Two-wheelers are the preferred mode of transportation in India, owing to their cost-effectiveness, high fuel efficiency, and low maintenance costs. They are extensively used by daily commuters for short-distance travel and to work. However, riding on roads can be unsafe and uncertain. Therefore, it is highly recommended to purchase a two-wheeler insurance policy that covers both you and your vehicle against any unforeseen damage or loss. Besides providing financial security, it is also a legal requirement for two-wheeler owners in India.
Two-wheeler insurance, especially a third-party cover, is a must-have for every bike or scooter owner in India. It offers protection against the financial liabilities that might arise due to damages caused to a third-party person, vehicle, or property in case of an accident. For example, a comprehensive TVS two wheeler insurance helps you avoid the high expenses that may be incurred in case of an unfortunate event including accidents or theft. It also offers protection against damage caused by natural events such as fires, floods, and cyclones.
Hence, it is highly recommended that you purchase a two-wheeler insurance policy that suits your requirements and offers adequate coverage.
Important Things To Keep In Mind While Buying Bike Insurance In India
To make sure that you get the best two-wheeler insurance policy for your vehicle, it’s crucial to take into account certain factors when making the purchase. These factors include all the important aspects such as coverage, premium, and other essential considerations.
1. Type of Coverage: There are primarily three types of two-wheeler insurance policies available in India- third party insurance, standalone insurance and comprehensive insurance.
- Third-party insurance is designed to offer coverage exclusively for damages caused by your bike to a third party’s property or vehicle. This type of insurance does not cover theft or damages incurred by your own vehicle. It’s comparatively more affordable than a comprehensive cover due to the limited coverage.
- A standalone insurance policy provides coverage for damages sustained by your bike due to events like theft, natural disasters, and more. You can enhance your coverage by adding a standalone own damage bike insurance policy as an add-on to your existing third-party insurance.
- A comprehensive insurance policy covers both third-party liabilities and damages caused to you and your bike. It provides wider coverage and offers additional benefits such as personal accident cover, pillion rider cover, and coverage for damages caused due to natural calamities or theft.
2. Claim Settlement Ratio: The primary purpose of purchasing a two-wheeler insurance policy is to receive help from the insurer when required. To assess the effectiveness of an insurance company, you can look at its Claim Settlement Ratio (CSR). The CSR is determined by dividing the total number of settled claims by the total number of claims filed during a specific. A higher CSR indicates that the insurer is financially stable and has a strong record of settling claims. Thus, having a thorough understanding of the CSR of various two-wheeler insurance providers can help you maximize the benefits of your insurance policy.
3. Insured Declared Value: Insured Declared Value (IDV) is a crucial factor in determining the premium of your comprehensive insurance policy, as it represents the present market value of your bike. In the event of an accident involving your motorcycle/scooter, the compensation you receive will be based on its IDV. Therefore, it’s important to declare the correct IDV, as it not only affects the premium you pay, but also the benefits you’re entitled to receive.
4. Premium Amount: The premium for a two-wheeler insurance policy is the amount that you must pay to receive the benefits provided by the policy. The premium for a two-wheeler insurance policy primarily depends on the cubic capacity (CC) of the vehicle. The India motor tariff categorizes cubic capacity into three groups: 0-150CC, 150-350CC, and 350CC and above. A higher cubic capacity engine typically translates to a higher premium. Another crucial factor that determines the premium is the location of the vehicle.
The insurance companies classify cities into Zone A and Zone B based on their geographical location. The cities falling under Zone A attract higher insurance premiums than those in Zone B.
5. Exclusions: Knowing the exclusions in your insurance policy is crucial because they are the scenarios where the insurance company will not provide coverage. When purchasing a bike insurance policy, it’s essential to review the list of exclusions mentioned in the policy document alongside the coverage. Some common exclusions that you may find include using the vehicle while under the influence, damage caused by nuclear or war-like activities, and damages incurred outside of specific geographic boundaries.
6. Additional Features: When purchasing two-wheeler insurance, it’s worth considering additional features such as zero depreciation cover and no claim bonus. These can provide added benefits and help ensure that you have comprehensive coverage.
- Zero depreciation cover means that the insurer will not factor in the depreciation of the bike or scooter parts when settling a claim. This provides comprehensive coverage for the two wheeler without taking into account its depreciating value.
- No Claim Bonus is an additional benefit that can be obtained if the policy has not been used to file a claim during the policy term. The NCB is provided as a discount on the premium, which can accumulate up to a maximum of 50%.
Ensuring the well-being of your family, vehicle and yourself is your foremost responsibility. Purchasing insurance for your two-wheeler is the first step towards achieving this goal. So, keep the above-mentioned factors in mind when searching for the best insurance policy for your vehicle.
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