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.
The Art of Buying Two Wheeler Insurance
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 you buy two wheeler insurance that fits your requirements correctly, you are protecting yourself, your pillion rider and the bike as it should properly be protected.
Common Mistakes Committed When Buying Two Wheeler Insurance
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.
What is the way out? Though a third party cover is mandatory, consider getting an Uninsured motorist cover when your original standard two-wheeler cover has lapsed. This Uninsured motorist cover will keep you and your bike safe against the financial issues stemming from any incident if such were to occur.
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
This hard earned discount is well worth preserve for the very reason that it keeps on giving benefits over time.
If you have sold your bike, remember to get the relevant documents to protect your No Claim Bonus. It belongs to you, not your bike; so it can be retained and transferred to the new set of wheels that you may purchase in the future.
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.
Some bike owners tend to think that it is best to declare an IDV lower than the market value. Because lower the IDV, more is the money saved on the annual auto premium. But there is a 100 percent chance that you will be compensated a lower claim amount in case of an accident, if an incident of this nature were to occur. So, please make an effort to declare the logically correct IDV.
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:
Remembering the right policy expiry date is critical when it comes to going to buying the new two wheeler insurance policy. Always renew the policy within the grace period to avoid it from lapsing. Else you stand to lose a lot.
8. Not selecting the correct insured name as per the RC and Previous Policy:
For the valid renewal of a bike policy, it is important that you choose the correct insured name as per all records, that is, as per the RC and the previous policy documents.
Even if it seems like a simple point, it is imperative that you pay it its due attention, as otherwise the policy will stand invalid.
9. Not mentioning correct personal details:
When you go to buy two wheeler insurance, forgetting or omitting to mention any crucial personal detail will qualify as an attempt to commit bike insurance fraud.
Any claim you file under these circumstances may legally be not attended to by the service provider and you may lose the cover as well.
Pay close attention to what details you are filling under your personal details section, and ensure that they are absolutely correct.
10. Not mentioning nominee:
In the event of any untoward incident occurring to you, the only way a member of your family can have the policy or the benefits transferred to them is if you have mentioned them as nominee when you had bought the two wheeler insurance initially.
Keeping that stringent rider in mind, please mention a nominee when you buy two wheeler insurance plans.
11. Not mentioning correct hypothecation details:
As mentioned in point 9 ‘Not mentioning correct personal data,' if you happen to mention incorrect hypothecation details when you buy two wheeler insurance initially, you are looking to court trouble when you file a claim.
To avoid any such issue cropping up at any later and inconvenient dates, please fill in the accurate hypothecation details right at the start.
Given that the usage of two wheelers is a necessity nowadays, not a luxury, you can hardly imagine the nastiness of being caught on the roads with an invalid bike insurance.
Do pay a little attention right at the time when you buy two wheeler insurance and you can rest assured for the rest of the time till your policy is up for renewal the next time.