As a bike or a scooter driver you always enjoy the convenience of getting away with the rough city traffic easily. This also has become a style statement for today’s youth .Other than the convenience and styling affordability is key factor when you compare it with a four wheeler. But this doesn’t means that all these convenience and affordability comes with zero cost.
What if there is boulder stone right in front of you while making a sharp turn around those dipping curves? Say you collide with another biker or a person and you don’t have the adequate funds to pay the injured or what if your favorite bike gets stolen. A two wheeler insurance policy is actually a friend in need in situations like these. But while buying one you always need to understand nuances and processes behind it. There are many offerings from various insurance companies which exist but to understand the one which actually fit into your requirement call the need to understand the intricate details. Not so thought over decisions can lead you to burn a lot of money without generating the right amount of value.
On this note let see what you actually need to understand before you buy a two wheeler insurance policy so that you can make an informed choice.
Types: Two wheeler insurance policies offered today actually come with two variants, the Comprehensive policy and the third party policy. As an owner of any vehicle we feel you are already aware of the fact that it is mandatory as per government guidelines you need to have a insurance policy and even a third party policy can suffice that need but it is always advised to have a comprehensive one. But the question is why it is so?
That is where the whole difference is all about and why you should pay an extra for a comprehensive policy
A simple third party policy comes to your help only when you need to take care of losses happening due to an accident to a different person other than you and is caused due to your bike or scooter. So though the policy fits into the mandatory government guidelines but it actually doesn’t serves the purpose for which you are looking for a two wheeler policy. This is a reason why the other variant is called comprehensive.
A comprehensive Two Wheeler Insurance policy offers for cover against financial cost that you need to bear in case of a damage happening due to accident, in situations like where your bike get stolen or even in case damages happening due to natural calamities everything gets covered under a comprehensive plan. Some comprehensive plans also offers accident covers for riders even which is an added advantage.
Premium that you pay: Post your decision on the policy variants, the other most important factor that should be guiding your decision is the amount premium that you pay for the cover. The premium which a particular insurance company charge depends on factors like Insurance declared value or IDV of your two wheeler, cubic capacity of the vehicle and the age of the vehicle and finally the discounts which your insurance companies offer because of your driving habits and other factors taken into consideration. IDV is the most important factor of all, as per definition it is the maximum of claim which the insurance company would ever pay. With the age the IDV actually get reduced and correspondence to which the premium also. Geography is also important element governing the risk associated with your two wheeler. Insurance companies actually divide the country into two Zones –A and B as per the India motor tariff. If you drive you bike or scooter in a city which falls in Zone A you always end up paying more compared to Zone B.
Other than the factor enlisted above which decides the monetary value of the premium , there are different discounts which are offered by insurance companies which are subtracted to approach at the final amount of premium a policy holder would pay. In case if you not made any claims in the years preceding the current year then you are also offered a percentage of discount. Other than that if you have opted for co-pay options and taken some preliminary steps to keep you two wheeler in healthy condition then also the insurance company incentivizes you with a discount on your premium.
Claim processing: This is an important factor. The ease of handling claims always becomes a governing element. The insurer provider should be able to process your claims on time so that you have the money right on time. Policies come with cashless facilities in garages with whom they have tie up with to support the policy holders but the number of the same in your city can be a factor to consider. The claims are easily processed if you have clarity on the process. Claims are settled fast in cases of total loss or loss arising due to theft.
Policy renewal: This may not very important factor while deciding upon your two wheeler policy because most policies are a year contract and you need to renew it on a year on year basis. Some companies also provide for long term policy option also with a term of 2 to 3 years but the ease of doing renewal can be a factor.
A clear understanding above might have given you the required points which you need to consider while making the best decision but we always recommend you to use the helmets and follow the traffic rules while driving though if you are fully covered. Damages happening due reason which shows that you have not followed rules then the insurance companies also hold the right to decline your claim always.