The cost effectiveness of using a two-wheeler, along with other factors like Indian traffic and road conditions, plays a vital role in making this vehicle segment a popular choice among the people of India. The latest data released by the Society of Indian Automobile Manufacturers go on to prove this fact when it says that two wheeler sales grew by 4.86% in April-March 2019 compared to passenger vehicle sales growth of 2.70% during the time duration. However, before taking your favourite two-wheeler on the road, it is important to fulfill the legal obligation of buying a two wheeler insurance.
To avoid any mistakes while completing the important ritual of purchasing a two-wheeler insurance, it is imperative to keep certain points in mind and understand the types of available vehicle insurance plans.
There are basically two types of motor or vehicle plans – Third-Party Liability Plan and Comprehensive Package Policy. The former takes care of the expenses borne by the insured party in case the insured vehicle is responsible for any damage or injury to a third party. On the other hand, a comprehensive policy includes coverage for both third-party liability and any damage to the insured car or bodily injury to the policyholder. Some companies also provide personal accident coverage for the driver and the passenger of the vehicle.
Choosing the right two-wheeler policy from an array of products can be quite confusing and time-taking. However, comparing the plans on the basis of various features and parameters is an important task. Here are some points to consider while zeroing in on a two-wheeler insurance plan.
Compare Insurance Companies
- Check the authenticity of the companies by tallying their registration number with the list of providers given on the website of the IRDA.
- Check the financial health of the company. Only a financially strong company will be able to settle claims properly in time.
- Check the claim settlement ratio (CSR) of the insurance provider to ensure a smooth and hassle-free claim process when needed.
Compare Insurance Policies
- Compare the coverage and the premium offered by different policy Check which premium gives you the best cover. Never blindly go for the plan that offers the lowest premium.
- Do not ignore deductibles mentioned in the policy. Deductible is the amount you pay before the insurance company pays the claim amount. Every policy has a fixed deductible amount but you can increase the share, as this helps lower the premium.
- Check the No-Claim Bonus (NCB) provided by the policy. NCB is the discount you get on your premium if you do not make any claims in the previous policy year. The discount ranges from 10% to 50%.
- Check for the list of network garages under the company. This will help in availing cashless claim services, where the insurance company pays for any car repair, loss or accident. Check if the area you travel the most is covered in the company’s network.
- Do not forget the add-on covers. These are additional benefits that you enjoy on the payment of a little extra These help enhance the coverage of the base policy. Check for some basic ones like zero depreciation cover, key replacement, etc.
Check Insured Declared Value (IDV) of the Two-Wheeler
IDV is the maximum claim amount or the compensation you get when your vehicle gets stolen,lost or damaged. This value is calculated after deducting the depreciation cost of the vehicle from its market value. The IDV of an old two-wheeler is lower than the IDV of a new one. The IDV plays an important role in deciding the premium of the insurance.
Apart from keeping the above mentioned points in mind, also read the policy document and policy wording to understand the plan better. This can be done online for saving time and effective comparison of the coverage offered by the policy. Once you have scrutinized all the aspects of the provider and the policy you have chosen, there is only one step left and that is to apply. To purchase the plan, you can make payment via cheque, debit card, credit card, online transfer, etc. depending on the options offered by the company.