an insurer regarding the claim request. Ensure that your insurance company has the lowest TAT.

Affordability of the Premium Amount

When choosing suitable bike insurance, choose the affordable premium amount according to your budget. You should also consider the IDV and coverage of the policy when considering the premium amount of a policy. A policy with higher IDV, comprehensive coverage and an affordable premium can be the right choice for you.

Avoid Raising Small and Unnecessary Claims

Insurance companies offer No-Claim Bonus (NCB) up to a discount of 50% on the premium (at the time of renewal) if a policyholder does not claim during the previous policy year. So, if you file small or unnecessary claims, you can lose the opportunity of getting the NCB benefit. As a result, you may end up paying a higher premium towards your bike insurance.

Renew your Bike Insurance on Time

Do remember that if you do not file a claim in the previous year, the NCB benefit is valid for a maximum of 90 days from the due renewal date of your bile insurance. So, if you do not renew your bike insurance on time, you may have to pay a higher premium amount.

Choose Add-ons to Enhance your Overall Coverage

Choose an add-on cover to make the most of your bike insurance. You will need to pay an additional premium apart from the basic premium amount to get an add-on. Some of the popular bike insurance add-on covers are Zero Depreciation Cover, Roadside Assistance, Consumables Cover, Engine Protection Cover, and Return to Invoice Cover. Choose the suitable one according to your needs.

Install Anti-theft Devices

If you install security-enhancing gadgets like anti-theft devices to your two-wheeler, insurers provide a discount on the premium amount for your bike insurance. However, ensure that these devices should be approved by the Automotive Research Association of India (ARAI), otherwise you will not get a discount.

Choose Higher Deductible Percentage

A deductible is an amount that policyholders need to pay from their own pockets in case of a claim as the insurers do not bear the entire cost of repair. If you choose to pay a higher deductible, the premium amount will be lower. So, if you can pay a higher percentage during the claim, choose a higher deductible.

Buy Bike Insurance from the Same Insurance Company

If you purchase your two-wheeler insurance plan from the same company where you have purchased your health insurance or life insurance or travel insurance or car insurance, you may get a discount on your premium amount. However, you should see if the policy provides you the desired coverage or not.

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