Renewing and buying a two-wheeler insurance policy is a rather easy task. Most policy applications in India get easily approved. Application rejection is a rarity. However, there are certain mistakes that policyholders make that could get their policies rejected or suspended. The Government of India has made it mandatory for all two-wheeler riders/owners to possess a valid third-party liability and personal accident cover. So, it is advisable to get your insurance policies in place to avoid hefty fines or other punishments.
We have put together some of the common mistakes to avoid when it comes to two-wheeler insurance. This would help you ride through the various aspects of two-wheeler insurance with ease. Read further to know more.
Few Mistakes to Avoid When it Comes to Bike Insurance
Transfer of Ownership
It is a common practice among Indians to buy or own a second-hand vehicle, especially two-wheelers. While the new owners get the ownership of the bike transferred, they tend to forget the insurance policy. It is important to transfer the ownership of the insurance policy, in order to keep the insurance policy active. In cases where the existing policy has expired, or you’d like to start afresh, you could get a new policy altogether. Failing to do so will be a violation of the law and will leave you vulnerable to any road mishaps. So, get the ownership transferred to avoid penalties.
It is natural for us to get the year wrong on applications or another documentation post the new year. Similarly, we could also forget some of the new changes like the address of a new home, a change in name/surname, or getting the spelling or phone number wrong. Though this might seem like a silly mistake, this could cost when it comes to insurance policies. So, it is of utmost importance to ensure that you double-check each and every detail listed in the application to avoid application or claim rejection.
Add a Nominee
An accident can take a toll on the physical and mental well-being of not just the victim, but also their loved ones. However, with an insurance policy in place, it will take away the additional stress of financial burden. But your policies are no good if you forget or fail to add a nominee in the application form at the time of purchasing the policy. This could put your family in additional distress during dire hours. So, add a nominee and keep them protected.
Apart from the above-mentioned ones, there are other common mistakes that could land you in trouble. Some policyholders determine a lower IDV to reduce the premium. Though this might seem like a prudent decision, it really isn’t wise and could come back to bite you, especially if the cost of the repairs is higher than your declared IDV. Also, your insurance policies can get you in trouble, when you fail to disclose any requested related information or disclose incorrect information. This can lead to both application or claim rejection and land you in legal trouble. So, be extra careful when you get a new policy or file your claims to ensure complete safety.