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22 Sept 2021
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Buying Bike Insurance

Heavy traffic, lack of parking space and increased petrol prices have increased the sale of two-wheeler vehicles in most cities. Apart from the daily commute, two-wheelers are also the most preferred mode of transportation due to their highly efficient fuel consumption and manoeuvrability. With this, a proper bike insurance plan has also become the need of the hour.

Having a bike insurance plan in place protects you financially against a variety of expenses that you may have to bear in the event of a two-wheeler accident. According to the Motor Vehicles Act, 1988, it is mandatory for two-wheeler owners to purchase at least third-party liability bike insurance. On the other hand, comprehensive bike insurance also covers your two-wheeler in the event of a theft, fire, malicious act, natural disaster, etc.

Although there are several benefits associated with two-wheeler insurance, most people buying one for the first time may end up making mistakes as they are not familiar with the insurance process. In this article, we’ll take a look at some common mistakes that people make when buying bike or two-wheeler insurance for the first time.

Bike Insurance Mistakes You Should Avoid

  • Buying Insurance From Bike Dealership

Most customers are tempted to buy a bike or two-wheeler insurance from the bike dealership because it’s easy and convenient. However, insurance plans at dealerships can be expensive as the insurance commission for the dealership is included in the cost of the policy. To avail maximum benefits of two-wheeler insurance at lower premium rates, you must make a comparative study of various insurance policies available online and choose one that fits your budget while providing the best facilities.

  • Looking for a cheaper policy

Choosing a cheaper plan for reduced premium rates is one of the most common bike insurance mistakes.

Though it is always advisable to look for affordable bike insurance, you should not make it your primary concern and the only deciding factor. Many times, cheaper policies do not offer adequate coverage for your two-wheeler. Compromising the coverage and benefits for a cheaper two-wheeler policy might end up affecting you adversely in the long run.

  • Opting for Short Policy Tenor

Long term two-wheeler policies are more beneficial than short term policies. Choosing a long term policy over a short term policy will help you save on the premium amount as it remains locked for the duration of the policy period. The insurance company may also provide additional riders at reduced costs and other discounts when buying a long term policy.

  • Not claiming the No Claim Bonus

Bike insurance providers offer a no-claim bonus to policyholders who don’t make any claims during a given policy term. This no-claim bonus can play a significant role in reducing your premium payable for the following policy year. Ensure to make use of the no claim bonus while renewing your insurance policy. Even if you are changing your insurance provider at the time of renewal, you can get an NCB certificate from your existing insurance company that will help reduce the cost of premiums.

  • Not Reading the Terms and Conditions

Before purchasing a two-wheeler policy, it is important to read its terms and conditions carefully. Make sure you read every detail of the policy. Do not forget to go through the exclusion list of the policy. You need to check that all the features you have been promised are part of the policy and there are no loopholes.

  • Selecting Lower IDV

IDV refers to the Insured Declared Value of your vehicle, which is the maximum amount of money that the insurance company will be liable to pay in case of damage or theft of the two-wheeler. A higher IDV translates to higher premium rates, hence, many people choose to lower their vehicle’s IDV. While this can make your premiums cheaper, the payout you will receive may end up being less than the value of your bike in case of an accident or theft.

  • Selecting Only Third-Party Insurance

Bike and two-wheeler owners need to mandatorily have third-party insurance. However, most people tend to skip buying comprehensive two-wheeler insurance as it is more expensive than third party insurance. However, in case of an accident where your vehicle has been damaged significantly, third-party insurance will not cover any damages. Only comprehensive two-wheeler insurance will give you the added benefit of providing coverage for your vehicle.

  • Forgetting to Renew the Policy

Many bike and two-wheeler owners simply forget to renew their insurance policy post expiration. Driving without a valid and active insurance policy is illegal and you may be fined by the traffic police if caught. Most importantly, if you meet with an accident, you may have to end up paying for third-party expenses out of your pocket, which can be a heavy financial burden.

  • Not Taking Advantage of Additional Riders

Insurance companies also provide the option for customers to get additional riders such as bike theft cover, zero depreciation cover, etc. These additional riders can be bought on top of your insurance to provide cover against unexpected expenses or damages at low costs. Most people tend to skip riders. However, it is a good idea to look at the available options and pick any rider that you may need going forward.

  • Providing Incorrect Information

At the time of buying your bike or two-wheeler insurance, you need to make sure that all the details you have submitted to the insurance company are accurate. Even small mistakes in important documents can lead to your insurance claim getting rejected. A good practice is to double-check all the information before submitting it to the insurance company.

Final Takeaway

You should keep all the above points in mind at the time of buying a bike or two-wheeler insurance to get full advantage of your insurance policy and avoid claim rejections due to minor reasons. If you are looking to buy third-party or comprehensive bike insurance, you should take a look at the various bike insurance plans available at Finserv MARKETS and choose a plan that suits your needs. With insurance plans from Finserv MARKETS, you can benefit from features like 24x7 bike roadside assistance, wide coverage and a streamlined claim process. Heavy traffic, lack of parking space and increased petrol prices have increased the sale of two-wheeler vehicles in most cities. Apart from the daily commute, two-wheelers are also the most preferred mode of transportation due to their highly efficient fuel consumption and manoeuvrability. With this, a proper bike insurance plan has also become the need of the hour.

Having a bike insurance plan in place protects you financially against a variety of expenses that you may have to bear in the event of a two-wheeler accident. According to the Motor Vehicles Act, 1988, it is mandatory for two-wheeler owners to purchase at least third-party liability bike insurance. On the other hand, comprehensive bike insurance also covers your two-wheeler in the event of a theft, fire, malicious act, natural disaster, etc.

Although there are several benefits associated with two-wheeler insurance, most people buying one for the first time may end up making mistakes as they are not familiar with the insurance process. In this article, we’ll take a look at some common mistakes that people make when buying bike or two-wheeler insurance for the first time.

FAQs on Mistakes to Avoid While Buying Bike Insurance

  • ✔️How do I correct mistakes on my bike insurance?

     

    If there are any mistakes on your insurance policy document, you should immediately contact your insurance provider and get them to rectify those.

     

     

  • ✔️Can I drive my bike without insurance?

    No, you cannot drive your bike without insurance as it is illegal as per the Motor Vehicles Act, 1988. You may face hefty fines and other punishments if caught driving without insurance by the authorities.

     

  • ✔️Can I upgrade my bike insurance policy?

    Yes, you can upgrade your bike insurance policy. One way to do so is to choose a better insurance plan for your bike at the time of policy renewal. 

  • ✔️Can I claim bike insurance without an FIR?

    In case of a traffic accident, you will need an FIR to file for an insurance claim. Your claim will not be registered or may get rejected if you don’t submit a copy of the FIR. 

  • ✔️Is third-party insurance enough for bikes?

    No, third-party insurance will only cover expenses to the third party. Any damages caused to your vehicle will not be covered. Comprehensive bike insurance is recommended for enhanced protection.