The reasons for buying a two wheeler are many for Indians. They range from necessity to passion to a style statement, and most importantly, affordability. However having a two-wheeler without an Insurance cover is not only illegal but it may also land you in financial difficulties.
The Importance of Two-Wheeler Insurance
Insurance cover for motorcycles and other two-wheelers gives protection for the loss of vehicle, damage, wear and tear from any man-made or calamity reasons. In effect, bike insurance and other 2 wheeler insurance cover can broadly be segregated into two parts: Self-coverage (for the bike & its owner) and Third party cover. This means that you will be covered in case of third party damages as well as critical accidents. By only paying a small premium amount, one not only secures the vehicle but also achieves peace of mind.
In spite of the importance of the two-wheeler insurance, non-renewal of the policies by the bike owners is a major concern. Customers generally consider the policy premium for the first year as an integral part of the purchase cost of the new vehicle, but fail to identify two wheeler insurance renewal payments as a separate investment. The psychology behind non-renewal of the policy can vary from lack of awareness to non-acceptance of additional costs for paying premium where there is no visible instant utility being noticeable.
To reduce instances of two wheelers plying on the road without insurance covers, the government recently enabled a three year comprehensive cover. This comprehensive cover is cheaper than annual policies, and comes with lucrative offers. Nowadays, two-wheeler insurance renewal online makes it seamless and easy for the buyer.
The premium for two wheeler insurance plans depends on factors like the capacity of the engine; the age of the vehicle; geographical zone; type of model and IDV (Insured declared Value).
The IDV for two-wheeler insurance is calculated on the basis of the manufacturer’s listed selling price of the vehicle for the first year, and for subsequent years, it is arrived at after deducting the depreciation for each year.
Comparing Bike Insurance Cover Renewal
The insurance cover for the first year is usually carried by the two-wheeler dealer at the time of the sale, mainly because of the requirements under the law. The purchaser usually accepts the available options from the dealer at the point of purchase.
Individual discretion on policies comes mostly at the time of renewal. The choice is either to go for renewal for the same policy or explore policies of other companies. Here comes the benefit of Online insurance renewal, where the policyholder can assess and compare the cost-benefit aspects of multiple insurance products. One needs to do three simple checks to derive maximum value from the policy.
- Set the correct IDV
- Get the right add-ons
- Understand the fine prints of the policy.
To conclude, the policy should be easy to understand and easy to subscribe to.