Two-wheeler insurance means a policy to cover the loss or damages caused to a vehicle due to some event such as theft, natural disaster or road accidents. It also provides coverage against third-party liabilities. As per IRDAI guidelines, while buying a two-wheeler, it is compulsory to obtain a third-party insurance cover. The financial implications of any unplanned event can cause a dent to your earned savings without insurance coverage. Hence, it is recommended to purchase a motorcycle insurance policy and renew it at the end of the policy tenure.
A motorcycle insurance policy offers protection against losses that you may face in case of an accident, theft of the vehicle etc. Policyholders can purchase either a comprehensivemotorcycle insurance policy or a third-party liability insurance policy.
Any authorised insurance company registered under the Insurance Regulatory and Development Authority of India (IRDAI) has the allowance to issue a two-wheeler insurance policy. Automobile dealers can also sell motorcycle insurancepolicies.
Generally, there are two types of two-wheeler Insurance policies:
◇ Third-party liability- It covers legal liability for the damage caused to a third-party only including injuries, death and damage to third-party property while using your own vehicle. Third-party liability plan is mandatory for all motor vehicles under the Motor Vehicles Act.
◇ Comprehensive- This type of insurance covers damage or losses if you met with an accident. It also has coverages for the risks like theft, damages to accessories or natural and man-made calamities like storm, flood etc.
So here are some general rules to follow when you buy motorcycle insurance.
- Always get a proper quote before putting money down on a bike. Search online about the bikes you want to buy which give high-performance, modest power and are lightweight. The less expensive motorcycle will cost less to insure, whereas highly expensive vehicles will cost more premium amount of the insurance plan. Be aware of bikes that have aftermarket models or engines since these are red flags to many insurers. Take your time and search for the vehicles you are interested in, then contact a broker or enquire online who will explain you in details what are the suitable insurance coverages for your motorcycle.
- Don’t waste your time being evasive and vague; answer the questions asked by the broker or fill in the application clearly in details. Several cases of traffic violations, accidents, cancellations of previous policies are the details which are extremely important to determine whether you qualify or not and how much you have to pay.
- Remember, when you buy an insurance plan, there are a lot of details to understand. There is nothing as such “perfect” insurance; the one that suits your requirement should be finalised. Some people can apply to have theft coverage on an inexpensive motorcycle to feel comfortable; for example, some people can also take collision coverage for their bikes because they have a very tight budget.
Two-wheeler insurance market has changed drastically since the emergence of new players. Purchasing motorcycle insuranceonline has become a cakewalk with a hassle-free and quick process.
Some of the benefits of buying motorcycle policy online are:
● Instant policy- Policyholders are now able to get instant digitally signed car insurance policy with the help of faster banking facilities and new technology.
● Add-Ons or Optional Covers- It provides the facility of personal accident cover for pillion riders, protection for accessories and spare parts. It also includes zero depreciation coverage.
The additional coverage is offered at a slightly extra cost, but in case of any unfortunate happenings, the insurance company goes a long way to make the insurance process easier after filing a policy claim form which is mandatory.
● Transferring No Claim Bonus(NCB)- If a person purchases a new motorcycle, then the insurance companies offer an easy transfer of No Claim Bonus. The NCB’s are given to the policyholder by the insurance company. The secure transfer of no claim bonus option means that the person is eligible for safe driving practices.
● Discounts- Policyholders can get some discounts on the premium amount considering some facts. Discount is given to the policyholder whose car is protected via an ARAI (Automotive Research Association of India) approved anti-theft device. Some of the professionals like doctors, chartered accountants, defence personnel are also eligible to get a discount.
The motorcycle insurance policy doesn’t work in some situations, such as:
● The procedure won’t work if mechanical or electrical breakdown, failure or any consequential loss happen.
● Damage to tubes and tyres, unless the motorcycle is also damaged at the same time, in this case, the company should be liable to bear the loss to 50% of the cost of replacement.
● Any accidental damage or liability caused or incurred outside the geographical area.
● Any claim arising out of contractual obligations.
Motorcycle insurance is the ideal solution to stabilize exceptional cost that may arise due to damage caused to the vehicle due to accidents. The two-wheeler insurance cover protects all types of motorcycles. Thus, it is essential to acknowledge these coverage limits, criteria and benefits before you take up any motorcycle insurance plan.
