Irrespective of make and model, bikes can incur damages from an unfortunate accident like all other vehicles. Repairing such damages can cost a fortune and increase financial liability. Considering this, one should obtain bike insurance policies from reputed insurers.
A well-rounded two-wheeler insurance policy covers the cost of damages caused to a motorcycle involved in an accident. In addition, it comes with a host of other benefits based on an insurance provider. However, it is vital to consider certain do’s and don’ts while buying an insurance plan.
To that end, here is a list to follow.
While choosing a bike insurance plan, potential buyers must follow the below-mentioned points:
1. Know the types of insurance and choose the one you need to buy
Before purchasing an insurance plan for a bike, one should possess knowledge regarding the types of plans available in India. Typically, there are two types of insurance plans- third-party and comprehensive. A third-party bike insurance policy provides coverage against third-party damages.
Alternatively, individuals must obtain a comprehensive plan for overall coverage against both third-party and own car damages. However, this plan costs more than the basic third-party policy, as the former comes with an extended coverage limit.
Further, as per the Motor Vehicles Act, 1988, every vehicle owner must obtain at least a basic third-party insurance plan to avoid huge traffic fines.
Hence, after knowing the details of both the plans, one can choose an appropriate policy as per requirement and enjoy the benefits that come with it.
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2. Include add-ons
A comprehensive insurance plan for a bike might not provide complete coverage. Considering this, insurers offer add-on benefits. One can benefit from the add-on policies under his facility against additional charges. Thus, it is imperative to choose add-on policies as per an individual’s requirement and pay only for the one included over and the base plan.
Some of the add-on policies to purchase are:
- Roadside assistance
- Consumable cover
- Zero depreciation cover
- Return to invoice cover
- Tyre protection cover
One can choose from the aforementioned add-ons and include them over and above the existing plan by increasing the premium amount nominally.
3. Understanding IDVs
Insurance providers offer a return value during bike damages beyond repair or in the event of theft. This value depends on the bike’s Insured Declared Value (IDV). An IDV is also the difference between a bike’s depreciation and the manufacturer’s selling price. Insurers calculate the policy premium based on this value.
Understanding this IDV will allow individuals to opt for maximum benefits on their insurance plan. Some insurance companies also give the option to customise a bike’s IDV. In such a scenario, one can choose an appropriate IDV and expect maximum returns.
4. Know the inclusions and exclusion
Knowing everything about a policy’s inclusions and exclusions helps an individual to enjoy coverage benefits in a hassle-free manner. One must compare several insurance plans in terms of their inclusion and exclusion to choose a plan that comes with maximum coverage.
Furthermore, not all plans will cover damage repair costs concerning a bike’s intricate parts. Individuals can always opt for add-on benefits by paying a higher insurance price to get an additional layer of protection.
Other than this, one should consider insurers offering a higher percentage of No Claim Bonuses and other bonuses on an insurance plan. A No Claim Bonus (NCB) is a discount on policy premium offered during policy renewal only if a policyholder maintains claim-free years within their policy term.
When it comes to purchasing a new two-wheeler insurance policy, there are some red flags one should avoid at any cost. It will help maximize the benefits and have a seamless experience throughout a policy term. Here are pointers to avoid while buying an insurance plan:
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1. Do not go for cheaper covers blindly
Cheaper insurance premiums might attract potential buyers but can result in missing out on essential covers that can otherwise increase their financial burden. Thus, it is mandatory to make a lot of consideration before settling for lower premium rates.
Additionally, cheaper insurance covers can have a higher deductible associated with it. A deductible is a sum paid out of a pocket during the insurance claim process. Individuals must only go for a high deductible plan if only they are sure to raise fewer claims against their insurance policies.
2. Do not forget to renew policies on time
Ideally, one should renew a motorcycle insurance policy within 90 days of policy expiry. It is known as the grace period. Renewing a policy during this period will allow a policyholder to obtain the accumulated No Claim Bonuses. After this period, individuals renewing their policies need to purchase a fresh policy without any benefits from scratch.
However, one must make it a practice to renew policies before it expires. It will reduce the chances of claim rejection. Further, insurers offer additional discounts to individuals renewing policies before expiry.
3. Do not delay in making claims
Policyholders must not make any delay while filing claims against their insurance policies to opt for a smooth claim process. Any delay in the process can result in the rejection of claims because an insurance provider fails to detect the extent of damages if a given time window expires.
Furthermore, insurers might fail to contact the third party if the claims are filed later. Making quick claims also helps an insurance company to screen through fake claims.
On an ending note, insurance policies for bikes are an effective way to reduce financial and legal liability. Nevertheless, individuals must follow the do’s and don’ts that are mentioned above for an exceptional buying experience.