It is good to have confidence in your driving skills, but you are not the only one using a vehicle on the road. Even a slight mistake by another person on the road can lead to accidents. Keeping this point in mind, you need an insurance even for your two-wheeler in order to be financially covered in case of any untoward incident.
As per the Motor Vehicles Act, 1988, having a motor insurance policy in place is mandatory when riding on Indian roads. A two wheeler insurance is a type of motor insurance which provides you with financial coverage in case of loss, damage, accident, thefts and third-party liabilities. With a plethora of options available in the market, you should have a sound knowledge about a two-wheeler insurance before buying one.
Choose the Right Type of Coverage: There are two types of two-wheeler insurance- comprehensive cover and liability-only policy. You might want to opt for just a third party policy or liability only policy, as it is mandatory under the Indian Motor Vehicles Act. However, this single policy will not cover the owner-driver against accident or injury and loss or damage to the two-wheeler caused by natural calamities or manmade reasons. Thus, always go for a comprehensive coverage for complete protection.
Opt for Riders or Add-on Coverage: The add-on coverage is like a spare tyre for “just in case’ possibilities. These riders increase the coverage provided by the insurance company at a nominal rate. To understand it better, as part of the Zero Depreciation add-on coverage, the depreciation value of the parts of the vehicle will not be included in its repairing cost. Another example is that of a roadside assistance rider that will help you in managing the situation in case your car breaks down on a road in the middle of the night.
Look for Discounts:Before zeroing in on a two-wheeler insurance policy, do take a note whether the company is offering discounts on certain factors like membership of Automotive Association, No Claim Bonus, inclusion of anti-theft system. These factors will help you in saving on your premium amount to be paid. If you don’t make any claim in the previous policy year, the insurance company will reward you with NCB that will help lower your premium amount. Also, it is advisable to pay for minor repairs in order to avail your NCB. Always gain awareness of other such features.
Make Note of Insured Declared Value (IDV): Apart from considering the premium whichyou need to pay for the policy, also make note of the IDV being offeredby the insurance company. In case your two-wheeler or bike gets stolen ordamaged, IDV is the maximum amount your insuranceprovider can give you asreimbursement. IDV and premium go hand-in-hand which means higheryour IDV, higher your two-wheeler insurance premium.
Claim Settled Ratio Vs Rejection Ratio:This one should play a significant role while selecting the insurance company you are going to buy the policy from. The rejection ratio means the ratio of claims rejected by the company in respect of claims settled.To make sure you have a smooth and hassle-free claim process, it is important to select the company with higher claim settlement ratio, as it has higher chance of setting your claim.
Apart from the above mentioned points, you should also keep a note of certain other factors. Purchasing a second-hand two-wheeler is economical over the purchase of a new one. However, don’tforget to transferthe insurance policy from the previous owner till you get a new one, in case you decide to do so. If the vehicle in uninsured and you happen to meet with an accident, you will have to bear all the costs of the repair and any third-party liability. Thus, be careful about even these minor factors when you own a two-wheeler.
Also, do not let your policy lapse to avoid legaland financial liabilities. Always go for timely renewal to stay safe. As per Motor Bill 2016, driving without insurance can attract a fine of ₹2,000 or a 3-monthimprisonment.
Whether you are buying a new two-wheeler policy or renewing your existing one, it is important to weigh in the factors that will give you worry-free rides.
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