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The Different Facets to Consider When Shortlisting a Two-Wheeler Insurance Policy

Buying any new article is not getting home the first thing that comes up. Be it your new mobile phone or a piece of clothing. You explore various available options and then finally decide upon your pick. The same is the case with motor vehicles and its insurance.

Deciding on a new two-wheeler might seem a confusing task. With myriad choice to select from, it becomes a perplexing choice whether one model is right or the other. Similar is the case of two-wheeler insurance plans. There are many insurance companies having different insurance plans. What suits you depends on the coverage requirements along with how expensive the repairs for your vehicle are. This article describes the various facets that need to be considered when buying a two wheeler insurance online:

  • Type of insurance plan

The foremost consideration to decide upon is the type of insurance policy. Health insurance plans are classified in two broad categories—third-party plans and comprehensive plans. Third-party policies are the bare minimum prescribed by the law, the Motor Vehicles Act, whereas comprehensive plans are optional upgrade. Since third-party covers are a legal requirement, its premiums are also regulated by the IRDAI. Comprehensive plans, on the other hand, comprise of two components, third-party cover and own-damage cover. As the name suggests, an own-damage cover helps protect your two-wheeler against damages due to accidents or natural and man-made calamities.

  • Insured Declared Value (IDV)

Next factor to consider when shortlisting a policy for two wheeler insurance renewal or the first time is its IDV. Generally assumed to be the market value, but in fact, is vastly different from it. IDV is the maximum amount that the insurance company pays in the event total damage or damage beyond repair. Selecting the right IDV is crucial since it directly impacts your premium. * Standard T&C Apply

  • Add-on covers

Add-ons are optional policy features that can be purchased with standalone own-damage plans and comprehensive covers. These add-ons are over and above the standard policy and thus enhance the overall policy scope and push up the bike insurance price too. The right set of add-ons can offer far greater benefits as compared to its cost and hence must be carefully purchased.

  • Claim process & settlement ratio

While there are many plans offer more or less the same coverage and features, it is crucial to check how convenient is the claim process. The claim process decides the swiftness of approval and disbursement. In addition to that, you must also check for the claim settlement ratio. The regulator publishes such number on its website and is arrived at by dividing the total number of claims received by the number of claims settled. Thus, higher the ratio, higher is the chance of acceptance of you claim application.

  • Network of service garage

Two-wheeler insurance claims are either cashless or by way of reimbursement. For cashless claims, the repairs are required to be carried out at a network garage facility. The broader this network, the more areas you can get your bike repaired and avail cashless claims. Hence it is essential to compare the network garage when buying a two-wheeler insurance policy.

While these are few pointers that need to be compared, other policy components like exclusions, deductibles, premium, and feedback must also be kept in consideration. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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