Dos and Don’ts before buying a Bike Insurance policy

Understanding Bike Insurance Policy

First things first, begin with understanding the type of the policy. In India, there are three major types of bike insurance:

1. Third-party liability insurance covers damages or injuries caused to a third party. It is mandatory by law but does not cover damage to your bike.
2. Comprehensive insurance offers wider protection by covering both third-party liabilities and damages to your bike. This includes theft and natural and man-made disasters. You can also purchase add-ons at an extra cost.
3. A standalone, own-damage bike insurance policy covers damages to your bike due to accidents, theft, fire, natural disasters, and other external factors. This policy is ideal if you already have mandatory third-party coverage but want additional protection for your vehicle.

Do’s Before Buying a Bike Insurance Policy:

Here are some essential things worth considering before you buy a two wheeler insurance:

1. Assess Your Coverage Needs
   How often and where you ride matters. If you use your bike only for short, occasional trips, a basic plan may suffice. However, if you rely on it daily or for long distances, a comprehensive plan with necessary add-ons is a wiser choice.
2. Check IDV & Premium
   As bikes depreciate, their IDV (Insured declared value) decreases, which further affects premiums. If your bike is older, you might consider reducing extra bike insurance add-ons. This is because they may not justify the extra premium.
3. Compare Policies
   Policy costs and benefits vary significantly between insurers. Compare the premiums, coverage, claim settlement ratios, and user reviews. You can also check if an insurer is providing discounts or offers. It can help lower your premium without compromising coverage.
4. Check the Insurer’s Claim Settlement Ratio
   The claim settlement ratio (CSR) shows the percentage of claims an insurer settles via-a-vis the total received. A high CSR (preferably above 85%) indicates a reliable claim process. This also means there is a higher likelihood of receiving a payout when you need it.

Tip: When checking a bike insurance company, make sure you know its ICR as well. ICR, or the Incurred Claims Ratio, measures the proportion of claims an insurer has paid out relative to the total premiums it collected over a given timeframe.

Check bike insurance add-ons:

Some popular add-ons include:

• Zero Depreciation Cover: This guarantees the full claim amount without deducting for bike depreciation.
• Engine Protection Cover: This is ideal for flood-prone areas. It covers engine damage.
• Roadside Assistance: This add-on offers immediate help for breakdowns, towing, or other issues.

Note: While bike insurance add-ons add an extra cost to your premium, they offer unmatched value. Their importance becomes clear once you face such challenges or risks.

Opt for a Higher Deductible to Lower Premiums

Deductibles are the amount you pay before the insurer steps in. Choosing a higher deductible reduces your premium. However, make sure it is affordable in case you need to file a claim.

Don’ts Before Buying a Bike Insurance Policy

Here are some strict don’ts before buy a two wheeler insurance:

1. Don’t Ignore the Fine Print
   Every policy term outlines the inclusions, exclusions, and claim process details. Ignoring these can lead to unpleasant surprises and disputes while filing for a claim. Hence, make sure you pay attention to these exclusions thoroughly.
2. Don’t Compromise on Coverage
   Purchasing the cheapest policy straightaway means minimal coverage and limited support in case of an accident. Always prioritise value over price. Sometimes, a slightly higher premium with essential bike insurance add-ons and reliable service is worth the peace of mind.
3. Don’t Overlook Customer Service Quality
   Good customer service is non-negotiable when filing a claim. You wouldn’t want unnecessary delays, challenges, or disputes when you need the funds as soon as possible. Hence, check for online reviews and ask the existing policyholders about their experience. A reliable insurer with a good reputation will not be afraid to keep their communication transparent.
4. Don’t Delay in Policy Renewal
   This is quite simple. An expired policy leaves you without coverage straightaway. Renewing late can also reset your accumulated NCB, leading to higher premiums. Although many insurers send reminders, it is wise to mark your renewal date. This avoids lapses and potential penalties on your end.
5. Don’t Ignore the Role of NCB Transfer
   NCB is a discount offered if no claims are filed during a policy period. Even if you switch insurers, you can transfer your NCB to reduce your new premium.
6. Don’t Avoid Two Wheeler Insurance Online Policies Due to Mistrust
   While many prefer buying policies offline, online policies are often more feasible. The entire process of buying a bike insurance policy becomes very fine and seamless when done online.
   Some insurers also offer additional discounts for online purchases. Moreover, you can easily compare, renew, and manage different policies to choose the right one. This makes the entire process way more convenient.

Wrapping Up

Buying a two wheeler insurance policy is not just about fulfilling a legal requirement but about making sure you have the right protection on the road. By following these dos and don’ts, you will be better equipped to choose a policy that meets your specific needs, protects your finances, and offers the peace of mind you deserve.

Additionally, with Jio Insurance broking, you have the convenience of comparing various policies to find the one that best fits your needs and budget. Yet again, make sure you reassess your insurance requirements regularly. As your bike ages or your circumstances change, it is important to ensure it aligns with your current needs. For example, you may want to remove certain bike insurance add-ons, update your coverage, or adjust the IDV as the bike depreciates.

FAQs