Two Wheeler Insurance: Major Mistakes You’re Making Right Now


India is one of the largest markets in the world when it comes to two wheelers. It is almost irrefutable that the two wheeler insurance market is one of the fastest growing in the world. While it is both mandatory and good to have a two wheeler insurance but we miss out on a lot of points in hindsight. Here are some of the major mistakes that you are making while buying an insurance for your bike.

  • Letting the policy Lapse

It is not uncommon for a lot of riders to zip around cities and towns without carrying a valid two wheeler insurance on them. There are two major problems with this. Firstly, you are breaking the law, as it is mandatory to have a valid insurance at all times. Secondly, you drop your guard against all potential financial issues. The same might also be a pain point at times while renewing insurance.

  • Policy Transfer

Another common practice in the country is to buy a second hand two wheeler. What a lot of such buyers forget to do is to transfer the existing policy to their name. It essentially means that your bike does not have a cover until and unless you buy a new one. One might not have an ultra-smooth experience with transferring the insurance but it saves you from a lot of headache and trouble.

  • Claiming NCB

NCB or no claims bonus is a benefit that insurers pass on to you for not claiming your policy within a specified time frame. It ranges from a minimum of 20% to a maximum of 50% discount on premium payable over a 5 year period. Thus, claiming your policy at every small incident might not be the best solution from a long term perspective. If the repairs or fixes are minor, it is better off to pay it from your pockets and preserve your NCB.

  • On time claims

In the unfortunate event of your meeting with an accident or losing your bike or other conditions that require claiming of policy, do not waste any time. Most of the insurers have a strict 24-48 hour deadline within which the incident must be reported. 

  • Playing with IDV

A quick talk with an agent and they will suggest you reduce the IDV of your bike, which in turn reduces your two wheeler insurance premium. But the decision might come back to bite you at a later stage. Make it a point to stick to a realistic IDV and not run behind saving few hundred rupees by reducing IDVs.

New Reasons For You To Make Two Wheeler Insurance Now

So you got a spanking new two wheeler and are very proud while riding it around the city. Since it is a new bike the chances are pretty high that the dealer would have provided you with an insurance. With time the two wheeler insurance landscape has changed a lot. Now one has access to better and more comprehensive products as compared to the past.

One such interesting offering is the multi-year third party car insurance. Insurers are now offering two wheeler insurances for multiple years. The same becomes quite handy if you are someone who doesn’t want to be bugged with renewing insurance on a yearly basis. It also provides you immunity against inflation, as the premium remains the same for the specified number of years. And most importantly it keeps you away from policy lapses. Some insurers also provide considerable discounts on the own damage component.

Why Isn’t Two Wheeler Insurance Plans What You Think It Is?

One of the most common reasons for riders not opting for two wheeler insurance is that they feel they do not need it. Riders feel they ride safely and that insurances are only for rash riders. A two wheeler insurance can do a lot more than merely providing third party cover and cover for damages to your bike. You can buy add-ons to enhance the features or coverage of your policy. For an instance, you can buy an add-on for towing of the bike. Should you get this add-on, never again will you end up paying money from your pockets for towing of your bike in case it breakdowns while riding.

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