6 Things You Should Know Before Buying Insurance Policy for Bike

Bikes are popularly believed to be the first love of all men. Buying a particular bike can be intimidating as one has to take the ride quality, mileage, style, colour, etc. into account. While we pay a great deal of attention to these parameters, getting the right insurance policy is often the most overlooked aspect of the entire bike buying procedure.Here are the six things you should know before buying an insurance policy for your new bike:

• Third-Party Cover: Third-party insurance policy does not cover your vehicle. It only covers the damages caused to another person or vehicle in case of an accident. This is a mandatory coverage if you want to ply your bike on public roads.
• Comprehensive Cover: Comprehensive plan insures your vehicle against any damage due to theft or accident. Additionally, it covers the damages caused to the third party as well. Most of the comprehensive plans safeguard your vehicle against natural calamities like floods, earthquakes, etc.

1. Type of Insurance Policy: All vehicle insurance policies fall in one of the following two categories:
2. Claim Procedure: A good insurance policy for the bike should have a straight-forward and easy claim procedure. Check the claim settlement ratio of your insurer to know the promptness and efficiency of claim settlements.
3. Insured Declared Value: In a layman's term, the Insured Declared Value (IDV describes the present market value of your bike. It is the maximum amount you are liable to receive from the insurance company in case of a total loss of your vehicle. Larger the IDV value, more is the compensation in case of theft!
4. The Cost of Premium: Cost of the annual premium can be the deciding factor while selecting a bike insurance policy . The premium cost depends on several factors like the engine capacity of your bike, the type of insurance plan, city, etc.
5. No Claim Bonus: No Claim Bonus (NCB) is the equivalent of cash-back in the insurance business. If you don't make any claim in the current year, you get an additional bonus while renewing your policy. The NCB usually starts at 10%-20% and keeps on accumulating with every claim-free year and goes up to 50% in the fifth claim-free year.
6. Add-on Plans: Insurance companies offer additional features to the base insurance plan. Pillion rider insurance, zero-depth plan, etc. are some of the most popular add-on covers. However, as you enhance the policy coverage, the premium will increase as well.

If you take these factors into account, selecting an insurance policy for your bike will be a piece of cake. Make sure that your insurance policy includes protections for all foreseeable situations as per your requirement and riding pattern.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.