Guide to Choose Bike Insurance Policy!
One of the most important tasks that bikers need to do is to find a bike insurance policy that suits their needs. That’s because different policies have different features, and it can be difficult trying to figure out which one is the best for you. This article offers help in guiding you to narrow down your options and find bike insurance tailored to your personal goals.
1. Select Insurance type wisely:
There are basically two types of bike insurance depending on the scope of coverage:
Third Party Bike Insurance:
It is mandatory to have a third-party bike insurance for all the bike owners in India. It provides financial assistance to bike owners in compensating the damages caused to the third party in an accident. As per the scope of coverage, your bike insurance policy will provide financial assistance up to Rs. 1 lakh for the damage of property and no limit when accident results in death or disability of the third party.
Comprehensive Bike Insurance:
Comprehensive Bike Insurance covers the damages caused during an accident to a third party as well as your own bike. It is an extensive bike insurance policy that helps you financially for damages caused during accidents to own a bike, thefts and natural and man-made calamities. It covers all the benefits of third-party bike insurance plus the own bike damage.
Between the two types of bike insurance, a third party bike insurance is a mandatory requirement under law, but getting a comprehensive bike is a choice. We generally recommend getting comprehensive bike insurance if your bike is new or if you use it frequently for travelling.
2. Compare bike insurance online:
You can refer to the table below to compare bike insurance online on various parameters before selecting the best bike insurance policy.
Insured Declared value (IDV) and premiums online:
IDV is the maximum sum assured that the insurance provider shall pay on the bike insurance policy. Premiums are paid by the policyholder to the insurance provider for getting their bike insured.
Select the insurance companies which offer a certain sum assured at lowest premium to buy bike insurance online.
Claim Settlement ratio (CSR):
CSR is one of the most important points of comparison. It denotes the percentage of claims settled by an insurance company against all claims received in a year.
Select insurance companies having higher CSR to buy bike insurance online
Incurred Claim ratio (ICR):
ICR indicates the financial ability of the bike insurance companies to pay claims. ICR value is calculated using the value of claims paid against the total premiums received in a year.
Select insurance companies having higher ICR to buy bike insurance online.
Solvency ratio:
Solvency ratio indicates the financial stability of an insurance company as it compares all assets and inflows against the liabilities and outflows.
Select insurance companies having higher Solvency ratio to buy bike insurance online.
Claim settlement speed:
Claim settlement speed shows how quickly the insurance provider approves and disburses the claim amount. Select insurance companies having quick claim settlement speed to buy bike insurance online.
Cashless Garage Networks:
Cashless garage networks are garages approved by the insurance provider for cashless bike repair. Select insurance companies having a long list of cashless network garages to buy bike insurance online.
Online customer reviews:
You may view the ratings and read reviews of the customer service experience on internet for any Insurance company. Select insurance companies having highest online ratings to buy bike insurance online.
Additional benefits or riders:
Additional riders help in enhancing the scope of coverage of a bike insurance policy such as pillion rider, zero depreciation, invoice protection, personal accident cover etc.
Select insurance companies having various add-on benefits and riders to buy bike insurance online
3. Tips to reduce premiums on your bike insurance policy:
You can refer to some suggestions mentioned below to reduce the premium cost on yourbike insurance policy:
Avoid Unnecessary Add-Ons:
2-wheeler insurance companies offer several additional riders such as Engine protection, Zero depreciation, Roadside assistance, etc. along with the main policy. These additional riders increase the scope of your insurance coverage but also increases the premiums of your 2-wheeler insurance. Hence, you should select these add-ons wisely and avoid purchasing unnecessary add-ons which would help in reducing the cost of premiums on your bike insurance.
Increase Deductibles:
Deductibles are a portion of total claim that the policyholder may choose to pay it themselves. Most bike insurance buyers opt for deductible as 0, in this case, the insurance company would pay 100% of the claim amount, however, keeping the deductible as 0 increases the cost of your premiums. You can increase the deductibles to reduce the cost of premiums. However, do not increase deductibles randomly, make sure to check that increasing deductibles does not put you in liquidity crises and you are comfortable paying the said portion of the total claim.
Bear expenses on small damages by yourself:
Bike insurance companies provide discounts on premiums in the form of No Claim Bonus (NCB) for every policy year you do not make a claim, this helps in reducing the premiums of your bike insurance greatly.
Discounts on premiums under Non-Claim Bonus benefits:
Years | Discounts in Premium under NCB |
| If claim is taken in last 1 year | 0% |
| If claim is not taken for 1 year | 20% |
| If claim is not taken for 2 years | 25% |
| If claim is not taken for 3 years | 35% |
| If claim is not taken for 4 years | 45% |
| If claim is not taken for 5 years or more | 50% |
Reducing the IDV on your bikes:
Adding new parts such as alloy wheelers, spoilers, etc to upgrade your bike performance or looks would increase the IDV of your bike and thus increase the premiums as well. You may avoid adding additional parts to reduce the IDV and premiums.
Reduce Insurance coverage on old vehicles:
You can opt to have only the Third-party insurance or a comprehensive insurance with very low IDV for your old bikes to reduce the premiums.
Avoid insurance policy to lapse:
A lapsed insurance policy does not get the NCB benefits. Hence, make sure to get your bike insurance renewal on time to continue getting the NCB benefits on your premiums.
