Owing a bike is a smart choice nowadays, thanks to the city traffic. However, such convenience comes with a price. What if there are boulder stones when you take a sharp turn? What if your priced possession falls into the trap of theft? What if your two-wheeler collides with another biker and you do not have enough funds to pay the injured? Here is where two-wheeler insurance enters the picture.
If you understand the nitty-gritty of bike insurance, then you not just save money but also take good care of your motor. For those who are new to the motor insurance concept, this article highlights the key elements related to it.
What are the types of two-wheeler insurance policies available?
- Comprehensive policy: It protects your vehicle theft and damages caused due to fire, riots, flood, and terrorism. It also provides accidental cover to the policyholder in case of an accident. Plus, comprehensive policy handles the third-party liability at the time of the accident
- Third-party insurance: It takes care of the losses caused to the distressed party in the accident. However, it does not cover the damages caused to your vehicle
What factors affect the two-wheeler insurance premium?
- Insured’s Declared Value (IDV): It is the maximum about that the insurer pays at the time of making a claim. A fixed sum is offered to every insured vehicle. IDV gets calculated based on the manufacturer’s listed selling price and adjusted according to the standard depreciation rates.
- Cubic Capacity: If there is a rise in CC, then the premium of two-wheeler insurance India Motor Traffic segregates Cubic Capacity and minimum sum insured as per the following factors:
- Geography: The India Motor Traffic has divided the country into two parts – zone A and zone B. The A section includes cities like Bengaluru, Chennai, Ahmedabad, New Delhi, Mumbai, and Kolkata. Zone B covers the remaining parts of the country. The premium is higher for Zone A than B.
- Vehicle age: As the vehicle ages, the premium increases.
- Discounts: If you are a part of the Automobile Association of India, installed the anti-theft device, and hold a good credit score, you might get discounts on premiums
What is the renewal process?
- Bike insurance is a yearly Some companies offer a three-year comprehensive policy, which saves you from the trouble of renewing the plan every year
- You could renew the insurance from the same company. The best part of online bike insurance is, these get done with a click of the mouse
- If you have missed the renewal period, companies offer online renewal of break-in two-wheeler policy. This gets done without any hassle, verification, or documentation process