Time to Renew your Bike Insurance Policy? Evaluate these 5 Crucial Things!
We all want to keep our two-wheelers secure and well-maintained. However, it is impossible to predict what kind of situation you may encounter while riding. It is at this point that the requirement for two-wheeler insurance becomes evident. The accident rate has significantly increased in recent years. As per the data published by a report, in 2021, a skyrocketing figure of 1,55, 622 fatalities due to road accidents was registered in India. It is difficult to drive peacefully when there are fully packed traffic jams, poor road conditions, and a pressing need to reach somewhere. The ideal way to handle such circumstances is by purchasing comprehensive bike insurance.
If you want to avoid paying for unnecessary maintenance and repairs, make sure to get 2 wheeler insurance and renew it on time. However, before you head out to renew your policy, there are a few crucial things you need to evaluate. By evaluating these things you can determine the ideal coverage for your bike when it’s time to renew your existing plan.
Benefits of renewing your two-wheeler insurance policy
- Protection against man-made or natural disasters: Renewing your comprehensive bike insurance policy safeguards you against any financial losses caused by man-made events such as war, burglary, strike, theft, or accidents as well as natural disasters such as floods, earthquakes, lightning, landslides, floods, and self-ignition. If your two-wheeler sustains any damage as a result of these tragic events, the insurer covers the service, repair, or replacement charges.
- Legal compliance: Having valid 2 wheeler insurance is mandatory by law for two-wheeler owners. If you are riding a two-wheeler without insurance, the police might sentence you to up to three months in jail.
- Avoid third-party liabilities: Imagine that while riding your bike, it unexpectedly crashes with another person’s car or property, causing damage. The amount of money you will need to make things right will definitely be substantial. Nevertheless, if you renew the insurance before it expires, the third-party coverage will remain in effect.
Discounted premium amounts: The majority of online insurance platforms provide incredible discounts when you renew your existing bike insurance policy. If you are unable to renew before the deadline, you have an additional 90 days to do so. Even then, if you don’t renew, the policy and any associated benefits, such as a no-claims bonus, will expire.
Things to evaluate when renewing two-wheeler insurance
Now that you are well aware of the advantages of renewing your two-wheeler insurance, let’s talk about the top five things to take into account when doing so.
- Choose the insurance type and the coverage amount before expiration: Whenever you purchase or renew a two wheeler insurance, you have the option of changing the insurance type. While renewing you can opt for a comprehensive bike insurance which provides coverage for the policyholder’s bike as well as his life. Therefore, in the event of total, partial, or temporary disability, the owner of the bike may be entitled to compensation. Additionally, in the unfortunate event of the owner’s death, in an accident involving the insured two-wheeler, the nominee will be entitled to the total capital sum insured.
You must choose the insurance type as well as the level of coverage by taking the risk element into account. Also, be mindful of the fact that the insurance premium depends on the level of coverage. The higher the coverage, the higher will be the premium and vice versa.
2. Check for the NCB: The NCB or No Claim Bonus is a discount on the premium that the insurance companies award to such policyholders who don’t file a claim on their two-wheeler insurance coverage. It becomes effective after the first year of the insurance policy.
The minimum NCB discount is 20% whereas the maximum discount goes up to 50%. After each claimless year, the NCB increases. Before you renew your 2 wheeler insurance, check to see if your insurer is offering you the best NCB discount.
3. Provide correct details: Whether you are renewing your existing insurance policy or buying a new one, it is imperative to fill out the application form correctly. Similarly, the policy document or the policy brochure from the insurer must provide a complete list of terms and conditions.
Make sure to thoroughly go through the information and notify the insurer of any discrepancies. Your claim may get rejected in case there is any incorrect information. So, pay close attention to the policy terms and only sign after reading the entire document.
4. Wisely choose the IDV: The IDV in two-wheeler insurance denotes the sum the policyholder is eligible to receive from the insurer in case their two-wheeler is involved in an accident. Depreciation affects the IDV, thus as a bike gets older, its value declines. The two wheeler’s actual value serves as the foundation upon which the CSI and premium are determined.
Not to forget, insurers provide you with the option to choose your own IDV. However, as the IDV increases so will the premium for it.
5. Buy necessary add-on covers: The advantages of bike insurance coverage are enhanced with the inclusion of add-ons. While a few add-ons provide hospitalisation coverage, others waive depreciation, offer NCB protection, or guarantee 24*7 roadside assistance.
Similar to the IDV, additional bike insurance add-on covers also drastically raise the premium. Nonetheless, it makes total sense to incorporate them in your 2 wheeler insurance policy given the significant advantages of such covers.
So now you know the five crucial aspects you need to evaluate while renewing your comprehensive bike insurance policy. If you have an active insurance plan covering your two-wheeler not only will your level of comfort grow, but you’ll also be able to drive without stress.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.