The Motor vehicles Act, 1988, mandates all vehicle owners to avail at least a third-party liability cover. This move was made considering the benefits for both the parties, the rider, and the one who may get involved in the unfortunate incident or mishap. Read more to know about the do's and don'ts before buying two wheeler insurance plans for your vehicle.
With increasing traffic, two-wheelers nowadays are more of a need than a want. However, buying a vehicle for the first time brings a lot of confusion with it. It requires detailed research in terms of budget, brand reputation, technical aspects, and many things. Buying two wheeler insurance plans is one such decision where people need to be careful.
In India, it is mandatory to have at least a third-party liability cover, which protects you against any third-party damages due to an accident or any other road incident involving your bike. Besides the third-party bike insurance policy, there is one more type of bike insurance policy named comprehensive bike insurance. While a third-party bike insurance policy covers the liabilities only for the third-party person or property, a comprehensive bike insurance policy covers all types of damages, including third-party losses and own damages.
People often get confused about the things they should consider while buying two wheeler insurance plans. This article will give you a clear idea of the aspects you should keep in mind before buying a suitable bike insurance policy for your beloved vehicle.
The Do’s When Buying Two Wheeler Insurance Plans
Learn about the types of two wheeler insurances
- It is important to learn about the types of insurance plans available before buying one. There are two types of bike insurance plans available in India – Third-party cover and comprehensive cover.
- A third party two bike insurance policy, also called liability only policy, is basic insurance mandated by the law. This type of policy covers bodily injury, death, and damages to third-party and property.
- A comprehensive policy covers loss or damage to the vehicle by natural and manmade causes, theft, own damages, in addition to what is covered by a third-party policy.
Explore the add-ons
- In the current insurance market scenario, we can say that the insurance sector is becoming a customer-driven industry. Add-ons offered by the insurance companies focus on the pain areas of several customers and serves the needs of the hour for each of them separately. Add-ons like roadside assistance, repairs, accessories cover, zero depreciation cover, etc. are some additional covers that could benefit the customer greatly and are available as add-ons at a nominal premium.
Understand the IDV
IDV (Insured Declared Value) is one of the significant factors that must be considered while buying two wheeler insurance plans. IDV is nothing but the current market value of your vehicle. Depreciation of the vehicle is considered into the IDV, and then the IDV is calculated.
Check for coverages
While most insurance companies offer similar, if not the same, basic coverages, you must carefully go through and understand each aspect included in your two wheeler insurance policy. Natural and manmade calamities, own damage, accident cover, and so on are included in a comprehensive two wheeler insurance policy. Whereas, only third-party liabilities are covered in case of third-party insurance. Without having adequate knowledge of this, it is difficult to know when and what to make a claim.
Evaluate several choices. You can use two wheeler insurance premium calculator, and side by side view tools, compare various bike insurance plans available in the market. Even if you are bonded with the same insurance provider for years, chances are, you will end up paying the same premium amount every year while you might find a cheaper and better policy in the market if you make an online comparison.
Do check inclusions and exclusions
All two wheeler insurance plans will have a set of inclusions and exclusions. This will help you to know when you are eligible to raise a claim.
The Don’ts When Buying Two Wheeler Insurance Plans
Don’t go for a cheaper cover that is not sufficient
You will have an army of bike insurance plans to choose from. However, the cheapest policy is not always a great deal. While it may give you a temporary benefit in terms of a lower premium, it may not provide enough cover or exclude essential covers such as natural calamities, or personal accident cover which will lead you to bear huge costs in the future.
Don’t delay in filing a claim
Filling insurance claim in the stipulated time is uber important and is the only way to ensure you receive the policy benefits. Claiming the policy benefits even a day after the specified time period may disqualify your entitlement to the claim.
Don’t skip reading about the policy terms and conditions
You may not understand each term and condition written in the policy document, but it is necessary to go through this information when buying a policy. If anything, that you do not understand, you can get in touch with the insurance company to get your doubts clarified. While buying two wheeler insurance plans, whether it is a new one or renewal of the existing policy, you must study the policy document carefully before signing the dotted line.
Don't forget to renew the policy
At least a third-party insurance policy is a must if you own a bike. Always keep a reminder for renewal of your insurance policy before it expires so that you are always covered.
Don’t falsify information
While providing information in the policy application, be it vehicle-related or personal, make sure it is true to the best of your knowledge. Incorrect information may lead to your policy application being rejected.
An accident or other unfortunate event may result in loss of property or life. Having a two wheeler insurance policy at least covers you against the financial side of the risks. This checklist of do's and don'ts is generic; however, it should not be ignored. Ignorance may lead to lesser coverage and a higher insurance premium.
Recommended Link: A First-Time Bike Insurance Buyer's Guide
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