Riding your brand-new bike is bliss, the thrill associated with it is unparalleled. But with a bike comes the responsibility to ride safe. Wearing a helmet, following traffic rules, and being alert are basic precautionary measures that need to be followed. Similarly, insuring your bike is a way to secure yourself against financial losses. It is also a mandatory requirement. Read ahead to know crucial details that you should be aware of while planning to buy new two-wheeler insurance.
- Third-party Liability Insurance Vs Comprehensive Insurance
- To Add-on or not to Add-on?
- The IDV Factor
- Going for Voluntary Deductible
- Getting Insured
- Checklist for having New Bike Insurance
- Gauge your needs
- Type of new bike insurance policy
- Select an insurer
- Your details
- The amount of IDV
Third-party Liability Insurance Vs Comprehensive Insurance
The first thing to contemplate while purchasing your new bike’s insurance is whether to opt for a Third-party Liability Insurance or to go for a Comprehensive Two-wheeler Insurance. A Third-party Liability insurance policy is mandatory as per law. It is a policy that is designed to safeguard the financial interests of various third parties. Damage to a third party or their property is covered under this policy. Its price is standardized by the Insurance Regulatory And Development Authority Of India (IRDAI).
On the other hand, a Comprehensive Two-wheeler Insurance policy is designed for the bike rider and the bike. It covers Third-party Liability Insurance, Own Damage, as well as major risks such as theft, accidents, calamities, etc. The premium charged for this policy varies from insurer to insurer. Thus, it is important to compare various features and price of the policy before purchasing. You can also go for Add-ons to add that extra layer of security.
To Add-on or not to Add-on?
Add-ons are not compulsory and they can only be packaged with a Comprehensive policy. A basic Comprehensive policy has certain exceptions, things that are not covered. Add-ons are designed to cover those exceptions. Also, not everyone might be inclined to avail the features offered by the Add-ons and pay money for it. Thus, these Add-ons are separated from the core policy and offered as an option.
Adding Add-ons to your Comprehensive policy will increase its coverage but will also increase its price, i.e. the premium charged. Therefore, one must only go for suitable Add-ons. Zero Depreciation, Pillion Rider Cover, and Roadside Assistance are some of the popular Add-ons.
The IDV Factor
Insured Declared Value (IDV) is the current market value of your two-wheeler. It is the value you will receive in case your bike undergoes total loss or is stolen. It is important to declare the correct IDV as it has a direct impact on your insurance premium.
IDV is a dynamic value. Thus, it is calculated again while renewing your insurance policy. It is calculated based on the following formula.
IDV = (Listing price stated by manufacturer – Depreciation) + (Additional accessories – Depreciation)
Going for Voluntary Deductible
There are two types of deductibles, Compulsory and Voluntary. Voluntary deductible is over and above the Compulsory deductible. What it means is that you will be contributing a voluntary amount during the claim settlement. Increasing your Voluntary deductible decreases your insurance premium but it also reduces the claim amount received, as you pay less premium compared to not going for Voluntary deductibles.
Nowadays, it is extremely easy to purchase Two-wheeler Insurance online. You can insure your two-wheeler within minutes. Make sure to choose an insurer who offers a convenient insurance experience, both before and after the purchase. Checking the insurer’s Claim Settlement Ratio and going through user reviews and social media handles is a good way to know about the brand’s credibility.
After purchasing the policy, bike policy renewal is a process that needs to be undertaken periodically. Generally, bike policies last a year. Do not forget to renew your bike’s insurance policy and never ride without a valid insurance policy.
Checklist for having New Bike Insurance
Keep the following checklist handy while buying a new bike insurance policy for your two-wheeler:
Gauge your needs
Before you buy a new bike insurance policy, you need to understand your requirements. This will help you get bike insurance online that fits your budget.
Type of new bike insurance policy
Based on the requirements, you need to buy a plan that is the most fruitful for you. Buying a third-party car insurance policy is mandatory by law, however, it is not preferred by many as it offers limited coverage. Opting for a comprehensive plan instead will help you get your bike covered with insurance.
Select an insurer
You need to get your new bike insurance policy from a reliable insurance company. You can choose an insurer based on their services, reputation, claim settlement ratio, etc. A quick way of searching for an insurance company is by taking a look at the social media profiles and going through customer reviews.
The process of buying a new car insurance policy will be speedy if you are ready with a few details. While these details include your personal information like name, address, etc. it also includes details related to your bike. For example, the manufacturing year of your bike, its make, and model, the registration number, etc.
The amount of IDV
IDV stands for Insured Declared Value. It is the approximate current market value of your bike. Your insurance company will use this amount as a reference in case your bike is deemed under total loss. Total loss occurs when the bike gets stolen or when it gets damaged beyond repair.
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