- About Coverfox
What are the things you should consider before buying a bike insurance plan? Here are some of the things that you need to know when you purchase and renew your bike insurance plan.
When you are perched on top of the seat straddling your bike close to your body, that feeling is a very liberating one. No wonder, bikes are seen as a means of choice to commute for a huge portion of our population, and rightfully so. But remember, riding a two wheeler is as much fun as it can be dangerous. Even if you go wrong in the turn that you take atop your bike, do not mess up with the two wheeler insurance that should protect you, the accompanying rider and your bike.
Bikes are fun; bikes are young. They not only take you from one end of the city to the other, but they also do so in style. Once you master the art of riding a bike, nothing else comes close to the exhilaration of buzzing around the city (at a reasonable speed) on one and exploring places on your own.
But the key word in this entire journey centers on ‘mastering’. To enjoy your ride safely, you will have to master the art of riding a two wheeler— and also the art of buying a two wheeler insurance.
Just as a well-oiled engine ensures a smooth bike ride, when youbuy two wheeler insurancethat fits your requirements correctly, you are protecting yourself, your pillion rider and the bike as it should properly be protected.
On that topic, do you know there are at least 11 common mistakes that are committed when buying two wheeler insurance? Here is a list of all of them below. Know them to avoid them.
1. Not transferring two wheeler insurance policy while buying second hand two wheeler
It is a relatively common practice in India to purchase second hand two wheelers at a good price. One of the most common mistakes committed concerning bike insurance is forgetting to get the insurance policy transferred under the said circumstances.
That either leaves you and your bike uninsured, or you have to buy a new plan. Decide to transfer the existing bike insurance policy plan from the old bike owner to your name, we say.
Else, to stay on the right side of the law, choose an insurance provider and buy a new policy or get the existing one transferred. Do this within the permissible time window of doing so to avoid penalties.
2. Letting your policy lapse
More scarily, it is also very common to find many bike riders whizzing around on their bikes with zero valid coverage, thanks to the lapsed bike insurance policy.
You are already committing an offense in the eyes of the law if you do so, notwithstanding the most important fallout of this issue. - That is, you being exposed to every financial demon that you have no shield against in the event of any incident.
3. Not preserving No Claim Bonus:
If you have driven carefully and avoided any incident, there will be no bike insurance claim by the end of the year. To reward you for being so diligent, your insurer offers a No Claim Bonus that lightens your premium load for the next year. This reward is also for your low-risk status as well as the act of not filing for minor claims.
Here is how to calculate the NCB of a two wheeler. Just as in the case of a car, all you have to do is check if there were any claims last year and last year’s NCB.
Here is a table showing how NCB is calculated across the motor insurance industry.
|CLAIM FREE YEAR||BONUS %|
Do also consider avoiding to file for every minor injury claim as this may cost you the No Claim Bonus.
4. Not selecting correct NCB as per previous year policy:
In the previous point you learned about the importance of the No Claim Bonus discount is and the various ways to protect it. There is one more point to remember about this discount.
Always remember to select the correct No Claim Bonus percentage. If you choose a higher No Claim Bonus number, it will amount to fraud, and you do not want to fall into this category.
5. Not selecting the right IDV:
The Insured Declared Value or IDV is the maximum sum assured agreed upon by the insurance provider to be reimbursed to the two wheeler owner and policyholder in the event of its theft or total loss.
In other words, when buying two wheeler insurance, IDV is the supposed current market worth of the vehicle. The IDV value is arrived at based on the manufacturer's present value and depreciation based on the vehicle's age. The thumb rule to follow is the greater the IDV, higher the premium and vice versa.
6. Not intimating about claim on time:
Always inform your insurance company or agent as soon as an accident or loss has taken place, or with as minimum a delay as possible.
Most companies have a window of 24-48 hours from the time the accident occurred to be notified. Respect the rules and call the company or agent at the first given opportunity.
7. Correct Policy Expiry Date:
8. Not selecting the correct insured name as per the RC and Previous Policy:
9. Not mentioning correct personal details:
10. Not mentioning nominee:
11. Not mentioning correct hypothecation details:
Recommended Link:Guide to Getting Two Wheeler Insurance for Old Vehicles