Most of us love to ride bikes. While we do have ample knowledge and a keen interest in that latest sports bike which has hit the nearest showroom a few blocks, there are also a few misconceptions or unanswered questions about something more important – bike insurance.
Bike insurance is beneficial for both you and your bike. Road accidents are on the rise since the past few years, and owning bike insurance is now more important than ever. Unforeseen mishaps are not under our control, but in case it does happen, are you ready and covered with insurance to tackle it? Do you know how to do bike insurance online?
So let us take a look at some of the most common FAQ (Frequently Asked Questions) about bike insurance:
1.What are the documents required to purchase insurance for a two-wheeler?
Please be aware that once you purchase a two-wheeler in India, it is mandatory to insure your vehicle according to the Motor Vehicle Act, 1988. While the law mandates a minimum third-party cover, it is advisable to get a comprehensive bike insurance policy to ensure complete coverage of bike, owner-driver and third-party liabilities.
The list of documents that you require to purchase new insurance are as follows:
- Photo identity proof such as PAN card, Aadhar card, etc.
- Address proof such as Electricity bill, Phone bill, etc.
- Old bike insurance policy number (if your bike was insured previously)
- Online payment information such as details for Debit/Credit card or internet banking details.
Above mentioned items is a generic list of documents which you will need while purchasing online insurance for two-wheelers. The actual list of required documents may vary with different insurance providers.
What is covered under comprehensive two-wheeler insurance?
Comprehensive two-wheeler insurance offers you complete coverage, unlike a third-party insurance cover which will cover only against damages/losses towards a third-party person or vehicle. Comprehensive bike insurance will cover:
- Accidental damages to your bike and the third party
- Covers against thefts or total loss
- Covers against damages caused by natural calamities such as earthquakes, floods, etc. and man-made causes such as riots, vandalism, etc.
- Personal Accident Cover to the owner-driver
Comprehensive bike insurance is a combination of benefits offered by third-party insurance along with an own-damage cover, which will protect you financially in matters of any unforeseen events.
How is bike insurance premium calculated?
Many people use a bike insurance premium calculator for finding the premium amount for their bike insurance. You can easily find a bike insurance calculator online wherein you enter basic details about your bike and your insurance needs, and it fetches you the premium amount.
Calculation of two-wheeler insurance rate is based on multiple factors such as:
- Insured Declared Value: The IDV is the current market value of your two-wheeler. Your new bike starts depreciating in value, the moment it is driven out of the showroom. The IDV is the exact value of the bike at the time of buying the insurance policy. The IDV determines the total sum assured you would receive if your bike is stolen or in case of total loss (when the cost of repairs for the damages is higher than the value of the bike).
- Make & Model of Bike: If you own an expensive bike, naturally, the premium amount would be higher as it would ask for a higher financial liability to the insurer due to higher IDV. If you own a bike which costs more than Rs. 3 lakhs, the premium amount would be higher than for bikes in the range of less than Rs. 1 lakh.
- Bike Manufacture Year: The IDV (Insured Declared Value) of a bike decreases with time. This is directly proportional to the premium cost. Lower the IDV lower would be the premium. The premium charged for a newly purchased bike would be much higher than for a bike which was purchased two years ago. However, this is not a hard-and-fast rule.
- Geographical Location of registration: Some regions are more prone to accidents or theft or other kinds of damages. The bike insurance premium is higher for such regions. For example, urban or metropolitan areas are characterised by high traffic and resultant accidents. As a result, the premium for a bike registered in a metro city will be higher than in a rural area.
- Engine Cubic Capacity: The higher the cubic capacity of the engine, the higher will be its price, leading to a higher premium cost.
There are also multiple other factors which attribute to the premium amount calculated for bike insurance. While most factors are uniform across the industry, some factors may vary from provider form provider. Make sure you use the premium calculator of the respective provider before you buy a bike insurance policy.
How do I renew a two-wheeler insurance policy online?
Renewal of two wheeler insurance online is a simple process. You only need to keep your old insurance details handy with you. Here are the steps which you must follow:
- Visit the policy renewal section on the official website of your policy provider. You need to go to the bike insurance renewal form.
- You will be asked to enter the bike registration number and other basic details.
- Next, choose the bike insurance plan which you want to purchase.
- Update your IDV details.
- After completion, it will display a premium amount which you need to pay.
- It would then ask you to select a mode of payment of your convenience.
- Once payment has been successful, your bike insurance policy will be renewed.
How can I claim my two-wheeler insurance?
Unfortunately, in case if your bike meets with an accident and needs repair work, you will need to contact your insurance company. A representative will be sent to evaluate the situation and estimate the damage.
The representative will then register your claim and help you with a claim number which you can use later during reimbursement. You can then take your bike to the nearest network garage and get it repaired. You can opt to reimburse those charges with your insurance company, or you can also avail the cashless facility wherein the insurance company will pay the repair charges directly to the garage owner.
Even though these are the five most common FAQs, it is always better to have a longer list of questions to ask. Always ensure to conduct complete research, compare multiple providers and check the policy coverage. That way, you can enhance your knowledge before buying the right bike insurance for your two-wheeler.