Things to remember while buying your bike insurance

A Bike serves different purposes in life. It can be your passion, obsession, need, dream etc. While buying a new bike there are several factors on which you keep your eyes and ears wide open like affordability, design (make and model), brand value, mileage and other technical details. But for insurance it’s sad to learn that it’s either the last thing you think about or rather don’t consider at all. The reason is obvious people in India keep a herd’s mentality of taking insurance policy as just an additional expense on the bike purchase or compulsory enforced by law (atleast third party). So, deprived of any options you blindly buy whatever policy your dealer offers without ever considering the basic pointers that you should know about your two wheeler insurance. However, bike insurance is not just a liability it’s a valuable asset which when utilized properly can cover up the losses of your bike, third party damages etc. So here are few basic things you need to know while buy two wheeler insurance.

Type of plan

There are basically two plans a) Liability plan - It is a mandatory third party policy that covers bodily injury and/or death or property damage of any third party. Personal accident cover is also granted only for the owner driver b) Package or comprehensive plan - Apart from including the above liabilities, it also includes damage to your own vehicle. The first policy is mandated by law and the second is your choice as per your requirements.

Cubic Capacity

The cubic capacity of your bike plays an important role in determining your premium. As the capacity increases premium increases. Secondly, metropolitan and major city have higher premium rates being more prone to accidents or mishaps.

Types of coverage

A variety of insurance coverage is available for your two wheeler insurance. These include collision coverage, fire, theft and vandalism cover, insurance for the pillion rider, etc. You can choose the one that meets your requirement and mostly importantly fits into your budget. 

No Claim Bonus

You’re entitled to receive a No Claim Bonus (NCB) for every claim free year. NCB are generally discounts on your premium. The NCB starts at 20% for the preceding claim free year and for every subsequent claim free years, the rate increases to 25%, 35%, 45% limiting to 50%.

IDV

Insured Declared Value (IDV), it is the value for which the vehicle is insured and remains fixed during the term of the policy. It is calculated on the basis of the manufacturer’s listed selling price after adjusting depreciation based on the age of the two-wheeler.

Change of ownership

When you sell your bike you can transfer your existing two wheeler insurance as well. The transferee will have to inform the other party (insurer) within 14 days and provide all the necessary information regarding the vehicle.

Change of vehicle

Just like you sell your bike to another person if you purchase a new one your existing plan can continue provided the premium would be adjusted on a pro-rated basis and your new bike should be of the same value.

Claim processing

Settling your claim in case of damage is the most important part of your plan. You will have to inform your insurer who will complete the necessary formalities and settle the claim. A vehicle is considered as a (constructive total loss) CTL when the cost of repair or retrieval exceeds 75% of the IDV. In this case the insurer will give you the IDV after deducting the depreciation on parts.

These are few things that you need to remember while opting for your two wheeler insurance policy. Just buying any policy will not work for you. At times, your claim might also be rejected as a consequence of the disinterest you show while buying your bike policy.