Some Two Wheeler Insurance Secrets That You Should Know About

Even before you purchased a bike, you must have heard several times that a two-wheeler insurance policy is a mandatory requirement for all bikes registered in the country. It comes as a regulatory requirement of the Motor Vehicles Act and no vehicle owner can override the law. Hence, it is not only essential to buy a bike that suits you well, but also an insurance policy that provides adequate coverage. A two wheeler insurance policy is useful in providing a financial shield for repairs as well as ensuring compliance with the law. But, as a policyholder, not all are aware of these lesser-known secrets of bike insurance plans. This article sheds some light on these secrets to help you understand and select a two-wheeler insurance policy in a better way.

1. The insurance premiums depend on the model and make

The model and make of your two-wheeler play a crucial role in determining the cost of insurance cover. For instance, the cost of insuring a superbike is high when compared to a scooter designed for intra-city travels, considering the repair costs. The primary reason for such a difference is the IDV or insured declared value of the vehicle. Thus, every model will have a different premium based on its IDV. *

1. Avoid raising minor insurance claims

A comprehensive two-wheeler policy helps you pay for the cost of repairs in case of any damages. But at the same time, you end up foregoing your accumulated no-claim benefits. This accumulated no-claim bonus (NCB) is a concession that the insurance company offers in the event no claims are made during a policy tenure. Thus, at the time of two wheeler insurance renewal, there is a markdown of the premium amount. For minor repair costs, you end up giving up the accumulated NCB as well as the deductibles of your insurance plan, thus increasing the effective outflow. So, it is best to avoid filing an insurance claim for minor damages. *

1. There are different ways to save bike insurance premiums

At times, a comprehensive policy loaded with add-ons can be heavy on your wallet. But using the following tips, you can save on the premium amount:

• Install anti-theft devices that increase the security of your bike, bringing down the risk for the insurance company. Doing so, in effect, lowers the insurance premium too.
• Since IDV is crucial to determine the insurance premium, you can save premiums by ensuring that the right IDV is communicated.
• Avoid modifying your bike as it increases the risk that the insurer must undertake and hence, impacts the premium.
• Make sure to renew the policy on time to avoid any lapse in coverage and the subsequent loss of renewal benefits.

*All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C applies.

1. You will not lose the NCB in case of a change in the insurance company

As discussed above, the NCB is an accumulated benefit that is available for comprehensive policies at its renewal. But a lesser-known tip is that such an NCB can also be transferred to a different insurance company in case of a change of insurer. There is no restriction on transfer. You only need to provide the new insurance company with an NCB transfer certificate from your existing insurer and the same accumulated benefits will be available. Remember that no NCB benefits are available for two wheeler insurance third party liabilities. * * Standard T&C Apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.