5 Things to Know About Before Buying a Two-Wheeler Insurance Policy
The law makes it a norm to have bike insurance policy for all registered two-wheelers in the country. Besides buying your bike, the insurance policy is something you need to decide upon. Considering its importance, the regulator, Insurance Regulatory and Development Authority of India (IRDAI) makes it mandatory to purchase a long-term policy for five years at the bare minimum. You can visit the official website of IRDAI for further details. With so much emphasis on having a bike insurance plan, here are five things you must keep in mind before buying a policy.
It is prudent choice to opt for a wider coverage
Bike insurance policies are available in two types of plans—a third-party cover or a comprehensive cover. While a third-party plan is the bare minimum insurance policy you need to buy, it offers limited coverage. Such coverage is restricted to the liabilities that arise due to injury to a third-person or its property damage. However, a comprehensive policy is that which offers an all-round protection. Using such comprehensive plan, you can ensure protection for the damages to your bike. A wider coverage in the form of a comprehensive policy saves a lot of money at the time of repairs and hence, must be preferred over a third-party plan. *
Add-ons are worth the extra price
Comprehensive policies while offering protection for own damages, also offer an option to enhance the coverage using the add-on covers. Add-ons are those policy coverages which can be purchased in addition to the standard comprehensive plan. These add-ons help to overcome the limitations that are otherwise limit the scope of your insurance policy. Hence, add-ons are a smart way to ensure additional coverage is available and are worth the increase in bike insurance price. *
Be choosy about add-ons
Insurance companies offer many different add-ons. While you can purchase all of them, it may not necessarily be useful. In addition, buying all add-ons will significantly increase the premium of your policy and thus, you need to be picky in which add-ons you must buy. For instance, you reside in a flood-prone region and an engine protection cover can be especially handy to tackle problems of water ingression. Similarly, evaluate which add-ons will benefit you and only then buy them. *
Comparing different plans will save you money
Comparison is the key to not just buying bike insurance, but for any purchase decision. Comparison of insurance plans helps to evaluate how each policy differs and then making a choice based on your need. The policy coverage, claim settlement ratio, spread of network garages, add-ons available are some of the considerations that can help decide which policy to select. Using a two wheeler insurance premium calculator, you can instantly compare the policies not only based on premium, but also its features. *
Save your no-claim bonus
No-claim bonus or NCB is the renewal benefit offered by insurance companies that help to lower the insurance premiums. However, such bonus is available only when a claim-free year has passed. Thus, the benefit of NCB is realised at your bike insurance renewal. If you raise a claim during the policy period, such NCB benefit nullifies thereby offering no renewal benefits. So, make sure to avoid unnecessary claims for minor repairs. *
* Standard T&C Apply
These are top five tips things that you must know when buying an insurance plan as it help to make a robust choice of insurance coverage. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.