8 Things to know if you want to buy the best two-wheeler insurance policy

It is clear that India loves to ride two-wheelers or bikes as evidenced by many studies. There are several people across the country who just love to ride their bikes with absolutely no destination decided. Given the lifestyle that we lead, usually long bike rides is a sort of relaxation and rejuvenation for many. India is a popular market for global automobile manufacturing companies especially in two-wheeler sector. Because it is a popular choice, many two-wheeler companies are expanding their market in the premium segment bikes. India is vastly populated with two-wheelers, and it contributes to nearly 60 percent for the traffic clogging. Two-wheelers are the most convenient and comfortable vehicle to travel anywhere for your daily work. Every household has a two-wheeler in the country as it is the most affordable vehicle for a middle class person.

If there is traffic, then mishaps and accidents or collisions cannot be controlled. In times like these, a two-wheeler insurance can be your savior. Buying a two-wheeler insurance is not only mandatory according to the Indian law, it is necessary to protect the vehicle and the owner from many unforeseen situations. There are so many general insurance companies in the country and it is hard to choose the best policy that fits our needs. Every insurer offers you discounts, cheap insurance policy, etc. Amidst of all these offers, it is easy to get lost. But you can simply avoid this chaos and confusion by doing basic research about two wheeler insurance plans which would give you a clarity on how to go about it.

Now, if you are a first time two-wheeler insurance buyer, there are few things you should know before you approach any agent or insurance company:

The Basics:

Two-wheeler insurance is easy to afford and you can choose from two types of coverage as per your requirement. Third-party liability policy is a mandatory insurance every vehicle should have. This policy is a minimum requirement policy and it covers all the bodily injuries and property damage caused to the third-party by your vehicle.

The second type is a Comprehensive Policy, which gives you an extensive coverage providing protection against own damage, accidents, third-party liability, theft, burglary, natural calamities like, floods, lightning, storm, etc. and man-made calamities like riots, civil protests, terrorist attacks, etc. The premium for both the policies are primarily based on the cubic capacity of the vehicle. The other factors that affect the premium amount are age of the vehicle, depreciation, Insured Declared Value, make and model, No-claim bonus, Manufacturing year, driving record, city of registration, etc. Due to the extensive cover capacity, the premium for comprehensive policy is slightly higher.

Uninsured Motorist Cover:

It is very common that friends or family borrow your vehicle for a purpose and they might not have an insurance or sometimes even a valid DL. The second instance is where the person has an insurance but he/she has not renewed it. In both these cases, if the driver ends up in an unfortunate accident or mishap the chances are that you might have to bare the entire repair and hospitalisation expenditure and may not get the claim amount as well. So if you have this cover, you wouldn’t have to worry about the above.

Pillion rider cover:

There are many occasions when you travel with a passenger also known as pillion rider. It is common in India that in most cases, the passenger may not have any type of insurance at all. If there is an accident and both the rider and the passenger are injured, the medical expenditure for the passenger will either have to be borne by you out of humanity or by the passenger him/herself. If you (the owner) have purchased this cover, then the passenger traveling with you will also be insured.

Coverage for specific parts:

Every biker or two-wheeler owner want to protect their bike in every possible way. Especially the engine and few custom made specs. To provide adequate cover to those specific parts, you can avail insurance for additional premium.

No-claim bonus:

NCB is percentage of discount provided to the policy holder as a reward for not claiming the insurance in a policy year. NCB is a person entity and not for the vehicle. It can be transferred at any point in time if you are changing the insurer or buying a new vehicle with a new bike insurance. But it cannot be transferred from one person to another. A minimum of 20% and a maximum of 50% can be availed for every claim free year. NCB can be carried up to 5 years.

Two-wheeler ownership transfer:

If you are selling your bike to a new buyer, it is given that you will also have to transfer the ownership of the bike. But we often forget that the insurance should also be transferred in the new buyer’s name to avoid future complications. The seller should inform the insurer within 14 days of ownership transfer and should also submit other related documents for bike insurance transfer.

Optional covers:

Most of the vehicles even today have only third-party liability cover. It is a minimum cover that the law demands. But in unfortunate events where the bike is irreparable or has been stolen or needs an assistance while you are on the way to your journey, etc. certain exceptional situations need special add-on cover that can take care of the damage without you having to spend on it. The following are few add-on covers available and you can avail any of them for additional premium:

• Zero Depreciation cover
• Roadside assistance cover
• Anti-theft device cover
• No-Claim Bonus cover
• Return to Invoice cover
• Personal Accident cover
• Pillion Rider cover
• Engine Protection cover
• Key-replacement cover  

Online shopping:

This is a digital era and accessing the internet or the online facility is easy as almost everyone have smart phones. Internet has been a boon to many of us as most of the work which needs physical presence can be done virtually. Likewise, shopping and purchasing for two-wheeler/bike insurance can also be done online within few minutes and complete transparency. Many insurers offer online purchase through mobile apps as well. You just have to download the insurer’s mobile app, and all the facility and the information will be available to you on your fingertips. Shopping for two-wheeler insurance online is the best approach because it allows you to compare various insurers, plans, discounts, coverage inclusions, reviews, etc. You can also use online bike insurance calculator to know the premium amount you are supposed to pay and will provide a clarity while you choose the insurer.

So while you purchase the two wheeler or bike insurance policy, it is necessary to do thorough research so you won’t be fooled by any agent or insurer. It is also important to keep in mind that, a cheap insurance is never a good insurance if you are looking to save few hundreds on your vehicle. When you purchase the insurance, it is important to know what are the inclusions and exclusions. Keep the above things in check when you start looking for bike insurance policy.