When you use your hard-earned money to buy something majorly important in your life, you would want it to be safeguarded from any harm coming its way. For example, a house is an expensive purchase. So you may want your house to be protected from unwanted perils. Similarly, a two-wheeler may be an important part of your daily life. When you buy a two-wheeler, it may be important to purchase two-wheeler insurance
with it. However, how do you purchase a policy that provides all-round protection for your vehicle?
Let’s look at the factors that might help you in selecting a suitable policy.
How to Choose the Correct Policy?
As a first-time two-wheeler owner, it is natural to not be well-versed with the dos and don’ts related to buying two-wheeler insurance. To make it easier for you to understand, here are some factors that come into play when looking for the right policy for your two-wheeler:
Claim Settlement Ratio
A bike insurance policy offers compensation for own damages and third-party damages. This compensation is given by the insurer after you file a claim, and the claim gets settled. Claim settlement ratio signifies the number of claims successfully settled by the insured against the number of claims filed in a year. For example, if 1000 claims were filed and insurer A processed and settled 850 of those claims, that’s a settlement ratio of 85%. If insurer B processed only 600 claims, that’s a ratio of 60%. Higher the settlement ratio, higher the chances of your claim being settled. Study the settlement ratio of the insurer before selecting one.
Two options are available for purchasing bike insurance: third-party and comprehensive. You may get the option of own-damage bike insurance as well. Third-party bike insurance offers financial coverage for third-party damages, whereas comprehensive two-wheeler insurance coverage extends to own-damages apart from third-party damages. In addition, you can include riders in your policy to enhance its coverage. It is important to note that the addition of riders in the policy increases it cost. The own-damage policy provides coverage for own-damages only and does not cover third-party damages. Understand your coverage needs before you select the policy type.
Insurers have agreements with various garages. These garages are known as network garages. Essentially, you get to avail cashless claim facility at a network garage, thus not requiring you to pay out pocket. Insurers have network garages across India, ensuring that you are provided with prompt assistance in the event your vehicle stops functioning. Look at the number of network garages offered by your insurer before you opt for one.
Cost of the Policy
The two-wheeler insurance coverage is a determining factor of your policy’s cost. The coverage of the policy is dependent on the type of policy you purchase. Since the insurance regulatory authority sets the price of third-party insurance, the cost is low and affordable for everyone. On the other hand, comprehensive policy costs more due to the coverage offered under it. It covers both third-party and own damages. Additionally, the riders which offer an enhanced coverage may also increase the cost of the policy. If you opt for comprehensive insurance, make sure you select the add-ons which are required to keep the cost of your policy within your budget.
Method of Purchase
When it comes purchasing bike insurance, you have two options: Online and Offline. But which one is better? With online purchase, you have the advantage of convenience. You can purchase your policy from your home or office, at day or night, and you can use your computer or mobile to purchase. There are no hidden or extra charges with online purchase. You also get to customise your policy as per your preference. In offline purchase, insurance agents may charge you commission, which increases the cost of your policy. However, you get personalised service when you go through an agent.
*Standard T&C apply
Additional Tips for You As a Buyer
- Compare insurers online to get a sense of what they are offering individually.
- Read reviews from actual policyholders to get an understanding of their personal experience.
- Get in touch with a broker or agent to understand the basic terms of the policy and avoid confusion.
- Customise your policy as per your requirements, but do not include features you might not utilise often.
- If the insurer is offering multi-year policy, opt for it if the cost fits your budget.
The Bottom Line
With these tips, you may find it easy to purchase a suitable policy which offers all-round coverage for your newly purchased bike. You may take the assistance of a two-wheeler insurance premium calculator
to get a quote for the policy you are looking to purchase.
*Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.