The Motor Vehicles Act of 1988 lays down the mandatory requirement to have an insurance cover for all vehicles registered in the country, which includes both cars and bikes. This requirement is placed to safeguard the insured as well as the one facing injuries due to any mishap.
There are two types of bike insurance policies that you can buy, a third-party insurance plan or a comprehensive cover. A third party bike insurance policy is the bare minimum that all bike owners need to purchase. This plan ensures any legal liabilities against you, the policyholder, are covered by the insurance policy. Albeit this policy covers damages to third persons, it does not cover any damages to your bike. To ensure your policy covers damages to your bike as well, you can opt for a comprehensive policy. It is an all-rounder policy offering maximum coverage for your bike.
Along with the myriad alternatives of plans available, it can be confusing which policy to choose from. This article elaborates on some of the essential dos and don’ts when buying a bike insurance policy.
What you should do when buying a bike insurance policy?
Here are some of the things you should be taking into consideration when buying a bike insurance policy. Let’s have a look –
Understand the types of policies and their coverage: Start with understanding the intricacies of the policy. This means the coverage of the insurance plan, the features it offers and the types of plans that can be bought. This will help to determine whether a particular policy checks all the right boxes.
Discover the various add-ons that can enhance the coverage: The next step is to check for any additional features that are available as optional to your insurance plan. These features are called add-ons and increase the scope of your bike insurance policy. Since they are optional features that can be purchased, they also impact the bike insurance price.
Know about the IDV of your policy: IDV or insured declared value is one critical factor that impacts the overall premium of your policy. It is the maximum amount that the insurance company pays in the event of total loss or damage. For comprehensive policies, the IDV can also be changed within a specified range. So, take a note of how the IDV impacts your insurance premium and accordingly set one based on your requirements.
Comparison is the key: The most important thing to note when buying a policy is to compare before your buy. Among the myriad options, comparison helps to arrive at a policy that strikes out all your requirements. For that, a bike insurance calculator is a handy tool that aids the comparison process.
What do you need to avoid when buying a bike insurance policy?
Here are the don’ts when buying a bike insurance policy that you should be aware of –
Do not base your policy purchase solely on premiums: Remember that price is not the only determinant of buying a bike insurance policy. Many factors in combination decide the suitability of your policy.
Do not overlook the terms and conditions: Once you have finalised your bike insurance plan, make sure to familiarise yourself thoroughly with its terms and conditions. This will help to know of any conditions that might be implied as a consequence of an event. For any concerns about it, you can also approach the insurance company and seek clarifications.
Do not conceal any information: When applying for a policy, do not hide any information, be it personal details or related to your vehicle. This can have the effect of rejection of your application by the insurer.
These are dos and don’ts to remember when buying a bike insurance cover. Make sure to keep in mind this information to have the best policy as per your requirements. 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.
Hemant Kumar is a project manager at Tridindia with more than nine years of commendable experience in writing about LMS, translation, and IT. His unmatched talent and passion for digital marketing gave him the opportunity to work as a multi-tasking project manager at TridIndia’s sister company, Link Building Corp. Today, he contributes to the world by imparting knowledge on SEO, link building and internet marketing etc., that helps business owners grow their online business.