Top 5 details for your bike insurance check?
When shopping for a new motorcycle, you consider a number of factors such as the brand, model, mileage, price, maintenance cost, and so on. Similarly, when purchasing a bike insurance policy, it is important to do some research to ensure you get the best policy.
We have listed 5 important factors to check before purchasing a bike insurance policy:
Type of policy
There are two types of bike insurance policies available in the market; comprehensive and third-party insurance. When purchasing an insurance policy, you must determine which one is best suited to your requirements.
Third-party insurance is mandatory in India; it covers damage to third-party property caused by your vehicle but does not cover theft or damage to your own vehicle. While, comprehensive insurance will help insure you against any third-party damage which may occur due to an accident or any other unfortunate event, as well as your own vehicle damage.
In most cases, both third-party insurance and comprehensive coverage are only valid for a year, unless you have opted for long-term insurance. Before purchasing a policy, it is important to conduct a thorough bike insurance check.
A bike insurance premium is an amount you need to pay in order to receive the benefits under your policy. A two-wheeler insurance premium is calculated using a number of factors. One of them is the Insured Declared Value (IDV), which determines the premium based on the current market value of your bike. It can be calculated using your bike’s approximate current market value. It is important to compare the bike insurance to check the amount of IDV you need to offer. Generally, the IDV for high-end bikes is higher than for simple bikes.
It is important to go through the terms and conditions of a bike insurance policy to understand what it covers. The claim process becomes easier if you understand the coverage under your policy.
A comprehensive policy will typically cover the following:
- Natural disaster damage such as floods and earthquakes
- Damages caused by accidents, fires, terrorist activities, and so on
- Theft of a vehicle
- Damages caused by a third party
To avoid claim rejection, it is critical to conduct a bike insurance check to ensure that your damages are covered under the policy.
Policy exclusions are risks that an insurance company will not cover. As a result, understanding your policy’s exclusions is just as important as understanding what it covers. Nobody wants their claim to be denied simply because they sought compensation for damages not covered by their bike insurance policy. Therefore, when selecting bike insurance, check to make sure your policy doesn’t have too many exclusions.
Claim Settlement Ratio
The primary goal of purchasing a bike insurance policy is to seek help from the insurance company in times of need. Claims Settlement Ratio (CSR) is the ratio of claims paid by an insurance company to total claims incurred during the fiscal year. It indicates how good an insurance company is at settling claims. So, when choosing bike insurance, check whether they have a high CSR.
Having bike insurance is essential not only to meet legal requirements but also to avoid financial hardship in the event of an accident. Ensure that you are keeping all the above-mentioned factors in mind when searching for a bike insurance policy that suits your needs.
Top 5 details for your bike insurance check