One of the most common modes of transport in India for daily ride is a two-wheeler. Since driving through the traffic congestion amid a hectic schedule can be a risky affair, it becomes pertinent to have a two-wheeler insurance policy.
“The first thing to contemplate while purchasing your new bike’s insurance is whether to opt for a third-party liability insurance or to go for a comprehensive two-wheeler insurance,” said Animesh Das, Director – Motor Underwriting, ACKO Insurance.
Here are the five things that you should know when you buy a two-wheeler insurance policy.
1. Third-party liability insurance vs comprehensive insurance
It is important to compare various features and price of the policy before purchasing. Certain things to keep in mind are –
To Add-on or not to add-on
A basic comprehensive policy usually doesn’t address all the risks associated with owning and driving a two-wheeler; add-ons take care of that. Add-ons are separated from the core policy as every bike owner’s needs differ.
“Adding add-ons to your comprehensive policy will increase its coverage but will also increase its price/premium. Therefore, choose suitable Add-ons: Zero Depreciation, Pillion Rider Cover, and Roadside Assistance etc.,” Das.
The IDV Factor
Insured Declared Value (IDV) is the current market value of your two-wheeler: the value you will receive for your bike’s total loss or theft. As IDV has a direct impact on your insurance premium, it should be declared accurately.
IDV is a dynamic value, recalculated during your policy’s renewal based on the following formula.
IDV = (Listing price stated by manufacturer – Depreciation) + (Additional accessories – Depreciation)
Going for Voluntary Deductible
Types of deductibles: Compulsory and Voluntary.
Voluntary is deductible added on top of compulsory deductible. This means you agree to pay a voluntary amount during the claim settlement. Increasing the Voluntary deductible decreases the insurance premium but reduces the claim amount received because you pay less premium compared to not opting for Voluntary deductibles.
Choose an insurer who provides a satisfactory experience throughout your customer journey. Researching the insurer’s claim settlement ratio, user reviews and social media handles would help you understand the brand’s credibility.
“Bike policy renewal should be undertaken periodically. Generally, bike policies last a year. Never forget to renew your bike’s insurance policy or ride without a valid insurance policy,” said Das.
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