It is now mandatory to have bike insurance for every two-wheeler running on the streets in India as per the government. But you must be smart about choosing the right bike insurance as the insurance cost is not the only cost you have to pay while making a two-wheeler purchase. This article will assist you through every important aspect you need to consider before choosing a bike insurance plan. You can find comprehensive two-wheeler insurance online that covers all sorts of expenses to help you make a quick bike purchase.
Why is bike insurance important?
Purchasing an insurance policy for a two-wheeler is mandatory as per the Motor Vehicles Act, 1988. The law states that you have to buy a third-party insurance cover for your bike to pay the damage expenses. You can claim damage according to the terms stated in the insurance plan opted by you. It helps reduce your liabilities in any unforeseen circumstances that might be coming your way.
Types of two-wheeler insurance plans:
• Third-party insurance plan:
This bike insurance plan covers expenses for the damages made to the third-party person, property, or vehicle only. It does not pay for the policyholder’s motor vehicle, vehicle owner, or rider. It is a basic plan that is a necessary purchase for any bike running on a road.
• Comprehensive insurance plan:
This bike insurance is an extension to the third-party insurance plan that pays for damages to the policyholder, insurance vehicle, riders, and many other things according to the terms stated in the comprehensive insurance plan. You would have to pay a some more for this cover, but it provides safety towards many other risks.
Top 5 factors to note before applying for a bike insurance
- Discount offers:
Purchasing a new policy or renewing an old one is an easy task. You can avail discounts on your insurance premiums if you opt to buy the bike insurance online. Make sure to check out seasonal offers by lenders to get an added benefit.
- Add-on insurance covers:
Various add-ons are offered on insurance policies by lenders. You can avail insurance for collision, fire, or pillion rider. Do make sure that if you have any specific risk factor that matters, then you should try getting an add-on for it.
- Insured Declared Value (IDV):
Make sure to check the net insured value declared under IDV in bank insurance. Your lender compiles it according to the market value of your two-wheeler after deducting depreciation. Remember that the liability of the insurance company is up to the IDV mentioned in the policy, and you will have to compensate for any damage exceeding this value.
Bike insurance can have voluntary and compulsory deductibles. You can decrease the insurance premium by contributing to the voluntary deductible that is applied over the compulsory deductible. However, remember that it will slightly reduce the insurance settlement amount.
- No-claim bonus:
Not claiming an insurance amount in the previous year policy can help you land a no-claim bonus. It can help you save a decent amount on your insurance extension and this discount increases with every claim-free year. Usually, the no-claim bonus is in the range of 10%-50% for the first three years of bike insurance.
How can you purchase two-wheeler insurance?
You can get a bike insurance cover from any insurance company directly. You can either visit the branch or apply for two-wheeler insurance online. The process is simple, and your lender will assist you throughout the process. You can compare the prices of many bike insurance providers online. It will help you get the best price for your insurance that fulfils all of your requirements.
As traffic on roads is increasing, more and more people are opting for a two-wheeler, thus boosting the demand for affordable insurance covers. Getting insurance that covers all your requirements is essential. At Paybima, you can get the best bike insurance online that caters to your specific needs. Remember, getting a comprehensive insurance policy that covers all kinds of risks is a great deal that you should never miss. You can have peace of mind, and this will help you rest assured about your safety.