If you are looking out for a two-wheeler insurance plan, be it is for your new bike or you are at the renewal juncture, a bike insurance policy cannot be ignored. Considering its legal requirement and the financial benefit it offers, it is one thing where you must invest considerable time before buying.
But with a myriad choice of two wheeler insurance plans, the buying process can often be daunting and eventually lead to confusions. However, certain guidelines in the buying process can help you avoid these pitfalls. This article lays down these mistakes that you can avoid in selecting a robust tow-wheeler insurance plan.
- Not selecting the right type of insurance cover
Two-wheeler insurance plans are available in two flavours, one with a limited coverage known as a third-party plan and the other with more inclusive coverage known as comprehensive policy. The bare minimum requirements are of a third-party cover. However, such third-party plans only offer coverage for legal liabilities due to an accident. It can be either by way of protection against injuries to a third-person or damage to their property. Hence, such third-party plans are also known as liability-only policies.
The limitation of a liability only plan is that it offers no coverage for own damages. A comprehensive plan exactly covers such shortfall by bundling the own-damage cover alongside third-party cover thereby ensuring a comprehensive coverage. Considering the broad coverage a comprehensive plan offers, it is an advisable insurance cover. However, when strained with finances and you need to buy two wheeler insurance third party cover ensures legal compliance as well as basic financial coverage. *
- Letting the policy lapse
Another mistake that often goes unnoticed is letting your policy lapse. Waiting for it to lapse can mean no coverage till the time you renew it again. Any accidents during such interim period can mean no financial cushion as well as attracting penalties under the Motor Vehicles Act. In addition to these perils of a lapsed insurance coverage, an expired policy for a period of more than 90 days means the renewal benefits of no-claim bonus expire. Thus, it is best to renew your policy well in advance so that to avoid a lapse in coverage. *
- Not setting the right IDV
Be it your new bike or revising your insurance coverage at renewal, it is crucial to not ignore the importance of IDV. IDV or insured declared value is the amount which the insurance company pays in the event of total loss where your bike is damaged beyond repair and, it also includes theft. Thus, the insurance company helps you fetch the current valuation of your bike in such cases. Setting a lower IDV would mean a lower compensation is available if things go down south in effect increasing the amount of financial loss. *
- Not researching enough
Another mistake to avoid is not researching enough when it comes to insurance policies. There are myriad plans available in the market. Inadequate research will often end up in a policy either with inadequate coverage or a policy that does not check the right boxes. Hence, make sure to thoroughly research a policy that fits you right. *
* Standard T&C Apply
These are some tips that can help you avail robust insurance coverage. When you are buying a plan, do not solely focus on the two wheeler insurance price. Instead balance it with the features a policy offers with it. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.