4 Steps to Buy the Best Insurance Policy for Your Two-Wheeler

As per the Indian Motor Vehicles Act, it is illegal to ride a two-wheeler in India without a valid insurance policy. However, it is not just about legal implications that make an insurance policy for bike essential. Riding a bike exposes you and your bike to many threats. It is thus important to protect yourself financially against the possible risks through a good bike insurance policy. Follow these 4 simple steps to purchase an insurance policy without any hassles.

The first step is to choose the right type of bike insurance policy . There are two types of policies to consider; third-party policy and comprehensive policy.

• A third-party policy provides coverage against any damage caused to third-party or its property. The IRDAI governs the premium of a third-party policy based on the engine capacity of the bike. Thus, the premium is standard across all the insurance companies. This is usually preferred by people who have bikes that are more than 7-10 years old.
• A comprehensive policy provides coverage against damages caused to third-party as well as your own bike. The premium of a comprehensive policy could vary across insurance companies based on various factors such as coverage amount, deductibles, add-ons, etc.

It’s advisable to select an insurance company based on reviews and its claim-settlement ratio. A high claim settlement ratio means you have a high chance of successfully making claims in case of an accident.

It is important to customise the policy according to your needs and budget. Here is what you need to do to customise the best policy for you:

• Pillion Cover
• Medical Cover
• Engine Protection Cover
• Zero-protection cover

• Setting the IDV of the Bike: The Insured Declared Value (IDV) of a two-wheeler is the amount the insurance company promises to pay to the insured in case of total damage or loss. For bikes up to 5 years, IRDAI sets up guidelines to calculate the right IDV based on the depreciation every year to the listing price of the bike. If the IDV is higher than this value, the insurance company will only pay the amount as per IRDAI guidelines. Also setting it too low can mean a loss for you in case of filing a claim. For bikes above 5 years, the IDV is mutually agreed upon between the insurer and the insured.
• Choosing Add-ons: For additional coverage, it is essential to choose the right add-ons that may not be covered otherwise in the policy. Some of the add-ons are:

Once you have customised a policy according to your needs, make sure you review it carefully. Here are a few things to check before you make the payment:

• Inclusions and exclusions of the policy
• Your bike details such as chassis no, bike no, etc. on the policy document
• Date of renewal, etc.

Once you have reviewed carefully, it is time to pay and get the policy document. If you are buying/renewing it online, you can get it emailed and also couriered to your registered address.

Motor insurance policies don’t just provide financial security, they eliminate future risk and take care of your liabilities for you, now and in the time to come. Make sure you spend ample time to choose the best insurance policy for a bike ; one that covers you amply against all the possible risks.

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.