How to understand your Two Wheeler Insurance policy?

In India, any vehicle whether two wheeler or three wheeler, four wheeler or sixteen wheeler truck cannot run on roads without an active insurance policy. And if the vehicle is being used without an insurance policy, then it amounts to a hefty fine for breaking the law. Not only you have to face the brunt of law but it can cause a big hole in your pockets in case of any mishaps as well.

People can afford vehicle as per their income sources and requirements. Some buy two wheeler while others opt for cars or trucks for business purposes etc. But the motive behind government’s strict law for insurance policy is simple. It is to protect people not only from third party damages but also the protection of their own vehicle and physical damages in an accident (provided you have comprehensive cover).  In India, bike is one of the favorite rides that people enjoy through every walk of life. When you’re young it’s the long drives that you want to cherish, slowly it becomes one of the important mode of transport when you start working and also get married. Ofcourse, in olden days there needs no for explanation about the importance of this magic ride of your life. But compared to cars bike are more prone accidents and therefore it becomes imperative to have a suitable two wheeler insurance policy for your bike. Since the compulsory insurance law was passed, whenever you buy a two wheeler, you get a two wheeler insurance policy along with the vehicle. The policy lasts a year after which you can either choose to continue with the same policy, else change the policy to the company of your choice. Nowadays 90% of the companies provide insurance policies online via their websites.

Premium Calculation

The premium of your two wheeler insurance depends upon various factors. First of all there is the cost of the bike. Then there are other factors as well like rider insurance, pillion insurance and also 3rd party insurance. So with each addition, the premium amount keeps on rising. You can choose to lower the premium amount by lowering the IDV (Insurer Declared Value). This is the specified amount that the insurance company pays the customer in case the vehicle is stolen and not found.

Things Covered

When the insurance policy is bought the surveyor makes sure that the bike is in proper shape. So with the new bike, the insurance covers pretty much everything ranging from accidents, to break downs to rider and pillion injury and also 3rd party claims if the option is selected while buying the policy. However, plastic parts & tyre sadly are sometimes not covered since they come with their own individual manufacturer warranty. Other consumables like nut & bolts and grease is not included. Plus if your bike has previous scratches and cracks while renewing or buying a new policy, even those won’t be covered in the insurance policy.

1^st Party & 3^rd Party Claim

When buying any insurance, there you will always find a mention of “3rd party coverage”. A 3rd party coverage is actually the insurance cover to damage cause to the other person in case a mishap happens due to the fault of the insurance holder. This means that the insurance company when liable to pay only for the insurance holder is called a 1st party insurance cover. But if the insurance covers even the damage done to the referred 3rd party, then that is a 3rd party insurance.

Claim Procedure

Claim procedure works in a simple way, “Pay now, reimbursement later”. This means whenever there is an accident or physical damage due to manmade or natural circumstances you have to call the claims department of your insurance company and let them know about the incident. After that the claims investigator comes to the company workshop to inspect the bike and after a thorough assessment gives his or her go ahead. The amount reimbursed is never in whole and it covers about 80-90% of the total cost.

The market is filled with a lot of companies and there is immense competition for the consumer. But still just because the company is giving you a low premium doesn’t mean it is “The best policy”. Below is the checklist to select your insurance policy:

·         Complete Bike and Accessories cover

·         3rd party damage cover

·         24x7 Roadside assistance

·         Cashless facility in the nearest Authorized workshop

·         Accident cover for both rider and pillion

·         High IDV amount

It’s better to have something instead of losing everything. So with the information shared we hope you can now choose the best two wheeler insurance policies for your bike.

allianz.com/Corp/motor-insurance/two-wheeler-insurance.jsp">two wheeler insurance policies for your bike.