Last Updated on March 24, 2020 by Gopal Gidwani
We can see how the number of vehicles on the roads is rising every day. This has led to an increased number of road accidents, which means that the need to protect your vehicle is more than ever now. No matter how confident you are about your driving skills, accidents cannot be predicted and the repairs sustained in such an event would require a substantial amount of money from your pocket. However, you don’t have to do that anymore as there are bike insurance plans that offer you complete financial protection.
Types of policies
While purchasing or renewing a two-wheeler insurance policy, you can either choose a third-party policy or a comprehensive one as per your needs.
1) Third-party liability
This policy covers the damages caused to a third-party’s property or person. As per the Motor Vehicles Act, 1988, it is mandatory to purchase third party insurance for bike. Recently, the Supreme Court has declared it compulsory to purchase a five-year third-party liability policy when you purchase a new bike.
2) Comprehensive policy
Unlike the third-party policy, a comprehensive plan allows you to claim for own damages along with third-party liability. It also provides coverage against man-made and natural calamities such as theft, floods, vandalism, cyclones, earthquakes, etc. In the case of theft, you will receive compensation as per the insured declared value (IDV) of your vehicle. It is in your hands to customize the plan as per your requirements by selecting add-on covers.
Benefits of buying a bike insurance policy
1) Financial security
In case any damages are caused to your vehicle due to man-made events or even natural calamities, the insurance company will provide you with coverage; accident and theft are covered as well. You must stay insured all the time because you never know when you will require the coverage and the added financial security.
2) Coverage for own damage
The regular third-party policy won’t cover the damages caused to your vehicle. You will have to purchase a comprehensive policy to avail coverage for repairing your vehicle. If the regular cover is not sufficient, you can always enhance it with add-on covers such as Zero Depreciation, Consumables Expense, 24×7 Roadside Assistance, etc.
3) Obeying the law
Carrying your insurance papers is just as important as wearing a helmet or carrying your license while riding a bike. If you’re caught without a bike insurance policy or an invalid or lapsed one, you will be getting on the wrong side of the law and attract heavy penalties or even jail time.
4) Coverage against third-party liabilities
Any damages caused to the third-party must be compensated by you. If you don’t have an insurance plan, you would have to pay for the damages yourself. Some people might not be able to afford such an expense if it comes up suddenly. A third-party insurance plan covers all of this. But before you file an insurance claim, you need to be aware of the process. You can now refer to it online on the insurance provider’s website.
5) No-Claim Bonus (NCB)
Mostly people avoid buying an insurance policy for their bike because they think that it involves paying a lot of money in premiums. However, you don’t necessarily have to pay the full premium amount every time you renew your policy. If you do not make any claims during the term period, you’re eligible for a concession on your premium amount in the form of No-Claim Bonus (NCB). The maximum concession you will receive will be up to 50%.
To make sure you receive all the benefits from your bike insurance policy, compare multiple policies online and check which insurance company provides you with better deals. There is an online tool, namely a two wheeler insurance premium calculator, which you can use to get quotes in a few clicks.