Congratulations! You have bought a two-wheeler and now can go on all those cross-country trips you had dreamed of. But before you set off on your journey, or even take it out for a spin in your locality, there is a very important thing you need to consider – bike insurance policy. Getting bike insurance is a mandatory requirement for all two-wheeler owners according to the Motor laws in the country. To give you a better idea of the process ahead, read on to find the best tips to choose your bike insurance.
Types of bike insurance policy
There are three types of bike insurance policy available in India – Third party bike insurance, standalone own-damage bike insurance and comprehensive bike insurance policy
Third Party Bike Insurance is mandatory for every two-wheeler on Indian roads according to the Motor Vehicles Act of 1988. If the traffic police catch you without it, you can face fines and/or imprisonment. This type of bike insurance policy covers the cost of any damages to the third party – person or property in case of an accident.
Standalone Own-Damage Bike Insurance provides compensation for the cost of your own-damages – injury or bike damage in case of an accident. This type of bike insurance policy also offers benefits such as NCB (No Claim Bonus) and add-on covers.
Comprehensive Bike Insurance is a more inclusive type of bike insurance policy. It provides protection for both third-party liabilities and your damage costs in case of an accident. This type of bike insurance policy also offers a number of optional benefits in the form of add ons that you can use to further customize your bike insurance to your specific needs.
Factors you need to consider while buying bike insurance
Research About the Policy Coverage And Compare Plans
As you start your search for the best bike insurance policy, you first need to assess your specific requirements and budget allocated for the same. After this, you need to look through all bike insurance plans offered in the country. It is also important to check for any in-built benefits such as roadside assistance, cashless garages, towing facility, etc. the best way to do this is by visiting an insurance broking portal like Coverfox that has partnered with over 40 insurance providers and can help you compare plans with ease.
Determine Insured Declared Value (IDV)
Insured Declared Value (IDV) determines the present market value of your bike. This helps the bike insurance provider decide the maximum amount that is to be paid off by them in case of any mishap like theft or complete irreparable damage of your two-wheeler. The IDV reduces over time due to natural depreciation of the vehicle. This in turn, lowers the premium amount as well.
Also read: Know Critical Facts About Your Two Wheeler’s IDV
Select the Best Premium Rate for your needs
The premium amount of a bike insurance policy is extremely vital in the selection of your insurance plan. Premium amount is what you need to pay to the bike insurance provider to avail the benefits of insurance cover . This element should be clubbed with the IDV of your two-wheeler and the coverage provided in order to make the best selection of bike insurance policy for you.
Opt for Add-On Covers
Almost every bike insurance provider offers a set of optional benefits, or add ons as a part of their bike insurance policy. These add ons help in boosting the coverage of your bike insurance plan at the cost of a little extra premium. There are a number of add ons available, each serving a different purpose like engine protection, No Claim Bonus (NCB), protection against man made disasters and more.
Also read: Add-On Covers in Two Wheeler Insurance Policy: Are They Required?
Go through the Claim Settlement Process
This is the most important part of buying a bike insurance policy. Because, at the end of the day, you’re getting bike insurance so you can get assistance during your time of need. That is why you need to check for the Claim Settlement Ratio (CSR) which determines the rate at which claims are processed by the insurance provider.
Buying bike insurance is extremely crucial, which is why you shouldn’t opt for the first plan offered to you. Instead take head of the steps given above and your bike will be secured with less hassles. If you don’t want to do this by yourself, you can always head to an insurance broking portal like Coverfox, that has a team of insurance experts that can help you at every step of the way- from purchase to renewal.