Buying bike insurance is a mandatory requirement for all bike owners in India. With a plethora of plans available in the market, choosing the right cover can be overwhelming. Here are a few tips for investing smartly and getting maximum protection.
In India, bikes are one of the most popular means of transport. Two-wheelers not only help you breeze through the traffic but also are much easier to maintain than cars. But, on the flipside, bikes are also exposed to accidental risks. Research suggests that nearly 80% of the road accidents that occur in India involve a two-wheeler.
Hence, if you are a bike owner, you must buy a robust two-wheeler insurance policy to protect yourself from accidental damages.
Today, many insurance companies in India offer various bike insurance plans to suit people's varying needs. If you are a first-time bike insurance buyer, choosing the right policy can be overwhelming as there are many factors to consider. To help you choose the best plan and get maximum protection, we list down a few smart tips:
Choose the right type of bike Insurance
In India, bike insurance policies are broadly classified as – Third-party insurance and Comprehensive Insurance. The insurers offer different types of bike insurance plans under each category. For example, HDFC Ergo gives you a choice of four plans.
Third-party insurance is mandatory under the Motor Vehicles Act, and it is the most basic form of insurance. It offers financial protection only against the damages caused to the third-party vehicle. It does compensate for the damages to your vehicle.
A comprehensive bike insurance policy, on the other hand, provides much wider coverage. It offers financial protection against damages to your vehicle and covers third-party liabilities. The premium for a comprehensive policy is more expensive than third-party insurance, but it minimises your liabilities in the event of an accident.
When you buy bike insurance online, you must determine your needs, asses the features of the plan and choose the right type of policy to suit your needs.
Choose the Add-ons Carefully
The add-ons, which are also commonly referred to as riders, are additional coverage options that you can purchase to widen the coverage. The insurers offer a wide variety of add-ons, and as a first-time policy buyer, you may be tempted to buy many add-ons. But, remember, each add-on comes with a price, and it increases your premium.
So, when you buy a policy, you must be careful with the add-ons selection. For example, if you are sure that you will use the bike alone, it does not make sense to purchase a pillion rider cover. But, it would be wiser to buy an engine protection cover so that you get full compensation for any damages that may occur to the engine.
Understand the IDV of the vehicle
The IDV or Insured Declared Value of the vehicle is the maximum amount the insurer pays if the bike gets damaged beyond repair or stolen. The insurance companies determine the IDV when purchasing the policy, and it is determined based on the showroom price of the vehicle.
Experts recommend getting the IDV evaluated from a third-party source and not solely rely on the insurer's evaluation. This way, you will get maximum compensation in the event of total loss or theft of the bike.
Be Wary of the Insurer's Claim Settlement Ratio
Not many bike insurance policy buyers realise the importance of the insurer's claim settlement ratio. The CSR is calculated in percentage, and it reflects the number of claim requests the insurance company has settled successfully against the number of claims received in a year.
Generally, the reputed insurance companies have a high CSR. You can easily find the claim settlement ratio of the company on the IRDAI website. So, before you zero-down on the insurer, make sure to check its CSR to avoid the risk of claim rejection.
Thus, when you invest in a bike insurance policy, you must note the things mentioned above and get maximum protection....