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Do not commit these mistakes while buying or renewing bike insurance

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Published on October 29, 2020. Last Updated on December 11, 2020 EST READ TIME: 4 MIN

In order to be legally allowed to ply on a public road in India, every vehicle is required to be registered with the regional transport office, undergo a pollution under control test, and be insured by an IRDA approved insurer. Buying insurance is mostly an annual affair and many people do it without giving much thought, but these are a few points, which you must be careful about when you buy two wheeler insurance.

1.  Not shopping around for a better deal: Many people think that the insurance has to be purchased from the bike showroom when they buy a new motorcycle. This is not the case. If you think showroom insurance is too expensive, you can buy new bike insurance online.

2.  Not utilizing  the no-claim bonus (NCB): In order to incentivize the responsible bike owners, the insurance companies provide special discount on renewal premium if no claim was made in the previous year. This increases on an annual basis. Check that you have taken advantage of this bonus.

3.  Not choosing the multi-year option: Did you know that you can insure your bike for not just one, but two or even three years at one go? This multi-year insurance comes at a significant discount. Always choose this option if available and if you have the budget for it.

4.  Not maxing out your IDV: Many insurance providers allow you to choose your own Insurance Declared Value or IDV. This means that you can get a higher cover amount and lower depreciation over the years. Even though the premium may increase a bit, the extra cost is well worth it.

5.  Not choosing the roadside assistance service (RSA): Have you ever been stuck on the road with a punctured tyre? Did you know that you can get roadside assistance with your bike insurance policy? Always get an RSA deal in your package when available.

6.  Not choosing the personal accident cover (PAC): IRDA recommends that all owner/drivers get a personal accident cover worth INR 15 lakh for at least one of the vehicles they own. Since bike or scooter is the first vehicle of most of the people, this PAC is a must-have.

7.  Letting your bike insurance policy expire: Many people postpone their insurance purchase because of lethargy or any other reason. Never let your bike insurance policy expire and renew on time, to avoid unnecessary hassles.

8.  Not checking the cashless network: If you do not choose an insurance company with a large cashless network, you will have to manage a lot of paperwork and bills. Large cashless network saves a lot of hassle and reduces the risk of claim denial.

9.  Not choosing minimum co-pay: By paying a bit extra premium, you can reduce your co-pay component so always choose a bike insurance policy with minimum co-pay.

10.  Not crosschecking personal and vehicle information:  When all research and selection is done and you are about to buy the insurance policy online, always make sure that the information populated from server side as well as your side is correct. Double-check it just to be sure!

Conclusion

So, if you are planning to buy a new bike or want make sure to avoid these mistakes when narrowing down on a bike insurance policy.

Disclaimer:  The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

This blog has been written by

Mukesh Kumar | Motor Insurance Expert | 36+ years of experience in insurance industry

A veteran in the insurance industry, Mukesh Kumar has the expertise of handling various functions like Business Development, Underwriting, Claims, Human Resources, Quality Management and Marketing. With rich knowledge of the industry, he loves to share his views on topics of insurance sector and takes special interest in educating people on advantages of having insurance.

Mr. Mukesh Kumar recommends "getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 7,600+ network garages, you can be assured of help in event of any damage to your vehicle."

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