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When you buy a two-wheeler from a dealer, you will get many offers. Customers will be lured of a package which includes the vehicle insurance premium as well. Some dealers offer free (first year) insurance. However, customers should be aware of the intricate details before making a decision. Two-wheeler insurance is mandatory as per the Motor Vehicle Act in India. Before you roll out the bike from the showroom, you should pay the life tax, insurance and other formalities so that there will not be any issues.
The following myths are prevalent in customers:
- Free Bike Insurance
The dealer offers free two wheeler insurance which may not be free or in-expensive in reality. The insurance policy will be bundled in the package by the automobile dealers. If you get a free insurance policy, you should be aware of the coverage. In most of the cases, the insurance coverage will be insufficient. Some dealers will offer non-discounted premium which will be higher than the insurance policy purchased by the customer. However, the insurance is free for one year only and you should pay the premium for the coming years.
- No Need To Transfer Insurance Policy
When you are going to buy a new bike, many are under the impression that they are not required to transfer the insurance policy. If you are buying used motorbike, you should take steps to transfer the insurance policy from the seller. If you ride a bike without insurance, you will want to face legal issues. When you buy the bike and transfer the insurance policy from the seller, you will enjoy the insurance benefits as per the terms and conditions of the policy.
- You Can Renew The Policy After The Expiry Date
Many customers fail to renew the insurance policy before the expiry date. The insurance company will offer the policy for one year. You will get a reminder from the insurance company (either by email, SMS or phone call) to renew the insurance policy. By insuring the policy on or before the expiry date, you will enjoy many benefits. You will get discount on the premium with the application of the no-claim bonus. The No-Claim Bonus (NCB) will be applied when you do not file an insurance claim in the previous policy year. If you ride an uninsured bike, there will be great financial risk. There will be risk to the rider, the third party and the property. Hence, you should subscribe to a comprehensive insurance policy. The insurance premium will increase if you renew the policy after the expiry date.
- No-Claim Bonus (NCB)
The insurance company will reward the customer for riding the bike safely. If you have not met with an accident and do not make a claim by the end of the insurance year, you will get discount on the premium in the form of NCB. For every claim-free year, the discount on the insurance premium will increase. The insurance company offers a discount ranging from 5% to 50% as per the policy of the company.
- Fail To Select The Right IDV (Insured Declared Value)
The policyholder should select the right IDV so that there will be maximum compensation benefit when the vehicle is meet with an accident. Higher the IDV, it is higher the bike restoration capability so that there will least financial impact on the customer. If the bike was lost by theft or damaged in an accident, the bike insurance will offer the best compensation when the IDV is high. Hence, the policyholder should verify the IDV details before subscribing to a new plan or while renewing an insurance policy.
- No Requirement To Mention The Nominee
The policy benefits will be enjoyed by the customer by including the nominee particulars. The two wheeler insurance is designed to protect the interests of the bike rider. There will be protection from the third-party damage as well. However, in the event of the unfortunate death of the rider (policyholder), the financial benefits will be shared with the immediate family member. Hence, the policyholder should not forego the inclusion of the nominee particulars.
- Not Required To Mention Personal Details
While processing the claims, the insurance company will verify the details and the details shared by the customer should be very accurate. If the policyholder provides wrong or incomplete information, the claim may be rejected. Hence, it is the obligation of the customer to provide accurate and up-to-date information in the insurance policy proposal form so that there will not be any issues during the claims.
Other aspects
There are certain other aspects which will have an impact on the two-wheeler insurance premium. Hence, you should be aware of the terms and conditions.
- Intimation Of The Claim Can Be Done At Any Time
If there is accident or damage to the two-wheeler, the information should be conveyed to the insurance company or the agent at the earliest. Most insurance companies warrant information within 24 to 48 hours so that there will not be any issues in facilitating the claim. Hence, the policy holder should be aware of the rules and regulations of the insurance company. The claim will be processed quickly and easily by submitting the claim form with accurate information.
- Not Mentioning The Hypothecation Information
The hypothecation details should be filled-in accurately so that there will not be legal battles. While buying a two-wheeler from the seller (other than dealer) or dealer, you should mention the information of the lender. The lender’s details will be incorporated in the policy documentation. It will help you in processing the claims very quickly.
Conclusion
Two-wheeler insurance is mandatory to ride safely and cover the financial risk in a very efficient manner. There are various kinds of insurance plans offered by difference insurance companies. You should choose a policy that best fulfills your needs so that you can overcome expenditure involved in meeting the damage or loss of the vehicle and third-party damage. You should go through the policy contract very carefully.
