Two-wheelers have been a preferred mode of transport in India as it is not only cheaper to buy, but it also saves time and fuel. With an alarming rise of vehicles on the road in Coimbatore, it is important to have an insurance policy on your two-wheeler.
There are two types of cover offered by insurance companies for two-wheelers: liability-only and comprehensive cover. While a liability-only policy provides financial protection against third-party liabilities, a comprehensive package will also cover own damages and injuries. The Government of India made it mandatory to have a valid third-party liability plan on any two-wheeler in India. Apart from it being a legal requirement, it is smart decision to pay a small premium to ensure you are financially protected in case you are ever in an accident.
Different policies available in the market are designed to cater to the varied needs of customers. Premiums differ between each person and between vehicles. Choosing the best insurance provider is relative to your needs and what you are looking for. Some of the popular two-wheeler insurance providers in India have been listed below.
*Insurance companies have been listed in no particular order.
Cashless facility can greatly reduce the financial burden on a policyholder in the event of an insurance claim. Every insurance provider ties up with different garages. If the customer opts to have their vehicle fixed at a non-network garage, then they will have to pay for the bill and later claim a refund from the insurer. But with cashless settlements, the insurance provider will pay the bill directly to the garage. To locate a partner garage, insurance providers provide the following options:
Under cashless settlements, if the customer avails services at a network garage, then the insurance company will settle the bill directly. The customer is only required to pay for any portion of the bill that is not covered by the insurance plan, such as depreciation of spare parts.
Reduces financial burden - The bill for repairs will be settled by the insurance company directly with the garage. The customer will only be required to pay for any part of the bill that is not covered by the insurance plan.
No branch visit - With cashless settlements, customers are not required to visit the insurance branch and submit claims forms and documents. Everything is handled at the garage itself. The customer needs to provide their policy number, information about the incident leading to the claim and submit any documentation necessary. The garage will handle the rest with the insurance provider.
Quicker processing - The processing time is shortened because the information required is much lesser since the garage and the insurance company are tied-up. There will be lesser hassles and the turn-around time for approval and claim settlement will be shorter.
Quality - When fixing a bike at an unknown garage, you might fear the risk of them replacing parts with duplicates or damaged ones. At network garages, since they are tied-up with the insurer, you will be assured of good quality service.
Selecting the best insurance policy for your two-wheeler can be a difficult task as there are plenty of options in the market. Depending on the coverage you require, the benefits you are seeking, and the premium amount you are willing to pay, you can select an ideal policy from a number of insurance providers in the market. Listed below are some of the important things to keep in mind while choosing a policy for your two-wheeler in Coimbatore:
Cost of the Plan - Many factors play a role in determining the premium of the insurance plan. Premiums are the amount you need to pay to purchase the plan. Insurance providers will take into consideration the make and model of the bike, the cubic capacity, the city of registration and purchase, the details of the driver and so on.
Choice of Coverage - An insurance plan can safeguard you financially if something were to happen. You can opt for a liability-only policy or a comprehensive package. Comprehensive cover offers protection against damages to self and own vehicle as well. When it comes to insurance, the best policy is relative to the customer. A third-party liability policy is mandatory by the Government of India. It is advisable to choose a comprehensive package to be fully protected in the event of an accident.
Exclusions - Always ensure you are aware of the exclusions under the plan. Under these circumstances, the insurer will not be liable to pay for any insurance claim made by you. Some of the common exclusions are driving under the influence, invalid licence, gross negligence in case of theft, war, nuclear-related incidents, consequential losses and so on.
Claim Options - There are two types of claim settlements - reimbursement and cashless. If your insurance provider offers cashless settlements, you will not be required to pay from your own pocket for the repairs. The cashless option saves time and the hassle. It also reduces the financial burden you may have to bear.
Deductibles - Deductibles is the amount you are willing to pay in the event of a claim. The remainder of the bill will be paid for by the insurance provider. Choosing a high deductible will lower your premium, however, in the event of a claim, you will be required to pay more for the cost of repairs. If you choose a lower deductible, then your premium will be higher, but in the event of a claim, the insurance company will pay a larger portion of the bill.
No-Claim Bonus - A no-claim bonus (NCB) is a discount awarded to customers who do not make a claim during the policy term. When a customer renews the two-wheeler insurance policy, the insurer will provide a discount on the premium amount. NCB is non-transferable between policyholders, but can be transferred between different insurance providers. NCB is 20% for the first claim-free year and subsequently increases to 25%, 35%, 45% and 50% maximum.
Limits on Claims - Insurance providers usually have limits on the amount you can claim in the event of an accident. For third-party death claims, there is usually no limit but for damage to third-party property, the claims are capped at Rs.1 lakh. The cap on claims for self will depend on the sum assured selected by the insured.
When you sell your bike, you need to make sure that all legal formalities have been fulfilled. You need to inform the Regional Transport Authority (RTO) of the sale of the vehicle and apply for a No Objection Certificate (NOC). You need to hand over the necessary documents to the new owner and transfer the ownership name.
Insurance providers give policyholders the option of transferring the insurance policy when they sell the bike. To transfer the bike insurance policy to the new owner, you can follow the steps below:
If you choose to sell your two-wheeler, you need to transfer the ownership of the bike to the next owner. By doing this, you will ensure that you will not be held accountable for any future liabilities associated with the bike.