Six Things to Consider When Purchasing Two-Wheeler Coverage
In a country like India, where you find yourself stuck in traffic every five minutes, who would enjoy driving a car?
According to a study conducted by the Society of Indian Automobiles Manufacturers (SIAM), about 77% of the country’s vehicle market is dominated by two-wheelers. With the increasing traffic and poor road conditions, they have become the most favored mode of transport for commuters here. Besides providing ease of commuting, it also comes with features like hassle-free parking, ease of maneuverability, and ease of usage.
Some other aspects that you might have ignored include low down payment, attractive loans, and low maintenance costs. But the Indian market provides so many choices in every segment to the buyers that they tend to get confused.
One area in which there is a lot of confusion among the buyers is finding reliable two-wheeler coverage. It is imperative to have a tension-free driving experience and to keep your bike in the best condition.
So, here is a quick guide to help you buy the perfect two-wheeler coverage in India:
Types of Policies
When planning to buy a two-wheeler coverage, it is essential to check the plan. There are basically two types of insurance plans for bikes based on coverage, namely:
Comprehensive Insurance
A comprehensive insurance plan ensures that your vehicle remains covered against risks arising out of theft, damage to engine parts, and an accident caused to a third party. Comprehensive bike insurance provides coverage against:
- Natural calamities
- Man-made calamities
- A personal accident caused to the driver/owner.
Third-party Insurance
Third-party insurance only covers the damage caused by your vehicle to a third party’s vehicle or property. It is vital to note that it does not cover theft or damage caused to your own vehicle. In other words, this type of insurance protects you against any legal liability arising to a third party due to accidental damages such as:
- Permanent injury
- Death of someone
- Damage to the property
Out of the above two coverages, you have to pick the one that suits your requirement. In most cases, both of them are valid for a year and need to be renewed annually. The premium also depends on factors like the age of the bike, type of policy, and geographical area.
2.Premium Amount
When comparing different bike insurance policies, the most important thing to consider is the premium amount. A popular misconception is that a cheaper premium is not always the best, but you can find an ideal insurance policy even with a low premium amount. You just need to confirm the inclusions, the credibility of the company, and the claim settlement ratio.
3.Availing Discounts
At the time of buying a two-wheeler coverage, look for discounts and other offers provided by the company. As most insurance providers attract customers by offering discounts, do not forget to avail such options. But sometimes, the agents do not inform you about these details once the premium is paid because they want to cut costs. That is why you should read the insurance plan thoroughly before buying one.
Additionally, you can claim NCB (No Claim Bonus) if you have a claim-free policy term. For your knowledge, NCB is a discount offered on your policy premium – a maximum of 50% NCB can be accumulated.
4.Availability of Add-ons
Add-on coverage is additional benefits that you can opt for by paying extra charges to extend the policy coverage. If you feel that the current coverage is not enough, you can extend it by adding riders to the policy. Riders are called add-ons as they can be added to the insurance coverage by paying an extra premium.
Popular add-ons include zero-depreciation, personal accident coverage, roadside assistance, passenger coverage, etc. Under the comprehensive policy, a two-wheeler’s regular wear and tear, which motorcycle parts manufacturers can fix, are not covered. But with zero depreciation, the amount of wear and tear is not deducted from your claim payout.
As add-ons are very beneficial, policyholders must always check whether they are available or not.
5.Buying Online
Intermediaries and agents are not included during an online purchase, which helps you save the commission, hence reducing costs. The entire procedure requires less paperwork and, thus, is more cost-effective than the traditional method. Also, ensure that the claiming process is easy and efficient, which you can get to know about by checking the settlement ratio of the insurer.
If you do everything as suggested, everything will work finely.
6.Terms & Conditions
Terms and conditions are the most crucial part of buying an insurance policy. As a wise customer, you must check them to understand what the insurance company offers in the policy. Being an informed customer also includes checking the current market value of your vehicle so that you know the maximum amount that can be claimed on insurance in case of a mishap.
You must also check the exclusion list to avoid disappointment at the time of application of claim settlement.
Final Words
You must think that having two-wheeler insurance is just a legal liability, but there are several reasons other than that. It is not just for your safety but for the protection of your fellow passenger and others as well. While it is crucial to regularly maintain your vehicle and have a network of service centers providing easy spare parts, the simplest way to protect your bike against unexpected expenses and unforeseen accidents is to get insurance coverage.
Nowadays, several companies are offering good coverage for your vehicle, but you have to decide which one to choose at the end of the day. Any confusion can lead to the wrong choice and cause problems later on, so make sure that does not happen. Take your time to decide which policy works the best for you and which does not.
Do your research to choose a policy that suits your requirements – and do not forget to keep the factors mentioned above in mind while doing so. We wish you good luck!
