Facts About 2 Wheeler Insurance Policies That You Must be Aware of Before Buying It

Two-wheeler vehicles are a common sight in the Indian landscape. Almost every household in India has a two-wheeler vehicle parked as it affords ease and convenience while driving through today’s congested traffic in addition to their affordability and relative inexpensiveness when compared to the car or other four-wheeled vehicles.

As road accidents became more pervasive resulting in more deaths and rising cases of permanent disabilities, the Motor Vehicle Act 1988 mandated the need to ensure every two-wheeler vehicle, thus, prompting the purchase of 2 wheeler insurance policies from insurers operating in the market. This means that riding a two-wheeler vehicle without it being insured can invite penalty or result in imprisonment too. Not many Indians are aware of the concept of insurance including 2 wheeler vehicle insurance and, hence, it is important to realize certain necessary facts about the same before choosing from various given options and paying for it accordingly.

Two Wheeler Insurance Policies Facts That You Must Know Before Purchasing It

These include:-

1. Many people opt for the third-party liability cover to save on paying extra on insurance premiums. However, it is worthwhile to buy a comprehensive plan that includes the mandatory cover in addition to enhanced protection for the two-wheeler vehicle owner. In addition to securing against all the losses caused to the third party involved in the accident, it also covers against damages caused to the vehicle of the policyholder.
2. Most people avoid opting to pay for add-on covers like roadside assistance cover, zero depreciation cover, Engine, and Electronic Circuit cover, Return to Invoice cover, Personal Accident cover, and Key Replacement cover among others. Lack of awareness about these covers and their significance in the long run results in many people ignoring their importance. Paying for these covers ensures additional coverage and are available only if one opts to pay for a comprehensive plan. The debate between 2 wheeler insurance comprehensive vs the third party is common.
3. Just because add-on covers provide additional protection, it does not mean that you must opt for all of them. Be selective in making a choice of your add-on covers and pay for the ones that meet your requirements and add value to your policy.
4. Just because you have procured your first 2 wheeler insurance policy from the dealer who had sold you the vehicle, it does not imply that you need to depend on the same for renewal of your policy. With so many insurers sharing the details of their 2 wheeler vehicle insurance products along with price details and online insurance web aggregators sharing information on their sites, customers have a lot of options to choose from, be it buying a new insurance policy or renewing their old one.
5. Instead of choosing an insurance product blindly, it is advisable to look up the web for necessary details and purchase accordingly. Buying insurance online surely has its own advantages compared to when you buy the same offline through an agent.
6. There are many insurers who offer a lot of benefits in the comprehensive insurance product they are offering. This means that customers need not pay for add-on covers that are already being made available by the insurance companies in their insurance product. Read the product carefully, check for the kind and extent of coverage being offered and buy accordingly.
7. Many customers are apprehensive regarding the claim settlement process in case of insurance products bought online. However, this is not the case. The web has made many things easier, which means that both purchase, claim settlement and renewal of policies can be done with just the click of a button. Also, buying online does not involve any involvement of middlemen, which further decreases the premium rate.
8. Though the price is an important consideration while determining the 2 wheeler insurance one would like to buy, it is surely not the most important factor while choosing it as premiums charged by different insurers corresponding to the myriad benefits that they provide. While comparing the insurance plans online, make sure that you compare the features of each plan along with their corresponding prices.
9. It pays to drive well. This holds true while paying premiums for 2 wheeler vehicle insurance plans too. As a policyholder, you are entitled to No Claim Bonus (NCB), i.e., discounted premiums while renewing your old policy. However, you must check if the plan you have chosen includes this benefit, thus, making you eligible for it in the long run.
10. Customers often do not understand the meaning of jargons like the Insured Declared Value (IDV) of the vehicle. Also, understood as the approximate current value of the vehicle which is calculated by deducting the amount of depreciation from the market value of the vehicle, this amount determines the premium you must pay on your 2 wheeler vehicle insurance policy.
11. Invest in anti-theft devices. Securing your two-wheeler vehicle by installing in anti-theft devices helps as these not only protect your vehicle from getting stolen but avail you the benefit of buying insurance policies at discounted rates.

The 2 wheeler insurance rules are similar across most insurers. One just needs to look at the rates charged by them and the benefits they offer corresponding to the charges. Insurance is not a novel concept. In fact, it has been in place for many years. However, in most cases, it also lacks an understanding of the concept and disinterest to comprehend the terms that result in people buying the wrong kind of policy.