What Are the Things to Remember When Purchasing a Two-Wheeler Insurance Policy?
Two-wheelers in India are a popular mode of transport. Preferred for it affordability yet offering convenience in travels is what makes it go-to alternative to public transport in the country. Numbers too support this fact. As reported by Telegraph India, in 2019, the sales recorded an all time high of 21 million units. Despite the COVID-19 pandemic, the sales numbers did not dampen much and yet recorded 17 million units till October 2020. With these consistent high numbers, it certainly is a favoured choice of commute.
But when you purchase a two-wheeler, you also need to comply a couple of legal requirements which include its registration with the concerned RTO and the need to buy bike insurance online or offline. So, if you have bought a new two-wheeler and are looking to get it insured, here’s what you need to keep in mind:
*Policy coverage
The foremost important thing to know before you buy a bike insurance plan is the policy coverage. Two-wheeler insurance plans are available in two types—a third-party plan or comprehensive plan. As the name suggests, a third-party two-wheeler insurance is the one that safeguards against third-party legal liabilities arising due to an accident or damage. These liabilities can be either in form of injury to such other person or damage to their property. Contrary to third-party plans, comprehensive policies offer a broader coverage. They offer financial coverage for the damages to your vehicle too. While comprehensive policy is an alternative to third-party plans, third-party policies are the minimum required insurance coverage as stipulated by the Motor Vehicles Act. Hence, the bike insurance price for these third-party policies is regulated by the insurance regulator, IRDAI. You can visit the official website of IRDAI for further details.
*Understanding IDV and its impact
Before you finalise on an insurance plan, it is essential to understand the concept of IDV and its consequent impact. Insured declared value or IDV is the maximum amount that the insurance company pays as compensation in the event of total loss or complete damage. This is based on the current valuation of your vehicle and has no connection with the market price of it. Since the IDV is the maximum compensation offered by the insurer, it impacts the risk that an insurance company has to undertake. Hence, higher the IDV, higher is the premium amount and vice versa.
*Add-on riders
Add-ons are optional policy covers that can be purchased with comprehensive policies or standalone own-damage plans. These add-ons can be used to enhance the policy scope based and are based on the coverage opted for. While there are various add-ons that can be bought, they have a direct impact on the bike insurance premiums and hence must be carefully selected. When you buy a two wheeler insurance third party plans have no option to purchase such add-on covers.
*Timely renewal
Next, you need to remember that insurance is a consistent requirement. Hence, you must ensure you policy is renewed well in advance for a continued insurance cover. Any lapse in the policy coverage will mean loss of renewal benefits along with your vehicle being exposed to perils. *
* Standard T&C Apply
These are some critical considerations to remember when buying a two-wheeler insurance plan. Make sure to familiarise with the policy you purchase by reading the terms and conditions thoroughly along with ensuring that your coverage remains active. Also, do not forget to check for the insurance company’s reputation before you make the payment. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
