According to the Motor Vehicles Act of 1988, you must buy an insurance policy for your bike. Hence, when there is so much emphasis on buying a bike insurance plan and securing your finances, it becomes crucial to consider several aspects when purchasing a plan. In this guide, we will walk you through the several things you must seek when looking for the best insurance policy for bike.
How to Choose the Best Insurance Policy for Your Bike?
Choosing a comprehensive plan for your bike offers you an all-inclusive cover. However, you must evaluate certain points before selecting the best insurance plan for your vehicle. Here are some pointers you must understand and look for while choosing an insurance policy for your bike:
1. Understand Your Insurance Requirements
The initial step before you start looking for the ideal bike insurance plan is to know and understand your insurance requirements and budget. You can select from the three bike insurance plans available depending on the coverage: third-party cover, standalone damage cover, and comprehensive cover. Hence, considering your existing liabilities and other expenditures, you can choose the policy that aligns with your requirements.
2. Know the Insurance Declared Value (IDV)
To put it simply, IDV refers to the market value of your bike. It is the maximum sum insured fixed at the time you purchase a bike insurance plan. In addition, if your bike goes through any unfortunate event, such as a major accident or theft, it is the maximum amount you will receive after filing a claim. Hence, when the value of your bike depreciates, the IDV will decrease, resulting in lower premiums year-over-year.
3. Consider the Premium Rate
Another crucial factor to seek when choosing the best insurance policy for your bike is the premium rate. The cubic capacity (cc) is the significant factor when determining the premium rate. According to the India Motor Tariff, there are three categories: 0-150 cc, 150-350 cc and 350 cc and above. The higher your bike’s cubic capacity, the higher the insurance premium.
4. Look for Riders
When you plan to buy bike insurance, the basic plan may not be able to offer you extensive coverage. It is when the add-on riders come to the rescue. You can add riders to your basic plan to receive extra benefits in case of an unfortunate incident. For instance, ACKO offers zero depreciation cover, personal accident cover, etc., as add-ons for riders.
5. Select a Reputed Insurance Company
Since several insurance companies offer bike insurance plans, you must conduct thorough research in choosing the right one according to your insurance requirements. You must check their reputation and compare their premium amount to make an informed decision. In addition, you must check the claim settlement ratio to understand their efficiency during the claim process.
6. Understand the Policy Exclusions
Another key thing to consider when looking for the best bike insurance policy is the exclusion list. You must understand the scenarios during which you cannot file a bike insurance claim. In addition, you can go through the policy document before buying the plan to know the exclusions. For instance, mechanical or electrical breakdown, regular wear and tear, damage that occurred outside the geographical limits, etc., are a few instances when you cannot file a bike insurance claim.
What are the Benefits of a Comprehensive Bike Insurance Plan?
There are several reasons for choosing a comprehensive bike insurance plan over third-party or standalone damage insurance. Here, we have listed a few reasons for selecting a comprehensive bike insurance policy:
- Maximum Financial Protection: When you opt for comprehensive bike insurance, you will receive maximum financial coverage in case of bike damages and third-party liabilities.
- Safeguard Against Liabilities: The comprehensive bike insurance plan offers legal and financial protection from third-party claims, such as damage to their vehicles or injuries to themselves.
- No-Claim Bonus Benefit: If you do not file a claim for your bike insurance during the policy tenure, the insurer will offer you a discount in the form of a no-claim bonus when you renew the plan.
- Offers Peace of Mind: One of the key benefits of comprehensive bike insurance is that it gives you peace of mind, knowing you are financially protected during any unforeseen event to your bike.
- Get Add-Ons: When you opt for comprehensive bike insurance, you can consider adding riders, such as depreciation cover, consumables cover, etc., to receive extensive coverage from your insurance policy.
Final Words
Hence, when you buy bike insurance in India, you must consider the above-mentioned things to pick the right insurance according to your insurance requirements. Moreover, it is crucial to understand your insurance requirements in advance so that your preferred insurance plan aligns with your bike insurance requirements and offers you extensive coverage.
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