Strike Off These Items When You Buy a Two-Wheeler Insurance Policy
The necessity to buy a two-wheeler insurance plan is what makes bike owners purchase a bike insurance plan. But understanding the regulatory requirement of a two-wheeler insurance plan can benefit you in the long run. So, you must pay keen attention to the policy details when buying one.
Considering the importance of bike insurance, authorities have made it mandatory to have third-party long-term coverage for five years for all new two-wheelers. Your vehicle dealer might assist you by offering a couple of insurance plans, it is your responsibility to buy a robust insurance plan that checks all the right boxes. Here are some crucial pointers to consider when buying a two-wheeler insurance policy:
- Type of insurance plan
Type of insurance plan is a crucial element to strike-off when buying a bike insurance policy. Based on the type of plan, the policy coverage is defined and similarly, its bike insurance price gets determined. There are essentially two types of insurance plans to choose from—a third-party bike insurance or comprehensive bike insurance. A third-party policy is the minimum required insurance cover but has limited coverage restricted to third-party injuries and damages. On the other hand, a comprehensive plan includes a third-party cover along with an own-damage cover that safeguard against the damages to your bike. Additionally, a comprehensive plan includes a personal accident cover to protect the owner-driver from injuries. *
- Insured Declared Value (IDV) of your bike
The current value of your bike becomes the primary factor for determining the premium amount. IDV is the amount that the insurance company pays in the event of a total loss or complete damage to your bike. Situations of constructive total loss are also considered for paying the IDV. Since the IDV is the amount that the insurer pays for damages to your bike, only comprehensive bike insurance plans have IDV. These plans allow the policyholder to increase or decrease the IDV within a specified range. However, doing so does impact the premium calculation. *
- Policy coverage
Once you have decided upon the type of plan and set its IDV, you must check for the coverage provided by the insurance policy. Different plans have varying features and hence, checking what is included and excluded in your policy coverage is essential. *
- Add-on covers
Apart from checking what the policy covers, add-ons are optional features that can be selected when you buy a comprehensive policy. These insurance covers are not available for a third party bike insurance plan. Add-ons enhance the policy coverage significantly by providing additional coverage over and above the standard comprehensive bike insurance plans. This way, any shortcoming of the comprehensive cover can be overcome using add-ons. However, one essential feature to remember when buying add-ons is that it comes at an extra price. *
- Insurer’s credibility
While you look at the policy features and its different add-ons, do not forget to check the insurer’s credibility too. A more reliable insurance company has low claim processing time as well as adequate financial cover. *
* Standard T&C Apply
Keeping in mind these above pointers, you can buy a suitable two-wheeler insurance plan that is the perfect fit based on your requirements. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.