The Motor Vehicles Act, 1988 introduced two-wheeler insurance in India. This insurance segment is regulated by the Insurance and Regulatory Development Authority of India (IRDAI). Two-wheeler insurance protects your bike against damage, loss, theft, and covers any damages caused to a third party by the insured vehicle. It also provides owner-driver insurance that pays reimbursement in case of severe injury or death of the owner.
Bike insurance in India is of two types based on the nature and extent of coverage provided by it.
- Comprehensive two-wheeler Insurance – insures the vehicle, the owner-driver and covers damages to third parties.
- Third-party two wheeler insurance – only covers the damages caused to a third party.
A recent directive from the Supreme Court of India has made it mandatory to own a 5-year policy for all two-wheelers brought after 01/09/2018. The policy has to be bought at the time of purchase of the vehicle and failure to do so can attract heavy penalties.
FACTORS THAT SHOULD BE COMPARED IN TWO-WHEELER POLICY
- COVERAGE – The essential factor to consider is the type of coverage you require for your bike. You can either select the basic third-party cover or a comprehensive all-inclusive cover, but pay attention to the list of features and coverage provided under the respective policy by the insurance provider.
Although third-party is primary coverage, companies like Royal Sundaram Insurance provide a “Personal Accident Cover” of up to Rs. 15 lakhs with their third-party insurance policy.
- INSURED DECLARED VALUE (I.D.V.) – It is the maximum sum assured provided by the insurance company on your vehicle. This depends on the age of the vehicle and remains constant for the term of the policy. It is like the current market value of your vehicle as calculated by the insurance company. Choose a policy with higher I.D.V.
- PREMIUM – Choose a two-wheeler insurance policy that provides the maximum benefits in the minimum premium amount.
- ADD-ONS – Compare the type of add-ons provided by the company in addition to the base policy. Companies provide add-ons like pillion rider cover, personal accident cover, zero depreciation cover at additional rates. Find the policy with the best add-ons that help you customize the policy to your specific need.
- CLAIM SETTLEMENT – This is the most dreaded part of any insurance policy. Ensure that your insurance company has a well laid-down, seamless and swift claim settlement procedure.
- SETTLEMENT RATIO – It is always wise to verify and compare the claim settlement ratio of an insurance company before buying their insurance policies.
- CASHLESS GARAGE NETWORK – Compare the number of cashless garage networks the insurance company has all over the country. Having a higher density of linked garages ensures that the insurance company can provide you a swift and seamless assistance for repairs and accidents.
HOW TO COMPARE BIKE INSURANCE POLICY?
Find a website that curates bike insurance policies and helps you to compare their premium amounts, features, add-ons and other insurance deliverables. Many web portals, financial magazines, and business newspapers provide analysis and reviews of different insurance products. You can refer such articles to gain knowledge of the various insurance providers and their insurance products and find the one that suits you the best.
A two-wheeler or bike insurance calculator helps you to calculate the insurance amount and the premium so that you can compare multiple service providers and choose the one best for you.
Select an online premium calculator. Enter the data as prompted by the screen. You usually require your registration number, make and model of the bike, etc.
Enter the details of your previous policy, if any.
Select your add-ons and then submit the data. The calculator will display the premium amount based on the data provided by you.
BENEFITS OF COMPARING BIKE INSURANCE ONLINE
Bike insurance policies can be purchased or renewed online through the official website of the insurance provider or other third-party websites that provide the services.
- It makes buying an insurance policy a seamless and hassle-free experience.
- You have the resources and data to make an informed decision and prevent impulsive buying of insurance policies.
- You get a comprehensive knowledge of all the insurance products available in the market and the different features and advantages available to you.
- It eliminates the middlemen and agents, thus saving you from commission charges and possibilities of fraud and human error.
- You understand the multiple factors that affect the premium amount of two-wheeler insurance.
- As you have read and chosen the policy after proper research, you know the fine print, features, and procedures of your policy which makes it easier during renewal and claim procedures.
- You get to select a host of add-on features suitable for you, thus creating a two-wheeler policy that is customized for your needs.