Factors to Consider when Buying Two Wheeler Insurance Policy
One of the simplest ways to protect your bike against losses that occur due to an accident, and any liabilities arising from it, is by purchasing two-wheeler insurance. Not only will it protect you from unexpected expenses, but it will also help comply with the Motor Vehicles Act, 1988 which states that third-party motor insurance is mandatory in India.
Any confusion regarding the 2 wheeler insurance policy can lead to the wrong choice. This can cause problems later on. To ensure that this doesn’t happen, the first step towards purchasing insurance is to understand it in a better way.
To make sure that you get the best two-wheeler insurance policy for your vehicle, here are some factors that you need to consider when buying 2 wheeler insurance policy:-
1. Types of Bike Insurance Policies
At present, there are two types of vehicle insurance policies available in the market; Comprehensive and Third Party. As mentioned before, the Motor Vehicles Act, 1988, makes it compulsory for vehicles to have at least third party insurance. Here’s a detailed look at both types of bike insurance policies.
a. Comprehensive Insurance
A comprehensive two-wheeler insurance plan will help ensure your bike against any risk arising out of theft or damage to the vehicle, etc. At the same time, it will also cover any accident or damage caused to a third party. Usually, comprehensive car insurance will provide cover against:-
1. Natural calamities like earthquakes, floods, typhoons, etc.
2. Man-made calamities like theft, riots, etc.
In addition, comprehensive policies also provide personal accident cover for the owner-driver.
b. Third-Party Insurance
Third-Party insurance will only provide cover for the damage done by your vehicle to a third party’s property or/ and vehicle, and not for theft or damage to your own vehicle. To be precise, this type of bike insurance will provide you cover against any legal liability arising to a third party due to accidental damages, like:-
1. Permanent injury
2. Death of a person
3.Any damage to the property
In most cases, both third party and comprehensive insurance covers are valid only for a year and will need to be renewed every year, unless you have opted for a long term bike policy. The premium for a two-wheeler insurance policy will depend on various factors like the age of the vehicle, type of policy, and geographical zone.
The policy premium will be affected by a number of factors. The cubic capacity (CC) of two-wheeler’s engine will be the prime determinant of the premium. As per the India Motor Tariff, there are three categories: 0-150CC, 150-350C, and 350CC and above. And the policy premium will depend on the category your bike belongs to;higher the engine capacity, the more will be the policy premium. Location is another important factor that will affect premium calculation. There are two zones: Zone A and Zone B. Cities under Zone A attract a higher premium than the Zone B cities and towns.
3. Insured Declared Value (IDV)
In simple terms, IDV is the current market value of the vehicle. The Insured Declared Value (IDV) is the maximum amount that can be claimed on insurance in case of total loss or theft. Generally speaking, IDV decreases as the age of the bike increases.
If you feel that the current policy coverage isn’t enough, you can extend the coverage of your two-wheeler insurance policy by opting to add riders to your existing policy. Riders are add-ons that can be added to bike insurance policies by paying an extra premium. Common riders include roadside assistance, personal accident cover, etc.
5.No Claim Bonus or NCB
NCB is an additional bonus which can be availed when you have a claim-free policy term. NCB is offered as a discount on the policy premium up to a maximum of 50% NCB can be accumulated.
6. Claim Procedure
A good two-wheeler insurance policy is one that comes with the ease and efficiency of the claim procedure. Check the claim settlement ratio of the insurer to know about the efficiency of claim settlement.
7. Buy Online
When you purchase bike insurance online, you remove the middlemen or the agent and deal directly with IFFCO Tokio. This helps you save the commission, leading to a reduction in the policy cost. The entire process of purchasing bike insurance online requires less paperwork and hence, is more cost-effective than purchase from the traditional method. These savings reflect in the form of lower policy premiums.
Besides doing your utmost to take the best care of your bike, you can also ensure its safety by opting for a two-wheeler insurance cover that suits your needs. Make sure that you keep the aforementioned factors in mind to find the best insurance policy for yourself.
Learn more about theft cover for bike insurance
**To understand exactly about the policy coverage, exclusions etc read the Policy Wordings carefully.**