Buying a two-wheeler for the first time? Know about two-wheeler insurance policy

Rupanjali Mitra Basu October 24, 2017May 13, 2021

A teenager stepping into adulthood covets the trendy two-wheeler for its speed and style statement. On the other hand, an office-going middle-aged man buys a two-wheeler for ease of conveyance. A housewife on the contrary considers buying a scooty for the daily household chores of buying groceries or picking and dropping her children to school. Whatever be the reason, a two-wheeler is a favored mode of transport for young and old and males and females alike.

When you buy a new two-wheeler, you look deeply into the MMV (Make, Model, Variant) of the vehicle, its cost, mileage and also the reviews. But, do you pay any attention to the insurance policy associated with it? The Motor Vehicles Act, 1988, has mandated every vehicle on Indian roads to have a valid insurance cover. Therefore, like it or not, if you are buying a two-wheeler you would also have to buy a two-wheeler insurance cover.

Do you know the important aspects of such an insurance cover? If not you should. So, here are some important and rudimentary features of your two-wheeler insurance policy that you should know:

The type of plan

There are two types of two-wheeler insurance plans available in the market – third party liability only plans and comprehensive plans. Third party plans are mandated by the Motor Vehicles Act. These plans cover financial liabilities against third parties for any damage or bodily injury caused by your two-wheeler. Comprehensive plans, on the other hand, cover third-party liability as well as damages faced by you and your bike. So, in case of an accident, any cost of repairing your bike is also paid by comprehensive plans. As such, comprehensive insurance plans score over liability only policies which have a limited coverage.

Tenure

Thanks to the new IRDAI regulations, two-wheeler insurance policies are now being offered for a longer tenure. While earlier the policies had a one-year coverage period, with the change in regulations you can avail coverage for 2 or 3 years at a stretch. Long-term two-wheeler plans are better as they eliminate the hassle of annual renewals and save on the premium costs too.

Add-ons

Add-ons are additional coverage features which are available with comprehensive two-wheeler insurance policies. You have to pay an additional premium for availing any add-on cover you want. The additional premium is very low while the coverage is very helpful. Some important add-ons which you can consider include roadside assistance cover, zero depreciation cover, passenger cover, etc.

NCB Discounts

Every year when you don’t make a claim in your two-wheeler insurance policy you get a reward in the form of No Claim Bonus (NCB). This NCB discounts the premium which you are required to pay when you renew your policy. Moreover, the NCB discount is cumulative in nature. The rate of discount increases every successive year in which no claim is raised. In fact, you can claim a maximum discount of 50% on your renewal premium by accumulating your NCB discount for 5 or more consecutive claim-free years. Know your NCB discounts and save money.

Making a claim

What use is your two-wheeler insurance policy when it doesn’t come to your rescue in the time of claim? Making a claim in your two-wheeler insurance policy is a simple process. However, there are some steps which you are required to follow correctly to get your claim settled. For instance, the very first step in making a claim is informing the insurer. After that, a survey is done of the damages before repair works start. Only if the steps are followed correctly would you be able to get your claim settled easily. So, know the claim settlement process of your insurance policy beforehand so that when crisis strikes you would know exactly how to handle it.

Renewals

Whether you buy a one-year insurance cover or a multi-year cover, renewals are essential as long as you own your bike. When it comes to renewals many of you either ignore it or forget about it and the policy lapses. A lapse in your bike insurance has serious consequences. Firstly you violate the law of having your vehicle insured. If caught without insurance you would face heavy penalties. Secondly, you take the financial risk of any damages on your head. Thirdly, renewing a lapsed policy requires inspection done by the insurance company. This inspection takes time and might increase your premium outgo. Lastly, if not renewed within 90 days of lapse, you lose your entire accumulated NCB discount. So, timely renewals are important.

Know how to renew your lapsed policy

Be conversant with these important factors of your bike insurance policy and enjoy a smooth ride on your new two-wheeler. Your insurance policy would take care of any contingencies if they arise.

Here are some cool bikes for you to consider