Buying a bike in India is not only convenient but also preferred by many. The savings in time in your commute it offers as compared to other modes is unfathomable. This makes buying two-wheelers are a popular choice. To protect this bike, it is important to have a safety net of any kind. This need for protection and safety makes it important to have a two-wheeler insurance plan.
This requirement makes it necessary for you to select a suitable insurance cover among the myriad plans available. Thus, having a robust insurance cover can come handy. Whether you are a newbie at it or have done it before, these smart tips will definitely help you shortlist a two wheeler insurance policy. Continue reading to know more.
Selecting the right type of insurance cover
Bike insurance policies are classified into third-party and comprehensive plans. Various plans are available under each of these categories and it is for you to decide the insurance coverage you want.
As per the law, third party insurance for bike is the minimum coverage that you need to have. It offers coverage against any liabilities to the policyholder whether it is in the form of damages to property or injury to a third-person. On the other hand, a comprehensive policy also offers own-damage cover along with third-party liabilities. When purchasing an insurance plan, you need to assess your requirements to get a policy that suits your needs.
Selecting the right add-ons
Bike insurance plans can be loaded with optional features that significantly enhance your policy coverage. These add-ons that are optional directly impact the premiums of your policy. A two wheeler insurance premium calculator can help you determine its impact on your premium. Thus, selecting more number of add-ons will increase your premium. So, when selecting add-ons, ensure they can help you cover for the losses and not be a mere expense.
Understanding the IDV
Insured Declared Value or IDV is that amount which is paid by the insurer in the event of total loss or damages to your bike. The IDV is determined by the insurer based on the purchase price and the additional fittings to your bike. A comprehensive bike insurance plan enables you, the policyholder, to increase or decrease the IDV within a particular range. This increase/decrease has a direct impact on your premiums.
Be mindful about the claim settlement ratio
The claim settlement ratio or CSR of the insurer is another crucial factor to look at when buying an insurance cover. It denotes the number of claims settled against the total number of claims received by the insurance company. A reputed insurance company will generally have higher CSR. Moreover, the regulator publishes the CSR for all insurance companies annually and is easily available for viewing. Thus, before you finalise your insurance company, make sure to check its CSR to avoid any chances of claim rejection.
These nifty tips make buying bike insurance plans a breeze. Make sure to thoroughly analyse your requirements and then purchase an insurance cover keeping in mind the above-mentioned points.