Considering the ever-growing traffic congestion due to the increasing number of vehicles, riders are often threatened with accident risks. Bike insurance policies are crucial to safeguard the finances of the owner in the event of unforeseen mishaps.
However, bike owners must keep certain factors in mind while choosing a two-wheeler insurance policy. Here is a complete guide on the dos and don’ts that a bike owner should be aware of to make an informed decision.
Dos and don’ts while buying bike insurance
The Motor Vehicle Act 1988 mandated a third-party bike insurance policy for every Indian citizen while purchasing a two-wheeler. Anyone found violating this law will be fined or put into imprisonment accordingly.
Thus, every responsible bike owner must purchase a favourable insurance policy as per their budget and preferences. However, a policyholder should not get misled while choosing the plan and keep a check on the following do’s and don’ts while buying a bike insurance policy:
Compare different bike insurance policies
Bike insurances are of three types: third-party, own-damage and comprehensive. A third-party insurance policy covers the policyholder against third-party losses and damages. On the other hand, a comprehensive bike insurance policy covers both the third party and the policyholder during an accident, theft, etc. The OD insurance covers damages done only to the bike owner and the bike.
Consequently, a comprehensive policy is costlier than a third party, and one must choose a policy considering their budget and requirement.
Have proper knowledge of IDV
IDV, aka Insured Declared Value, represents the current market value of one’s vehicle, and policyholders can customise it as per their choices. IDV directly affects the policyholder’s premium and sum insured. Therefore, having sound knowledge of IDV is advisable for a policyholder. Higher IDV will mean a higher sum insured and consequently higher premiums.
Check the add-ons
Comprehensive bike insurance policyholders can extend their insurance coverage by purchasing add-ons. For instance, if a policyholder buys a zero dep bike insurance cover, he receives a higher amount during claim settlement as the insurer wouldn’t be considering the depreciation costs.
Explore the inclusions and exclusions
Every policy comes with some inclusions and exclusions, and a smart policyholder must know what’s included in their insurance coverage and what’s not. For instance, accidents caused due to drunken driving do not come under insurance coverage. Therefore, a policyholder must read all the exclusions carefully before purchasing a policy.
Don’t ignore the policy terms and conditions
A policyholder should always read the terms and conditions carefully before purchasing a policy. Though this section contains detailed explanations and jargon that may confuse the insurance holders, they must go through the terms and conditions to stay secure from unpleasant surprises in the future.
A cheaper policy is not always a smart decision
Several online insurers compete to sell their policy at cheaper rates to attract buyers. However, not every insurance company offers adequate benefits and services at a cheaper rate. Thus, one must conduct a detailed survey before selecting the insurance company for their bike insurance policy.
Don’t delay filing a claim on time
Filing the insurance claim within the specified time ensures a policyholder receives the entitled benefits. If the claim is filed beyond the specified period, as mentioned by the insurer, it will be considered as a delayed claim.
Renewal should not be delayed
Renewing an insurance policy at the right time is essential to stay financially covered. Once the grace period expires, the bike is no longer under insurance coverage, and an insurer is no longer liable for damages. Therefore, renewing an insurance policy on time helps the policyholder stay protected.
Bike insurances are a must-have in today’s busy life, but purchasing a policy hastily can lead to reduced benefits. Therefore, a policyholder must stay aware of the mentioned factors while choosing a bike insurance policy.