Having a bike is more of a necessity rather than a luxury today. With cities growing by each passing day, relying solely on public transport might not do well. In such a situation, a bike can be extremely useful.
Not only the convenience it has on offer, but also the savings in time. You can easily manoeuvre through the traffic without worrying much. Further, no road ever is too small for a bike whether it is an urban highway or through rural roads. But as we protect all precious items, having an insurance cover is essential for your bike. The Motor Vehicles Act of 1988 makes it mandatory to have a bike insurance policy
. It helps in providing a financial cover for any damages or repairs or third-party liabilities.
Two-wheeler bike insurance renewal - Explained
The benefits of having bike insurance are elucidated by many. But you need to renew the policy time and again. The frequency of two-wheeler bike insurance renewal is pre-decided at purchase date. However, there are times when you might miss on renewing your policy. It can have the effect of losing coverage as well as a loss of other accrued policy benefits like the no-claim bonus. Being s important s it is, you should know everything related to bike insurance renewal. Let us look at seven such factors to consider at the time of two-wheeler bike insurance renewal.
#1 Deciding the coverage before the expiry
When it comes to bike insurance, it is advisable you do not wait for the eleventh hour. If you wish to upgrade the cover or change your insurer, decide well in advance. This will give you the necessary time to research and look for suitable bike insurance plans.
#2 No Claim Bonus (NCB)
No-claim bonus is the benefit that your insurer provides when you do not make any claims during the previous year. The benefit is in the form of concession in own-damage premium at the time of two wheeler bike insurance renewal
online or offline. No claim benefits start at 20% and go up to 50% for every consecutive claim-free policy year.
#3 Reassess the insurance cover
At every renewal date, it is necessary to reassess the insurance requirements. You can opt for increased coverage or make necessary amendments like opting for additional covers. This will help you understand what works for you and accordingly amend your coverage for the future insurance period.
#4 Ensure correct information
During a two-wheeler bike insurance renewal, online or offline process, you notice some discrepancy in the information provided from what the policy states, make sure to get it corrected. Insurance companies generally issue endorsement that is supplementary to the policy document.
#5 Set an appropriate IDV
At each renewal date, you can amend your bike insurance plan as per requirement. Here, you can increase or decrease the insured declared value or IDV of your policy which shall be paid in the event of a total loss of your bike. Understanding what is IDV in insurance
is essential as a lower IDV will be underinsuring your bike while a higher IDV will increase the premium amount.
#6 Opt for add-on covers
When renewing your bike insurance plan, take into consideration the add-ons offered by your insurance company. Add-ons are a nifty way to enhance the coverage for a nominal increase in premium. Some popular add-ons to purchase are zero depreciation cover, 24X7 roadside assistance cover, NCB protection cover and more.
#7 Grace period
Although not advisable, in case you miss renewing your policy in time, take advantage of the grace period. Insurance companies have different duration of grace periods. A thorough reading of the policy document will help you learn more about the grace period offered by your insurance company.
Take a note of the above factors and make the most of it at two-wheeler bike insurance renewal. Do not miss on your renewal date as it might hamper the continuity of your policy and its related benefits.