How to choose the best two-wheeler insurance policy?

Is Bike Insurance Important?

To answer simply, yes, bike insurance is quintessential for any two-wheeler vehicle. The number of two-wheeler road accidents in 2022 alone reported 4,61,312 accidents and claimed 1,68,491 deaths and injuries to over 4 lakh people. Such high figures are unsettling. To avoid road accidents, it is very important to refrain from rash driving and ensure proper gear. Additionally, having a bike insurance policy provides much-needed financial support in times of two-wheeler accidents and injuries.

Not only this, having two-wheeler insurance is also mandatory by law. Motor Vehicle Act, 1988 makes it mandatory for each motorised vehicle in India to have a minimum of third-party insurance. So, before you start driving out on the Indian roads, having active two-wheeler insurance is compulsory.

Types of Two-wheeler Insurance Policies

In India, general insurance companies broadly offer three types of two-wheeler insurance policies. You may choose any of these depending on your preferences and requirements. The three types of bike insurance policy are:

1. Comprehensive Bike Insurance
   Comprehensive bike insurance provides maximum coverage for your two-wheeler. It covers both own damages and third-party liability. The policy also allows you to purchase various add-ons to increase the coverage further. Anyone who wants comprehensive coverage, drives frequently or has a new two-wheeler may go with this plan.
2. Standalone Own Damage Bike Insurance
   The own damage bike insurance policy only covers the damages incurred by a vehicle. It does not cover third-party liability. So, it is ideal for vehicles that already have a third-party liability and are looking for damage coverage as well.
3. Third-party Liability Insurance
   Having a third-party liability cover is mandatory by law. It covers only third-party liability and not own damages.

Tips to Choose the Best Two-Wheeler Insurance Policy

When you plan for two-wheeler insurance, you may come across multiple options to choose from. So, how do you choose the best bike insurance among the available options? Well, that simply needs a thorough analysis of a few factors.

Here are some of the elements that you must analyse and assess before making a choice for a bike insurance policy:

1. Carefully Choose the Coverage You Want
   The first step is to decide the type of coverage you want. Depending on your requirements and preferences, you can easily filter a few from the list of options. For instance, for someone who uses their bike to commute on a regular basis, then comprehensive insurance should be preferred so that own damage and third-party liability, are both taken care of.
   
   However, if you rarely use your bike and only want to cover the legal requirements, a third-party liability policy may suffice. But remember that with only the TP cover, your bike damages will not be covered.
   Tip: If you already have a third party but now want coverage for your own vehicle as well, purchasing a standalone own damage policy can be suitable.
2. Keep an Eye on the Premium Payable
   The premium has to be paid by the bike owner in return for the coverage received. So, you must decide the premium that you are comfortable paying. Make sure to consider your ongoing financial commitments in consideration as well as to decide on a practical amount.
   Tip: Make use of the bike insurance calculator to get an idea of how much your bike insurance policy will cost you.
3. Get the Right Insured Declared Value
   The Insured Declared Value or IDV is the value that you receive if the insured vehicle gets stolen or sustains damages beyond repair. This is the amount with which your insurer compensates you.
   
   Remember: A higher IDV means a higher premium. A lower IDV may bring your premium down, but keep in mind that it also means a lower payout in case your car is stolen or is damaged beyond repair. So, choose IDV wisely at the time of purchasing the policy.
4. Cubic Space & Premium
   The cubic space of your vehicle directly impacts the premium of the bike insurance policy. A higher cubic space means a higher premium.
5. Choose Riders to Increase Coverage
   Riders or add-ons are the additional coverage that you may purchase along with an active bike insurance policy. However, it also increases the premium of the policy. The option of the rider is usually available with a comprehensive or standalone own-damage policy. You may check the options available with your chosen insurer.
   
   Remember: Riders can be added or dropped from the base policy at the time of policy renewal.
6. Check the Market Reputation of Insurer
   Once you have shortlisted a few companies, make sure to check their market reputation. It includes their claim settlement ratio, incurred claim ratio, the remarks of customers, IRDAI (Insurance Regulatory and Development Authority of India) rating, etc. These factors help you understand if the company can suffice your two-wheeler insurance needs.
   
   Jio Insurance Broking brings the best policies from some of the best general insurance companies in India.
7. Compare Multiple Policies
   One of the best ways to shortlist options is to compare them. You may see various insurer and policy options at Jio Insurance Broking. You may simply compare these plans based on their coverages and premiums and choose the most suitable one.
   Remember: Once you have decided on a policy, do not skip reading the fine print for more clarity.