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Things to keep in mind while getting two-wheeler insurance

Published on September 23-9-2020. EST READ TIME: 3 MIN

A bike is one of the most convenient, affordable, and popular modes of transport in India. However, you have to be alert on the road and take the necessary precautions for a safe ride. Also, take the right bike insurance cover to avoid sudden expenses in case of an accident. While it is mandatory to have a basic two-wheeler insurance policy in India, you can choose a comprehensive two-wheeler insurance policy for wider coverage.

If you are planning to take a two-wheeler insurance policy, here are some things to keep in mind.

  • Coverage: This is important for timely financial support in case your bike meets with an accident. While you may have a basic two-wheeler insurance, it may not cover accidental damage and theft. Hence, it is better to choose a comprehensive plan for extensive coverage and better financial security.

  • Claim settlement ratio: When you are choosing an insurance company, select one with a high claim settlement ratio. In case your bike meets with an accident, a company with a high claim settlement ratio is likely to settle your claim quickly.

  • Policy tenure: When you are taking bike insurance, opt for a long-term policy. This will save you from the hassles of renewing it every year. What’s more, the premium rates will remain the same throughout the policy tenure, even if there has been an annual hike otherwise.

  • Insured Declared Value: Insured Declared Value or IDV is the current market value of your bike. If your bike meets with an accident, you will receive an amount equal to its IDV. Hence, make sure you declare the correct IDV as it will affect your insurance premium as well as the benefits you receive.

  • Premium: Consider the factors that may determine the insurance premium. For instance, the premium is higher for bikes with high engine capacity. Your location also affects the premium calculation. There are two zones – A and B. If you reside in Zone A, you have to pay a higher premium amount. The bike’s age and your driving skills are also important factors to consider.

  • No claim bonus: If you do not make a claim during the policy term, you will be eligible for a no claim bonus or NCB. Hence, your insurer will offer you a discount on the premium for your good driving record. For the first NCB year, you may receive a discount of 20%. For subsequent claim-free years, the NCB discount rate keeps increasing until it reaches 50%.

  • Network garage: Ask your insurer about their network garages. In case your two-wheeler meets with an accident and you get it repaired at a network garage, your insurer will meet the expenses. The more network garages they have, the better it is for you. You can choose a one in your region and get your bike repaired in it for quicker and easier claim settlement.

  • Customer service: In case your motorbike faces an issue, you should receive immediate help from your insurer. Therefore, choose a reputed insurance company for quality and timely customer service and support. You can ask your friends and colleagues for references or read reviews online to get an idea about them.

  • Inclusions and exclusions: Check the inclusions and exclusions of the policy and select one accordingly. The last thing you will want is a claim being rejected because it is under the exclusion list.

Conclusion:

These are some of the most important factors to consider before you finalize on a two-wheeler insurance policy. You can either opt for a basic third-party plan or choose a comprehensive two-wheeler insurance policy for maximum coverage and add-on benefits. Also, remember to state the correct insured declared value of your bike for the right claim settlement.

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 6,800+ network garages, you can be assured of help in event of any damage to your vehicle

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