5 Financial Tips That Will Save Your Bike Insurance Premium

Two-wheeler is a convenient mode of transport. It has become affordable and the popularity of two-wheeled vehicles with automatic power transmission has increased in the urban as well as rural areas.

Lightweight scooters can be driven easily by women and young riders. As the size of a bike is very small compared with the car, it is exempted from the toll tax. You can park them easily and a two-wheeler can be used in heavy traffic without any issues.

Even though there are many advantages in possession of a two-wheeler, you should not forget to buy an appropriate insurance policy to fulfill your needs.

Importance of Bike Insurance

Two-wheeler insurance is mandatory as per the law and you should buy an insurance plan for many reasons. However, most of people would like to buy an insurance policy to get protection from third parties. If you meet with an accident and do not have insurance policy the incurred expense towards the damage will be paid from your pocket.

On the other hand, the insurance company will pay for your expenses when you buy an insurance policy. Therefore, avoid financial distress by buying a two wheeler insurance policy.

The amount that you pay as premium towards the insurance policy is less than the benefit that you get from the insurance company. It is easy to ride a two-wheeler than a car. However, the risk perception of a two-wheeler is higher than the car.

With a comprehensive two-wheeler insurance policy, it is possible to cover personal injury, loss or damage of the vehicle and stay secured from any third-party liabilities.

How to Save on Insurance Premium?

The financial tips offered by experts will help you save bike premium.

  • Avoid Small Claims: If you are very passionate about your bike, you will not allow a small scratch on the bike. If your vehicle is insured, you might be tempted to claim the insurance policy. However, you should understand the fact that the insurance premium will increase when you claim the policy. You will want to renew the policy by paying a higher insurance premium. Hence, it is advisable to claim the insurance policy for major issues. Thus, it will help in saving the premium.
  • Raise the Deductible: To reduce the bike insurance premium, you can raise the deductible. When you increase the deductible, you will want to pay higher out of pocket expenses while claiming the policy. Thus, you can pay an affordable insurance premium. If you cannot afford to pay higher insurance premiums, you should choose a higher deductible.
  • Attach Anti-Theft Accessories: By investing in anti-theft accessories, you can reduce the vehicle insurance premium. By installing security devices for two-wheeled beauty, it will be difficult to steal the bike. By installing anti-theft devices, it is possible to reduce the insurance premium by 5%.
  • Comparison of Insurance Premiums: The insurance premiums offered by various insurance companies should be compared so that you will settle for a suitable policy in terms of features and price. You can get an online quote by filling the online application on the official website of the insurance company. There are price comparison websites that simplify your job and it is easy to filter the insurance products as per your needs.
  • Buy Online: By buying an insurance policy online, you will get a special discount from the insurance company. The discount will be 5% to 10% and it varies as per the insurance company selected by you.

Other Options

Other options will help in saving the insurance premium in a very efficient manner.

  • NCB Discount: NCB (No-Claim Bonus) will be applied to the insurance policy while renewing the insurance policy. If you do not claim the policy in the previous year, NCB will be applied by the insurance company while renewing the policy. NCB varies from 20% to 50%. A maximum discount of 50% will be awarded after 5 claim-free years.
  • Long-Term Policy: Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous body that is entrusted with the regulation and promotion of the insurance products in India. As the tendency to buy insurance premiums on an annual basis is low, insurance companies are offering policies on a long-term basis. Now, insurance companies can offer insurance policies for up to 3 years.
    There are advantages to a long-term insurance policy. The insurance premium is the same for all three years. If you claim the insurance policy, the NCB will not become nil immediately. You will not want to renew the premium on an annual basis.
  • Size of the Engine: If the size of the bike is big, you will want to pay a higher insurance premium.  If the size of the bike is big, the engine size will also be big. Insurance companies will assess the risk factor in various ways. If the engine size (cc) increases, the power at your disposal will also increase. The risk of high-speed collisions will increase when you ride a bike quickly and for a long period. Hence, while shopping for a new bike, you should be aware of the maintenance cost of the vehicle as well. By buying an affordable small vehicle, the insurance premium will be low.
  • Bundle Insurance Products: By buying an insurance product from the same insurance company, you can get a discount on the bike insurance policy. If you buy a home insurance policy from an insurance company, you can buy bike insurance also from the same company so that the discount will be applied to the premium.
  • Membership in a Professional Association: Your membership with the Automobile Association of India (AAI) and Western India Automobile Association (WIAA) will help you get a discount on the insurance premium.
  • Two-Wheeler Insurance Calculator: You can figure out the two-wheeler insurance premium by entering your vehicle registration number, brand, model, subtype, location, registration year, name, mobile number, email address and postal code on the insurance premium calculator form. The insurance premium calculator is present on the websites of reputed bike insurance companies. You can calculate the insurance cost instantly and it is possible to compare various plans before choosing the plan as per your requirements.

Advantages of the Bike Insurance Policy

A bike insurance policy will give you absolute peace of mind as it will cover the risks on the road and you will comply with the legal obligation as well.

There are many insurance companies in India offering wide ranges of policies. You can choose a policy as per the risk perception and the budget.

  • Cashless Garage - An insurance company manages the cashless network garage facility. As soon as the accident takes place, you should inform the insurance company. The insurance company will send the surveyor to the place of the accident. The assessment of the damage will be done by the surveyor. The insurance company will help you find the nearest garage where the repairs will take place. After the completion of the repair/replacement of spare parts, the insurance company will pay the bill amount directly to the garage. Thus, you will avoid out of pocket expenses by choosing the right kind of insurance policy.
  • Personal Accident Coverage - The insurance policy will cover the damage of the own vehicle as well as third-party vehicle or property. It will also cover personal accident cover for the owner-driver. If the policyholder dies, the amount will be paid to his/her nominee.
  • Add-On Covers - Various types of add-on covers will enhance the insurance cover. Some of the add-on covers are a zero-depreciation cover, emergency road assistance, coverage of electrical and non-electrical parts, personal accident cover for passengers, nil-depreciation cover, engine protector, and consumable expenses.
  • Bonuses - Bonuses or discounts are offered for renewing the insurance policy before the due date. Insurance companies will offer a discount on the premium for subscribing to a long-term insurance policy. NCB is an additional benefit extended by the insurance company for every claim-free year.

Before selecting a two-wheeler insurance plan, you should go through the features of the policy. The features include cashless treatment, policy coverage, customer support, claim settlement ratio, medical coverage, and responsiveness of the insurance company.

Popular Insurance Plans

Listed below are the two wheeler insurance providers in India. You may choose any of them, which fulfills your requirements the most.

Bajaj Allianz Two Wheeler Insurance

  • Cashless Network Garages: Available
  • Incurred Claim Ratio: 62%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal: Available

Bharti AXA Two Wheeler Insurance

  • Cashless Network Garages: Available
  • Incurred Claim Ratio: 75%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal: Available

DHFL Two Wheeler Insurance

  • Cashless Network Garages: Available
  • Incurred Claim Ratio: 29%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal: Available

Digit Two Wheeler Insurance

  • Cashless Network Garages:
  • Incurred Claim Ratio: 76%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal:

Edelweiss Two Wheeler Insurance

  • Cashless Network Garages: Available
  • Incurred Claim Ratio: 145%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal: Available

HDFC ERGO Two Wheeler Insurance

  • Cashless Network Garages: Available
  • Incurred Claim Ratio: 82%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal: Available

 

IFFCO Tokio Two Wheeler Insurance

  • Cashless Network Garages: Available
  • Incurred Claim Ratio: 87%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal: Available

Kotak Mahindra Two Wheeler Insurance

  • Cashless Network Garages: Available
  • Incurred Claim Ratio: 74%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal: Available

Liberty Two Wheeler Insurance

  • Cashless Network Garages: Available
  • Incurred Claim Ratio: 70%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal: Available

National Two Wheeler Insurance

  • Cashless Network Garages: Available
  • Incurred Claim Ratio: 127. 50%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal: Available

New India Assurance Two Wheeler Insurance

  • Cashless Network Garages: Available
  • Incurred Claim Ratio: 54%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal: Available

Oriental Two Wheeler Insurance

  • Cashless Network Garages: Available
  • Incurred Claim Ratio: 112.60%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal: Available

Reliance Two Wheeler Insurance

  • Cashless Network Garages: Available
  • Incurred Claim Ratio: 85%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal: Available

SBI Two Wheeler Insurance

  • Cashless Network Garages: Available
  • Incurred Claim Ratio: 87%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal: Available

Shriram Two Wheeler Insurance

  • Cashless Network Garages: Available
  • Incurred Claim Ratio: 69%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal: Available

TATA AIG Two Wheeler Insurance

  • Cashless Network Garages: Available
  • Incurred Claim Ratio: 70%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal: Available

United India Two Wheeler Insurance

  • Cashless Network Garages: Available
  • Incurred Claim Ratio: 120. 79%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal: Available

Universal Sompo Two Wheeler Insurance

  • Cashless Network Garages: Available
  • Incurred Claim Ratio: 76%
  • Policy Term: 01 years to 03 years
  • Personal Accident Cover: Rs. 15 Lakh
  • Insurance Renewal: Available

Note: The incurred claim ratio mentioned above is as per the IRDA annual report 2018-19. Also, insurance companies are in alphabetical order.

Risk Factors Covered by the Bike Insurance Policy

The following risk factors are covered by the bike insurance policy:

  • Protection of Vehicle - The vehicle will be protected by the comprehensive bike insurance policy. The vehicle will be protected from various perils including man-made disasters. If there is damage to the own vehicle or the third-party vehicle, the insurance company will pay the compensation as per the terms and conditions of the policy. The cost will be either reimbursed by the company or cashless service facility will be offered at the network garage.
  • Insurance for Riders - There will be coverage of the rider even though the rider is not the policyholder. However, the rider should have a valid driving license at the time of the accident.
  • Third-Party Damage - No damage has to be paid by the owner when the vehicle causes damage to the third-party property or vehicle. The insurance company will cover the costs.
  • Partial or Total Damage of the Vehicle - your insurance policy will cover partial or total damage of the vehicle due to natural or manmade disasters. Insurance companies will have a tie-up with garages spread across the country. Hence, the service will be offered by the insurance company in a very efficient manner.
  • Injury or Death of Third-Party - Your insurance company will pay for the expenses involved due to injury or death of the third-party. The ‘liability clause’ will ensure that the third-party person, as well as the property, is protected by the insurance plan.

Documents Required to Apply for Bike Insurance

The following documents are required to apply for bike insurance:

  • Vehicle registration copy
  • Copy of driving license or PAN card for identification
  • Aadhaar card or other identity card issued by a government agency for residence proof

Exclusions of an Insurance Policy

As you know the benefits of a bike insurance policy, you should be aware of the exclusions applied by the insurance company.

The following exclusions are applied by the insurance company:

  • Wear and tear of the vehicle
  • Damage to accessories
  • Damage to the vehicle by driving under the influence of drugs
  • Damage to the vehicle by driving under the influence of alcohol
  • Damage to the vehicle without possessing a valid driving license
  • Concealment of information while applying for an insurance policy

Conclusion

To reduce the financial burden with the maintenance of a two-wheeler, you should choose the right type of bike and insurance policy as per your budget. The make and model of the vehicle and location will have an impact on the insurance premium. You should also follow the safe riding conditions to minimize the risk of accidents.

The bike insurance premium will decrease with the application of the no-claim bonus. You should go for a long-term policy to reduce the expenses and the policy should be renewed before the deadline. You are advised to buy a comprehensive bike insurance policy so that all kinds of risks are covered in a very efficient way.

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