Tips for Buying Two Wheeler Insurance Policy

Two-wheelers are some of the most convenient vehicles for commuting in India. You can use your scooter or motorbike for short travels like riding to work or for longer travels like road trips. Either way, two-wheelers bring you comfort and convenience like no other.

Hence, it is very important to insure your two-wheeler against damage. Two-wheeler Insurance, a compulsion under the Motor Vehicles Act of 1988, can bring you many benefits and extensive coverage. However, it is very important to tread carefully when purchasing your Two-wheeler Insurance. Therefore, here are 7 tips for buying a Two-wheeler Insurance policy. Consider these carefully as you get your Bike Insurance.

Things to Consider While Getting Two-wheeler Insurance Policy

You can find a detailed breakdown of all the factors you need to consider while purchasing an insurance policy for your two-wheeler vehicle.

Type of Bike Insurance

Two-wheeler Insurance can come in three types viz. Third-party Bike Insurance, Standalone Bike Insurance and Comprehensive Bike Insurance. Each type of Bike Insurance is explained briefly as shown below.

• Third-party Two-wheeler Insurance was made compulsory by law and is essentially an insurance that provides coverage for any third-party bike that was damaged during an accident along with the individuals involved.
• A Standalone Bike Insurance covers the damages inflicted upon your bike and injuries inflicted upon you, as driver or passenger, in case of an accident.
• Comprehensive Two-wheeler Insurance is a Third-party Bike Insurance and Standalone Bike Insurance combined into one where all parties and vehicles involved in an accident are given coverage. 

Premiums

In order to purchase Two-wheeler Insurance, you are required to pay a premium amount at certain intervals of time to keep your insurance plan active. In this way, your active Bike Insurance can provide you with coverage and benefits as and when you make a claim. Always be mindful of factors such as no-claim bonus, insured declared value, policy term, etc. that can alter your Two-wheeler Insurance premium.

Insured Declared Value

Insured Declared Value (IDV) is a factor that affects your Two-wheeler Insurance premium price greatly. It is calculated on the basis of the current market value of your two wheeler. You can always compare the IDV offered to you by various insurers in order to make the right decision.

Network Garages

Two-wheeler Insurance plans offer you cashless services at garages that their parent insurer is affiliated with. Here, the repair and replacement costs are settled entirely between the garage and the insurer. It is imperative, hence, to be mindful of the network garages an insurer has to offer in order to determine whether that particular insurer and Bike Insurance is the perfect one for you.

Claim Settlement Ratio

The Claim Settlement Ratio (CSR) is one of the most crucial parameters that decides the credibility of a Two-wheeler Insurance company. This is a percentage assigned to the insurance company determined by the number of claim requests received and the number of claims the insurer was able to settle within a given year. The higher the CSR the more reliable your insurer is.

Policy Inclusions & Exclusions

To know what your policy covers and what it does not cover is very crucial to your experience as the insured vehicle’s owner. This offers you perspective on the extent to which you can claim benefits and coverage from your insurer. You can find all inclusions and exclusions in the policy document of your Bike Insurance plan.

Some common exclusions are as follows:

• Using vehicle under the influence
• Damage due to nuclear/war-like activities
• Damage incurred outside a particular region’s boundaries

A few inclusions of Two-wheeler Insurance are stated below:

• Theft coverage
• Damage because of natural calamities
• Accidental damage

Insurance Riders

Insurance riders are also known as add-ons. They are essentially extra coverage and benefits you’d like to add to your Two-wheeler Insurance to better fit your vehicle’s needs. You could include add-ons such as hospitalisation benefits, death benefits, road assistance coverage, etc. Please note that each insurance rider comes with a premium price which is added to your basic Two-wheeler Insurance premium amount.

Wrapping It Up

Your two-wheeler is your most loyal companion. It deserves love, respect and security from you for it to continually support you for the many years to come. Hence, getting your two-wheeler insured can be one of the best decisions you can take as the owner of your efficient and convenient bike or scooter. By getting a Two-wheeler Insurance plan, you are not only securing yourself and your vehicle but also the vehicle of another party or individuals involved in a mishap, as your extended responsibility. Hence, picking Two-wheeler Insurance wisely is your best bet.

(Above mentioned article is a consumer connect initiative, This article is a paid publication and does not have journalistic/editorial involvement of IDPL, and IDPL claims no responsibility whatsoever.)