Bike insurance is mandatory to protect your vehicle. Besides, protecting the vehicle, it will also cover personal accident and third-party damages.
A third-party bike insurance policy is essential as per the motor vehicle act, 1988. It is a punishable offence to ride a bike on public roads without a valid bike insurance plan. Hence, you should buy either third-party or comprehensive insurance plan as per your requirements. There are different ways to buy bike insurance. You can choose the best way to fulfil your needs.
Different Ways in which you can Buy bike Insurance
You should explore the best options to buy the most appropriate bike insurance plan as per your needs.
Third-party insurance plan
The third-party liability insurance plan is a basic insurance plan which will fulfil your legal requirements. If there is another third-person involved in the accident, the insurance policy will give the protection.
The damage of the third-party vehicle, third-party property and third person will be protected by the insurance plan. It is the most cost-effective insurance plan. The insurance company will issue the insurance plan as per the policy guidelines of the regulatory body, IRDAI. The guidelines will be revised on annual basis.
- Third-party person injury or death due to the negligence of the insured person
- Third-party vehicle or property which is injured by the insured’s vehicle
- Injured caused to the insured by himself
- Damage caused to the owner’s vehicle
- Theft of the vehicle or personal belongings
- Riding the bike without a valid driving license
- Driving the bike under the influence of drugs or alcohol
Comprehensive insurance plan
It is the best bike insurance plan that you can purchase to fulfil your insurance requirements. The vehicle will cover the rider as well as the third-party. Even though the insurance premium is high, the comprehensive plan will protect your financial interests to the maximum potential extent.
The comprehensive bike insurance policy covers various risk factors including fire, theft, vandalism, flood, windstorm and hail storm. It will cover third-party liability as well.
- Offers many features and better protection than the third-party insurance plan
- Theft of the insured vehicle
- Damage to the vehicle
- Covers natural disasters such as floods, fire and storms
- Covers manmade disasters such as terrorism and violence
- General wear and tear of the vehicle and spare parts
- Mechanical or electrical breakdown of the vehicle
- Damage to the vehicle under the influence of drugs or alcohol
- Intentional damage to the vehicle
- Self-inflicted injuries
- Driving the bike without valid bike insurance
- Damage of the vehicle outside the borders of the country
The insurance premium is the important aspect which helps in getting the risk covered by the insurance company. You should take steps to reduce the insurance premium without compromising on insurance benefits.
Hence, you should be aware of the factors which influence the bike premium:
Type of insurance policy –Based on the type of insurance policy, the insurance company will charge the premium. If you are buying a third-party bike insurance policy, the premium will be very low. On the other hand, you should pay a higher premium for a comprehensive bike insurance plan.
- Subscription of add-ons – You can opt for various add-ons by which the insurance premium will increase. The add-ons include ‘nil depreciation’ cover, pillion rider cover, etc.
- Type of vehicle – The type of vehicle will also influence your insurance premium. Sports and luxury vehicles will attract a higher insurance premium. If the engine volume is high, the insurance premium will also be high. Hence, you should think about the insurance premium before buying a new or used vehicle. If you are renewing an old vehicle, the insurance premium will higher than the insurance for a new vehicle. The risk with the old vehicle will high and the insurance company will charge a higher premium.
- Security-enhancements – The security-enhancements that you attach to the vehicle will help you in cutting down the premium. The installation of special security locks and alarms on the vehicle will convince the insurance company that the possibility of being stolen will be low.
- Higher deductible – If you agree for a higher deductible, the insurance premium will come down. However, you should not forget the fact that the insurance company’s liability will decrease when you opt for a higher deductible. Hence, you should take the decision about deductible judiciously.
- Age of the rider – The age of the insured (or rider) will influence the insurance premium. If your age is less than 20 years, you will want to pay a higher insurance premium. The insurance company perceives that the risk with younger population is higher than the risk with the older population.
- Location – The location will also influence your vehicle’s insurance premium. If you ride your vehicle in cities, there will be high traffic and the risk will be high. On the other hand, the risk will be low in rural areas.
No-Claim Bonus (NCB) is a bonus offered by the bike insurance company. If you had not claimed the policy in the previous policy year, you will get a no-claim bonus.
The NCB will be applied at the time of the renewal of the insurance policy. The NCB will be in between 10% and 50% of the insurance premium. To take advantage of the NCB, you are advised to avoid small claims. If the worth of a claim is few hundred rupees, you can forego the claim.
As you claim the insurance policy, the renewal insurance premium will increase. The insurance company will perceive that the risk factor with your vehicle is a claim when you make claims on a regular basis. Hence, you should make claims judiciously so that you will not pay a higher premium.
Also Read: Where Is Auto Finance Most Accessible
Policy renewal before the due date
You should renew the insurance policy before the due date. If you renew the policy at least one month before the expiry date, you will get a special discount on the insurance premium.
If you renew the policy after the due date, you will lose some benefits extended by the insurance company. The insurance company will offer a no-claim bonus if the policy is not claimed in the previous policy year. However, the NCB will not be applied if you renew the policy after the due date.
By renewing the two-wheeler insurance policy before the deadline, you will not want to bring your vehicle for an inspection.
Comparison of bike insurance policies
If you compare the bike insurance policies offered by various insurance companies, you will settle for the best policy without any issues. The following factors can be assessed by comparing various two-wheeler insurance policies:
- Cashless treatment – The insurance company will manage a network of garages spread across the country. Hence, you should buy a policy from a reputed general insurance company. when you are met with an accident, you can inform the insurance company and avail cashless facilities.
- Reputed insurance company – A well-established insurance company will be able to offer various kinds of insurance policies. You will be able to customize the policy as per your needs.
- Roadside assistance – The road-side assistance offered by the insurance company will help you overcome the prevailing issues on the road. If you are involved in an accident, the insurance company will come to your rescue. The team from the insurance company will help in moving your vehicle to a safe place.
- Customer support – The insurance company should offer the best customer support. Most of the insurance companies offer support by phone or email. Your queries will be answered by the dedicated helpline.
- Claim settlement ratio – You should go through the claim settlement ratio of the insurance company. You should choose a policy from an insurance which manages the highest claim settlement ratio.
- Choose higher IDV – You should opt for higher IDV (Insured Declared Value). It is the value which indicates the level of compensation paid by the insurance company. The insurance company’s liability will not be more than the IDV mentioned in the insurance policy. If your vehicle is stolen or damaged beyond recognition, the insurance company’s liability will be up to the IDV value. Hence, you should verify the IDV mentioned by the insurance company.
- Online insurance policy – You should have access to verify your two-wheeler insurance policy online. Most of the insurance companies offer the online facility to buy a new vehicle and renew a vehicle as per your needs.
- Insurance calculator – You should use the online insurance calculator to calculate the premium in a very efficient manner. you can compare quotes from various two wheeler insurance companies and it is possible to make an informed decision.
Before buying a vehicle insurance plan, you should weigh various options. You should be aware of your insurance needs. After comparing the available insurance products in the market, you should choose the best plan as per your make and model of the vehicle. By opting for a long-term bike insurance plan, you can cut down the insurance premium drastically.