A Safety Net For Your New Ride- Buying the Right Bike Insurance

 

Have you bought a new two-wheeler? Congratulations! Bringing home, a new ride companion calls for a celebration as it comes bundled with thrills and a rush to immerse oneself in the depths of exploration. Make sure to first purchase the safety net of bike insurance along your two-wheeler so that you can embark on enthralling road trips or casually wander off in your local streets worry-free.

Two-wheeler insurance is a shield that protects you from any unforeseen mishaps. In India, specifically, having at least third-party bike insurance is mandatory by law. But beyond legal compliance, it is advisable and wise to have a comprehensive bike insurance plan that safeguards you and your two-wheeler against any personal and third-party damage.

Let’s take a trip down the lanes of bike insurance and demystify the questions around it.

 

Types of Bike Insurance Plans in India

Third-Party Bike Insurance: This insurance plan, also known as ‘act-only’ insurance, is the mandatory coverage required by law as per the Motor Vehicle Act. It covers any injuries or damage caused to a third party (person or vehicle) during an accident. In simpler terms, if you accidentally bump into another car or injure a pedestrian, this insurance will take care of the financial compensation.

Own Damage Bike Insurance: This plan offers protection against any damage to your bike. This insurance plan will, however, not cover you or any third-party liability. You need to purchase the third-party bike insurance plan separately as a legal obligation.

Comprehensive Bike Insurance: This is a bundle insurance plan. It includes third-party liability protection along with coverage for your own bike in case of any natural or man-made disaster. It offers broader coverage as compared to third-party or own-damage two-wheeler insurance.

 

Finding Your Perfect Fit:

Now that you're familiar with the options, it's time to find the perfect bike insurance plan for your new ride. Here are some key factors to consider:

• Consider Your Bike's Value: The IDV (Insured Declared Value) is the maximum amount that the insurance company will pay in case of theft or total damage to your bike. Ideally, the IDV indicates your bike's current market value. 

Here's a tip: Don't under-insure your bike to save a few bucks on the premium. An under-insured bike means you'll get a lower payout in case of a claim.

• Third-Party vs. Comprehensive: While third-party insurance is mandatory by law, a comprehensive plan offers better coverage and peace of mind. If your bike gets stolen or sustains damage in an accident, comprehensive bike insurance will compensate for the repair cost and also cover third-party loss and damage.

• Add-on Covers: These are optional riders that you can add to your basic policy for additional protection. Popular add-on covers include:

  • Loss of key protection

  • Consumable cover (engine oil, lubricants)

  • Zero depreciation cover (protects against depreciation on your bike's value during claim settlement)

  • Towing charges cover

Carefully evaluate your riding habits and choose add-ons that enhance your coverage and provide the most value. Remember, you only pay for what you need.

• Compare Quotes: Don't just settle for the first plan you come across. Get quotes from different insurance companies to compare coverage options and premiums. Choose the plan that gives you maximum protection and also fits your budget well like one from IFFCO-Tokio.

• Read the Policy Wording Carefully: Save yourself from the last-minute stress and don't get caught off guard by the exclusions or terms and conditions of your bike insurance plan. Read the policy document thoroughly to understand what's covered and what's not. Pay close attention to exclusions related to specific types of accidents, geographical limitations, or wear and tear.

• Check the Claim Settlement Ratio: This ratio indicates the percentage of claims settled by the insurance company. A higher ratio signifies a higher likelihood of your claim being approved without any hassle.

   

Safety and Savings with Bike Insurance Plan 

Buying the bike insurance plan as per the coverage requirement is necessary. But something equally important is to consider the cost of the bike insurance premium. There are certain parameters that can help you save on the premium cost.

• No Claim Bonus (NCB): You can enjoy certain discounts on the premium cost with the No Claim Bonus. You basically get rewarded for making no claim during the policy period. The more years pass by without filing for a claim, the higher will be your discount (maximum 50% discount).

• Increase Your Deductible: A deductible is the amount you pay upfront before the insurance company steps in. Opting for a higher deductible can lower your premium. However, strike a balance; you don't want a sky-high deductible that leaves you financially strained in case of a claim.

   

Ride with Confidence:

Owning a bike is a thrilling experience. Don't let unforeseen circumstances dampen your spirit. By choosing the right bike insurance plan, you're creating a safety net that protects your precious ride, your finances, and ultimately, your peace of mind. Now, get out there, explore the world on two wheels, and create unforgettable memories – with confidence and a smile!

 

Disclaimer: The content on this blog is for informational purposes only and should not be considered as professional advice or any form of opinion. Please go through policy related documents carefully or consult with a qualified professional before making any decisions regarding insurance or financial matters.