How to Select the Right Two-Wheeler Insurance Policy in India?

In India, more than 70% of all automobile owners lack insurance policies on their motor vehicles. This statistic is in contrary to the provision stipulated by Motor Vehicles Law, 1988, which describes the lack of automobile insurance policies as a punishable offense, and if caught, can lead to a penalty of Rs. 1,000 or 3-years jail time.

The provision was set into motion on the 1st of September 2019, on account of the burgeoning rate of vehicular accidents in India. On average, 1,200 road accidents happen every day in India, and more than 377 individuals’ lives are claimed in the same. 25% of such statistical data involve two-wheeler accidents. 

Two-wheelers are one of the most purchased motor vehicles in India with a record sale of 21 million units in 2019.

With road fatalities increasing every passing year, two-wheeler insurance policy is imperative when purchasing a new vehicle. 

Factors to consider when purchasing an insurance policy

Insurance policies from different financial institutions and aggregators vary considerably on several factors – coverage terms, premium values, and plan tenor. Consequently, you should consider every aspect of an insurance policy before purchasing one. It will ensure that you choose the right policy that will complement your financial affordability adequately. 

Other factors which you should consider before purchasing a two-wheeler insurance policy are –

  • Coverage type: In most cases, two types of insurance coverage facilities are offered by financial institutions and NBFCs such as Bajaj Finserv – comprehensive coverage and liability-only coverage. 

In the case of the comprehensive plan, you can claim compensation against damages to your vehicle as well as damages suffered by a third party where you are liable to reimburse. 

For a third party bike insurance plan, you can only claim compensation in case of damage caused by you to another individual wherein you are liable to pay for damages. You should duly consider your needs and apply for a suited coverage type. Insurance aggregators suggest a comprehensive coverage policy for all-round financial support.

  • The extent of coverage: Follow through the extent of coverage reputed insurance aggregators provide on their 2-wheeler insurance plan. It is essential to know under what circumstances you will be financially covered before approaching any insurance policy. 

To avoid confusion, make a list and tally the features offered by different financial institutions to make an effective decision. Also, consider the jurisdiction of such coverage and whether it extends beyond your locale.

  • Ease of availing claims: It is essential to be aware of the insurance claim procedure. An insurance claim is an emergency financing facility, and the less the hassle, the better. In view of that fact, consider the aggregator that provides claim settlements with the least possible formalities.
  • Additional features: When opting between bike insurance in India, go through the additional features they offer in case of vehicular perils such as coverage for the pillion rider or spare parts. 

Few reputed financial aggregators also offer features such as zero-depreciation cover. With this feature, your vehicle’s value will not be depreciated year in year out, and you will be able to avail full compensation of your original value.

These are a few factors which you should consider before purchasing an insurance policy. You should also take into consideration a few points on your end before committing to bike insurance online. 

These are –

  • Credit score: If you hold a substantial credit score, you may be charged less for premiums. 
  • Other policies: In case you are currently paying premiums on other policies such as life insurance policy, you should consider availing a plan with lower premiums.
  • Driving history: You need to possess a clean driving history to avail of lower premiums.

Once you have considered these factors, you are set to conclude your purchase of two-wheeler insurance policies. Make sure to renew the policy to enjoy its benefits without any limitations.