Common Mistakes to Avoid While Choosing Bike Insurance
In India, as per the Indian Motor Act, all bike owners must have insurance cover for their bikes. Driving without valid insurance is illegal, and a punishable offense. When it comes to purchasing bike insurance, the process is simple, yet many people tend to make several mistakes that can be easily avoided. If you are looking for two-wheeler insurance, you must be wary of the common mistakes mentioned below and make a smart buying decision.
Not transferring the existing policy
Buying a used vehicle is a common practice in India. However, most people who buy second-hand bikes don’t get the existing insurance of the owner to their name. In such a situation, the vehicle will not be insured, which means it is a violation of the law. Make sure to assess the existing insurance and get it transferred or purchase a new policy to avoid paying an unnecessary fine for driving without valid insurance.
Not verifying the personal details
It may sound obvious to check the details on your insurance documents but unfortunately, a lot of people don’t do it. It can be a costly mistake later. Whether you are buying two wheeler insurance online or from a broker, make sure to double-check your personal details such as the spelling of your name, age, address, bike details, etc. Inform the insurer if there is any mistake and get it rectified to avoid any discrepancy while you file a claim.
Not mentioning the nominee’s name
If you meet with a road accident, the only way your family member will receive the claim amount is if you have mentioned their name as a nominee in the application form at the time of purchasing the policy. Make sure that you avoid this silly mistake and give your family members the financial cushion in case of an accident that leads to serious consequences.
Not determining the IDV correctly
The IDV or Insured Declared Value is the maximum sum insured that the insurance companies agree to pay to the bike owner in the event of loss or theft of the bike. The insurers determine the IDV based on the current market value of the bike after deducting the depreciation rate. Make sure that you don’t rely on the insurer’s calculation alone while buying a new policy and bike insurance renewal.
Not choosing the correct policy period
Generally, the insurance companies in India offer bike insurance for one year. But you can also buy long-term insurance for two, three, or five years. Many people commit the mistake of not exploring this option as they are unaware of it. When you are comparing bike insurance price, you must ask the insurer about long-term two wheeler insurance plans, assess your needs and choose the right plan accordingly.
Not disclosing important information
While filling the bike insurance form online, it is paramount that you disclose every information related to the plan honestly. Even a small degree of misinformation can have serious implications later. Your claim may be rejected on the grounds of violation of insurance terms and you may even face legal trouble. You can easily avoid this by being honest.
To sum up, you must be extra careful while you buy a new policy or fill the bike insurance renewal online form. Take your time to understand the process correctly and avoid the above-mentioned mistakes.