As per the motor vehicle act of India, every two-wheeler needs to have insurance coverage. Hence one who owns two-wheeler needs to go for it every year. With the increase in companies offering two-wheeler insurance in the market and various rules by the regulatory authorities, this task of buying two-wheeler insurance has been a little tricky. One needs to know the requirements in depth and compare multiple policies keeping the requirements in mind.
A bike owner can go for comprehensive cover or third party cover. Though it depends on the buyer which type of coverage he wants to go for, there are different points that one needs to check before choosing any of these options.
The options available are:
- Comprehensive cover: In this cover, one can find complete coverage for a two-wheeler, whether it is from an accident or any natural calamity. This plan also covers the rider, pillion and third party from any damage. It also has personal accident coverage for the rider. Hence one can term this plan as a complete one as far as the protection for the vehicle and rider as well as the third party is concerned.
- Third-party cover: In this plan, one can have protection from the third party damage only. It means if this plan is purchased and there is any accident where any individual or property is damaged, one can have a claim under this plan. However, this plan does not protect the vehicle against various hazards such as burglary, theft, damage due to natural calamities and total loss due to accident or in any other case. Hence this plan has limited coverage, and the risk of the vehicle remains with the owner only.
The coverage: While going for insurance for a bike, one needs to check the coverage first. The extended coverage may be costly compared to the limited one, and both of them are discussed above. The coverage depends on the choice of the buyer. For a buyer, it is necessary to have the best coverage for the vehicle to offer complete security to the same. In many cases, the client is not aware and just looks at the premium to be paid. The agents knowingly provide only third party insurance so that one does not have to pay much amount as premium, but it troubles the client when there is damage to the vehicle, or it is lost or destroyed.
Some important factors to compare
While going for the insurance policy one needs to check a few of the critical factors which are discussed below:
IDV: This is the most crucial element for any insurance policy. This is the amount which one can have at the time of total loss of the vehicle. This amount keeps on reducing over a period. The simple rule here is with the increased in IDV the amount of premium increases. For this reason, in many cases, people keep it restricted, but the moment vehicle is lost or destroyed the client does not get a good amount which troubles him in getting new vehicle also. The moderate IDV is what one should go for.
Change of owner and vehicle: One must know the stand of an insurance company the moment he sells the vehicle or owner of the vehicle is changed due to any reason. Usually one can retain the No claim Bonus even after he has sold the vehicle to anyone and carry it forward to his vehicle also.
Type of claim: This is another important element for any buyer to focus on while going for a Bike Insurance Plan. One needs to know the stand of a company in case of a claim, as many companies offer the claim in the form of reimbursement only. It means if the vehicle meets with an accident, one has to pay the cost from his pocket first; and then company will pay back to the policyholder. However, if possible one should go for the cashless claim only, as in that case, he does not have to pay much from his pocket. One needs to compare this feature with different companies in the market while planning to buy a policy.
Premium: As a part of the contract of Insurance, the premium is the prime element that affects the policy. In case of higher sum assured the premium amount goes up while with limited sum assured the amount may be limited only. One can compare the premium with different companies only if he has checked for the policies of different companies with the same features.
Customer service: This is another essential aspect that one needs to check before going for a policy with any company. The buyer needs to check if the concerned company will provide necessary support in case there is a claim or not. For this, one needs to check with various people who may have previously got a claim from the concerned company.