Registration and insurance are two things that you need to have even before you take the delivery of your brand-new bike. Auto dealers in India manage the registration bit, but you still need to decide upon the insurance cover. Most buyers tend to choose the first policy that comes their way. It can not only be risky, but also prove to be useless in some cases. Thus, you must spare some time, just like you did when selecting your bike, and only then make the choice of bike insurance cover.
Sometimes, these bike insurance covers, if not purchased carefully, can be heavy on your wallet. So, before you decide to lose some of the coverage for an increased risk of damages and accidents, here’s what you should know about two-wheeler plans.
The Motor Vehicles Act of 1988 lays down a mandatory requirement to have vehicle insurance for all vehicles that are registered in the country. Hence, you need to make a choice between a third-party cover or a comprehensive plan.
A third-party policy is that which provides coverage for legal liabilities that may arise due to an accident or collision Such events result in property damage to a third person and even injuries in some cases. Events like these attract legal liabilities and a third-party plan protects you from it. While the third-party policy offers no coverage for own damages, here’s when a comprehensive plan comes into the picture.
Comprehensive policies provide a broader coverage with room for customisation too. It not just includes damages to your bike, but also insures against other perils like natural disasters, theft and more. However, considering its increased scope, comprehensive plans are steeper when compared to third-party policies. Thus, between the two types of two wheeler insurance third party plans are a minimum requirement.
Here are some tips to help you save money when buying insurance plans:
- Compare and buy
Comparison is the key when it comes to buying bike insurance plans. It helps you about the myriad policies and then zero down based on which is right fit for you. You also have a clearer understanding of the features offers and at different price points.
- Renewal before expiry
Comprehensive two-wheeler plans have various renewal benefits, no-claim bonus being one of it. If you happen to delay the renewal of your plan after 90 days of the expiry, such no-claim bonus gets lapsed. Thus, to ensure carry forward of such renewal benefits, it is best to renew your policy before its expiry. * Standard T&C Apply
- Avoid claims for minor repairs
Sometime small claims can cause huge losses. When a claim for minor repair is made, you need to pay for the deductible of your policy and even forego any no-claim benefits in the future. Thus, if the cost of repair in lower in value, it results in a loss instead of benefiting you. Thus, a claim must be raised only after weighing the current out of pocket expense and the future cost of premiums.
- Opting for voluntary deductibles
Deductibles are that component which you need to pay from your pocket each time you make a claim for insurance. While the mandatory deductible is applicable for all plans, a voluntary deductible can be opted for to lower the burden of premium. Please visit the official website of IRDAI to view more details.
These are some tips that help to reduce the impact of premiums when you buy a comprehensive policy. Along with these tips, a two wheeler insurance premium calculator is a nifty tool that can help to stay in check. 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.