two wheeler insurance policy

Considering the booming two-wheeler insurance market in India, investing in this insurance policy is now a trend among bike owners. As per the IRDA, out of 23.6 million two-wheelers playing in the streets, around 17.9 million have been insured with a comprehensive two-wheeler insurance policy. It has, however, also brought into perspective a 30% deficit in insuring two-wheelers due to high premiums for most insurance providers.

Besides, as per India’s per capita income, investing in a two-wheeler is itself a significant financial decision. Realizing the growing need for providing affordable bike insurance companies like Bajaj Finserv now offer a two-wheeler insurance policy that comes with fixed nominal premiums. Following the bandwagon, India’s reputed insurance providers are allowing their customers to save big on their two-wheeler premiums.

Here are some tips and tricks to reduce one’s premium outgo and make bike insurance policy affordable. Take a look –

[A] Compare among various insurance policies  

An essential tip before purchasing an insurance policy is to compare the available options. Considering the multitude of two-wheeler covers available in the market, you need to scan through the coverage benefits and premium rates, before settling on one. Choose one that offers the lowest premium rate and save big on premium costs.

Furthermore, an applicant can choose between third party two-wheeler insurance and a comprehensive insurance policy. While the former is a mandate by the Indian Motor Vehicles Act of 1988, the latter is recommended for all-round coverage.

  • Third-party liability-only insurance plans

A third-party two-wheeler insurance policy covers your financial liability for the damages caused by your insured bike to another individual, his/her property, or vehicle. The coverage extends to the third-party vehicle or property damages, injuries, or demise. However, a third-party two-wheeler insurance policy will not cover for any damages caused to the insured bike or RI

As the name implies, this insurance policy offers an all-round coverage. It compensates for financial losses incurred through damages to the insured bike, accident coverage for riders, etc. It also extends to third-party liability caused by the insured two-wheeler.

Unlike a third party bike insurance policy, a comprehensive insurance scheme also provides compensation against fire, theft, natural calamities, or any malicious activities.

[B] Look for available rebates

To economize the two-wheeler coverage, a policyholder can look for discounts that come with the scheme. One can avail a rebate if purchasing a long-term insurance policy and pay the premiums at once.

Moreover, if an individual holds the membership of a reputed two-wheeler association, he/she can also avail premium discounts.

Some of the best bike insurance policy offers to provide exclusive discounts if you avail them online. Lastly, you can also lower down your premiums to an extent depending on the safety devices installed on your two-wheeler.

[C] Utilise the NCB bonus discount

If a policyholder does not claim his/her insurance cover amount, certain insurers also provide an NCB (No-Claim Bonus). It awards the insured with a rebate during policy renewal. The discount rate starts at 20% and can reach up to 50%. Thus, while renewing your insurance plan, check the accumulated NCB rebates, and utilize it.

Now, thanks to the amendments made by the IRDA (Insurance Regulatory and Development Authority), two-wheeler insurance policies come with longer tenors. Insurance plans with a continuous coverage period of 3-4 years are significantly cheaper.

Premiums on a third party liability-cover remain constant during a continuous tenor, thus bringing down the overall premium outgo and also helping you earn loyalty premium discounts. Following the tips mentioned above will help you to save money while availing of a two-wheeler insurance policy in India.

 

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