New To The Bike Insurance Game? Read These Tips

We invest a good amount of time in researching different bikes in the market before buying a new bike. Similarly, buying the right bike insurance requires some time too. If you are buying bike insurance for the first time, and don’t know how and where to start, this beginner's guide is for you. We will help you understand why bike insurance is a must, the different types of two-wheeler insurance plans available, and factors to consider while buying a new bike insurance policy.

Why you must buy a bike insurance policy?

According to the Motor Vehicles Act of 1988, third-party liability insurance is mandatory for all vehicle owners in India. Riding a bike without valid third-party two-wheeler insurance is a punishable offence. This two-wheeler insurance covers damage caused to a third party or his/her property.

Types of bike insurance plans

There are three types of bike insurance plans –

1. Third-party liability bike insurance: Third-party two-wheeler insurance will cover all financial liabilities for loss caused to a third-party vehicle or property by the insured bike. It will also cover bodily injury or death to a third-party person. This means if you cause an accident in which a third-party vehicle or property gets damaged and/or causes injury to someone, your third-party insurance will compensate the loss. However, it will not cover the damages caused to your bike and you. Third-party liability insurance is mandatory in India.

2. Comprehensive bike insurance: A comprehensive bike insurance provides complete protection to your bike. It not only covers third-party liabilities but also covers damage/loss to your bike due to accidents, fire, theft, and natural or man-made disasters. You can also enhance your bike's insurance coverage with add-on covers aka riders, such as zero depreciation, roadside assistance, and no-claim bonus protection. Riders can be purchased only with comprehensive bike insurance and are subject to additional premiums.

3. Standalone Own Damage: This type of two-wheeler insurance covers any damage caused to your own bike in an accident is covered by a standalone own damage policy. It does not cover third-party liabilities.

How to buy a new bike insurance

There are several factors that you must consider while buying bike insurance. Scroll on to read:

1. Know your requirements: Before you buy a bike insurance policy, it is essential to understand your requirements and budget. Choose the plan that offers the right coverage based on the usage of your bike. While third-party insurance will cover only third-party liabilities, comprehensive bike insurance will cover both own damage plus third-party liabilities.

2. Riders to enhance coverage: Although riders come at an extra cost, they offer additional protection to your bike. A few of the popular add-ons include zero depreciation cover and roadside assistance cover. However, choose only those necessary riders since they will increase the premium of your policy.

3. Set the correct IDV: Insured Declared Value (IDV) is the current market value of your bike, and this is the amount you will receive in case your bike gets stolen or is damaged beyond repair. So, it’s important to set the correct IDV while purchasing insurance. A lower IDV will reduce the premium, but it will also decrease the claim amount.

4. Choose a good insurance company: The insurance company must have a high claim settlement ratio and a seamless claims process. Ensure you choose a reputed brand. The claim settlement ratio indicates the financial ability and credibility of the insurer. The higher the ratio, the more reliable and credible the insurer.

5. Network garage: Look for an insurer with a strong network of garages. This will ensure you have multiple options when your vehicle needs servicing or repairs, and the claim settlement will be quick. If you take your bike to a network garage for repairs, the insurer will settle the bills directly with the garage. You may not be required to pay upfront.

6. Compare bike insurance: Comparing bike insurance plans is an important aspect of buying insurance, as it helps you to make a well-informed decision. Compare the available plans based on cost, coverage, network garages, inclusions, exclusions, etc.

Conclusion

Securing your bike with the right two-wheeler insurance is crucial for maximum financial protection. When you know your insurance needs, it will be easy to find a policy that best suits your requirements. Also, before you finalise any plan, carefully read the policy document, including the inclusions, limitations, and exclusions to ensure there's no confusion at the time of claim settlement.

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