Everything to Know When Buying Bike Insurance For the First Time
If you are about to purchase bike insurance for the first time, then it is imperative you have a good understanding of how it works. Having good knowledge about buying bike insurance will help you choose the best two wheeler policy that offers good coverage and is also as per your budget. Read below about the few things you should know when buying bike insurance for the first time.
First, let’s understand why bike insurance is important?
Just as you purchase a health insurance policy to insure your health, you purchase a bike insurance policy to insure your bike. Investing in bike insurance wards off the financial burden from your shoulders and instead makes the insurance company bear the costs of the damages on your behalf. So if you cause an accident due to which the third party is injured and your car is damaged, then the cost of repair as well as the third party liability is borne by the insurance company.
Few things to know when buying bike insurance for the first time
Difference between a third party and comprehensive cover: When choosing bike insurance, it is imperative that you know the difference between the two types of policies offered in India. You can either opt for a comprehensive bike cover or a third party cover. Third party or liability only cover is mandatory by law.
Third party bike insurance provides you coverage against a third party liability in terms of death, bodily injury and property damage. On the other hand, comprehensive insurance provides coverage against damages caused to your car in addition to third party cover . It is always advisable to opt for a comprehensive cover as it offers you a coverage for both own damage as well as third-party.
Understand the insured declared value: IDV is the value of your bike and depends on the manufacturer’s listed selling price and then it is adjusted for depreciation .It is the maximum amount you can claim for in case your bike is stolen or totally damaged.
No claim bonus: NCB is a discount you are eligible to receive for making no claim under the expiring policy year. It is on own damage premium at the time of renewal. This is the reward offered to vehicle owners for safe driving and the discount can go up to 20%-50% for five consecutive claim free years.
Check the list of network garages: Your insurer will offer you cashless garage services at the garages that fall under its network. Always check if a wide number of network garages are covered nearby your area.
You can opt for add-ons: To enhance the coverage offered under your bike policy, you can opt for add-ons such as pillion rider, ,roadside assistance and others. These add-ons can be added to your comprehensive policy.
Premium calculation: The premium that you pay for your insuring your bike is calculated on the basis of the bike’s cubic capacity, IDV, make and model, optional covers and the type of policy you opt for.
Lastly, don’t forget to read the policy documents before buying bike insurance in India. As a policyholder, it is imperative you are aware of all the terms and conditions of the policy to ensure you are receiving enough coverage. While buying bike insurance is important, it is also necessary you do the renewals on time as not doing so can prevent you from getting the desired coverage. If you forget to renew bike insurance in a timely manner, then you can opt for long-term two wheeler insurance.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.