Buying a two-wheeler, whether it’s your first or you are upgrading to a better model is an exciting and proud moment. You may take weeks or months to decide the correct make and model for you that will serve you the best when on road. You keep a lot of factors in mind before you make the decision to pick the right one. There are a lot of considerations like mileage, brand, model, price and design. But we seldom give half as much thought to the two-wheeler insurance that we are buying along with it. Given that one can get bike insurance online, with a few clicks, at any time from anywhere, there is no reason to delay the purchase.
Why Should You Buy Two-Wheeler Insurance?
When you ride a two-wheeler on road there is always a chance of dents and damages due to collision or accidents and there could be damage to your two-wheeler or third party. The simplest way to protect yourself from financial burdens due to such incidents is by purchasing two-wheeler insurance. It will not just protect you from unexpected expenses but also help you stay compliant with Motor Vehicles Act, 1988 as per which it is mandatory to have third-party insurance in India.
While purchasing two-wheeler insurance, any confusion or a lack of knowledge can lead you to pick the wrong choice. Hence, it is important to understand insurance and its components.
Benefits of Buying Two-wheeler Insurance Online
Purchasing bike insurance online makes the process much faster and easier. It allows you to purchase the policy from the comfort of your home. When buying the policy online, you get to compare different policies from different insurers and see what suits your needs the best. Since there are no middlemen, you can also avail many discounts and other benefits when purchasing insurance online. Additionally, purchasing a bike insurance policy online is a paperless and quick process and you will get the policy document in your email within minutes of purchase.
Here are some important factors you must keep in mind when purchasing two-wheeler or bike insurance online:
- Type of two-wheeler insurance policy: There are a myriad of two wheeler insurance policies available online. It is easy to understand and not as complicated as it is made to be. There are essentially two different types of bike insurance online.
- Third-party bike insurance: In India, as per the Indian Motors Act, 1988, it is mandatory to have third-party bike insurance when you are driving on the road. As the name suggests, it only provides coverage against losses or damages occurring to the third party.
- Comprehensive bike insurance: While third-party insurance covers you legally, comprehensive insurance will cover damages incurred to your own vehicle due to accidents as well as coverage of third-party insurance. Additionally, comprehensive insurance also provides you coverage against theft and natural and manmade disasters.
- Premium amount: The premium amount that you need to pay is another major factor to be considered and is affected by a number of clauses. One of the major determinants of premium amount in bike insurance online is the engine capacity. The higher the capacity of your bike engine, the higher will be the premium amount. Another vital determinant of the premium amount is the location of your purchase as well as the make and model of your bike.
- Insured Declared Value of your bike: The present market value of your bike is an important factor when the premium amount is calculated in comprehensive bike insurance online. The IDV you set while buying bike insurance is very crucial. It is the maximum amount that the insurance company is liable to pay you in case your bike is stolen or totally damaged. For high-end sports bikes, the insured declared value will be higher than that of a regular bike. It is important to remember that the higher the IDV, the higher will be the premium amount.
- Claim settlement ratio: The prime purpose of buying bike insurance online is to get a reimbursement against your losses at the time of accident or theft. A claim settlement ratio is helpful as it tells you how reliable the company is in terms of settling insurance claims. A claim settlement ratio is basically the ratio of claims settled by the insurance company as compared to the total number of claims filed in a particular financial year.
- Policy Exclusions: Exclusions are the risks that are not covered by the insurance company. Hence, knowing what is covered in your bike insurance is not just enough. One also needs to be aware of what is not included in the insurance policy to avoid getting disappointed later on. You certainly do not want your claim to be rejected at a crucial time because you were not aware of the exclusions. Hence, it is advisable to check properly for exclusions, avail add-on riders if available for the same and overall depending on what you are looking for, try to avoid insurance policies with too many exclusions, even if it comes at a lesser premium.
To make the most of your bike insurance online, you must also consider many other factors like grievance handling, customer support, add-on covers available, IDV, no claim bonus and app support. Having a two-wheeler insurance policy is crucial not only to fulfilling legal obligations but also to avoid financial strain during a mishap. Hence, ensure there is no confusion about policy facts and matters so you do not regret your decision later on. Go through policy details, and have a thorough understanding of the claim settlement ratio and claim to settle time and process before making an insurance purchase.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales