Process of Selecting a Bike Insurance Policy in India

4 Steps for Selecting a Bike Insurance Policy

Buying bike insurance means you have to invest your time and money in selecting the best one for you. There are annual plans and long-term plans available in different types of bike insurance policies. Once you purchase the policy, it will benefit you for the specified period in your insurance plan.

There are 4-steps involved in buying a bike insurance policy. Below we have discussed all of them in details.

Choose the Policy Type

There are usually two types of insurance policies offered by bike insurance companies in India. To know more about them read below-

Third-party Bike Insurance

It is the mandatory policy by the government that every bike owner should have. Also, it is one of the instant ways to protect against any third-party liabilities which might arise in any road accident or mishap. If you are the one who is looking for minimum coverage at less price, this plan is for you.

Getting third-party liability bike insurance online is an effortless process that requires submitting minimum documents. Also, you get a higher risk covered by paying a small premium amount to your insurer.

Your third-party bike insurance covers death or injuries to the third party in case of an unfortunate accident caused by your bike. Moreover, it covers the loss of income due to the physical disabilities in the accident. It also covers third-party property damage up to Rs 1 lakh, determined by IRDAI. In case the third party dies in an accident because of your bike's fault, the dependents of them will be compensated for the sudden loss of income.

Additionally, this bike insurance plan is mandatory, and it will save you from any penalty.

Comprehensive Bike Insurance

A comprehensive plan offers you coverage against all kinds of unforeseen mishaps that can cause any damage to your bike. It is the combination of two covers i.e.- own damage and third-party liability cover.

Under this plan, all kinds of accidental damages to your own vehicle will be covered, including damages and loss by collision, natural calamities, man-made disasters, theft, etc. You also get a discount of 20-50% during the renewal, if you have not raised any claims in the past year.

You can also buy any add-on cover to enhance your coverage under this plan. So, if you are looking for an all-inclusive policy, a comprehensive bike insurance policy is for you. With the unpredictable nature of life, buying this policy will give peace of mind because you are covered for all the damages in one plan.

Select the Add-on and Other Features

After deciding which plan to buy, the next step would be selecting the features that will affect your bike insurance premium.

If you have chosen a comprehensive plan, you can buy add-on covers. An add-on cover will increase your premium, but it will give extra coverage for particular damages caused to your bike. In India, it is mandatory to buy personal accident cover for two-wheeler owners and it will give you an assured sum of Rs 15 lakh in case of death or total disability of the insured bike owner in an accident.

Moreover, you have to choose deductibles while buying a plan. A deductible means the amount you pay from your pocket before your insurer will pay at the claim settlement. Higher deductibles mean lower premiums, whereas lower deductibles mean higher premiums. Your bike insurance company will not settle the claim if your raised claim is lower than the deductibles. Therefore, you must choose deductibles wisely.

The next thing will be choosing your Insured Declared Value (IDV). An IDV is a maximum amount that your insurer will compensate for during the claim settlement. Therefore, depending on your selected IDV, claims are made in case of total loss or theft.

Some other factors that will increase your premium amount are the number of claims made in the previous years and driving habits. In case you are an irresponsible driver and raised more claims, your premiums will go up.

Comparison and Evaluation

The third step would be to compare your bike insurance online. If you have chosen a comprehensive plan along with add-on covers, your premium will be different from the one that has chosen a third-party plan. Also, different insurers will quote you a different price. So, it is better to compare and evaluate considering various components like deductibles, coverage, IDV, and add-on covers before buying the policy.

Make Purchase

The fourth and last step would be buying your bike insurance policy. You can buy it online as well as offline. For offline mode, you will have to visit the nearest branch of the selected insurance company. Here you will submit all the required documents and fill out a form duly signed. In offline mode, you can pay in cash or any digital payment.

In case you choose the most convenient and hassle-free mode, i.e.- online mode, you will enjoy all the benefits associated with it. In this, you have to visit the selected insurer's website, fill out a form and give details regarding your bike. Then submit e-documents there only. At last, you will have to pay directly through any of your favourite online modes.

Conclusion

In this digital world, where you can check, compare, select, and buy a bike insurance policy online, do not forget to consider others factors associated with it. You must also check network garages, claim settlement process, after-sales service, and read policy documents carefully before making a purchase.