All bike owners are aware of that they need to buy an insurance policy. It is an additional legal requirement alongside registration and PUC. The Motor Vehicles Act makes it compulsory and thus, the compliance is mandatory. But apart from being regulatory requirement, a two wheeler insurance policy has its own benefits which include financial protection from damages.
The premium of your two wheeler insurance
policy is decided based on the coverage you choose. This amount of premium is arrived after considering the risks that the insurance company must undertake. Model and make of the bike, age, its insured declared value, engine capacity, policy features, location of registration are some factors that in tandem determine the bike insurance price. However, if you relocate, the premiums are affected since the risks changes thereby impacting the premiums. Here are some the reasons how relocating to a new place impacts the premiums -
Change of traffic situations
Traffic conditions in the place of your residence determine the various levels of risks faced you and your bike. A higher traffic, for instance in metro regions, implies a higher premium due to prevalent bumper-to-bumper traffic conditions. Hence, when you move to a different place, say for instance from a metro to a non-metro city, the bike insurance price
lowers as the traffic conditions ease.
Change of travel distances
When you relocate, there is an obvious change in the distance for your daily commute to work. This comes as places are often far away from work locations and its distance differs in different cities. For instance, your commute to work increases after moving to a new city, the premium of your policy might witness a spike due to the increased risk that the insurance company is required to undertake.
Depending on the locality you reside, the insurance premiums are based upon. This even takes into account the risk of theft for your bike. Similarly, relocating means reassessment of the risk for the insurer and depending on such assessment, the premium might get impacted. However, to compensate for such increased risks, you can choose to install safety devices certified by the automotive associations of India that are enhance the security of your bike. *All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply
Premiums are determined are regulated based on the classification of a region as metro or non-metro. This implies every city might have different rules pertaining to insurance premium rates. The insurance company ensures these regulations are complied and thus the premium can see a change when relocating between metro and non-metro regions.
These are some ways how relocating from one town/city to another can see an influence on the premium. However, to avoid any rise in the premium costs, you can make use of security modifications that helps to lower them. The own damage cover in a comprehensive policy might see this impact of a change since the premiums for third party bike insurance
are determined by the regulator, IRDAI. In addition to the above, policy features like the voluntary deductible or the no-claim bonus can be used to lower the additional burden of premium, if any. Please visit the official website of IRDAI for further details. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.