Here’s how road accidents and two-wheeler insurance go parallel

Addressing those who love zooming on their bikes and getting that ultimate thrill, we bring you some solid tips and tricks regarding your two-wheeler insurance. Whether it those crazy road trips with your bestie or a long drive with someone special, your bike can easily disappoint you in-between.

With a good bike insurance policy, you can tackle those odds that come in your way! Irrespective of your reason to purchase the insurance, getting two wheeler insurance is imperative. Nobody would deny that riding a motorcycle on Indian roads is not safe.

Irrespective of your reason to purchase the insurance, getting bike insurance is imperative. Nobody would deny that riding a motorcycle on Indian roads is not safe.

Let’s see what the statistics say...

In every four minutes, one death takes place on Indian roads. Transport Research wing under the Ministry of Road Transport & Highways (GoI)published a report on road accidents where it was estimated that 4,80,652 accidents on the roads in 2016 led to 1,50,785 deaths. Two-wheelers share 25% of total road crashes that lead to death. Below are some statistics on road accidents in India:

Indian cities with most dangerous roads:

Source: indianexpress.com; Year 2016

We think this is enough to justify why one compulsorily needs two wheeler insurance.

What’s two wheeler insurance?

Two-wheeler insurance is a financial safety net for your prized possession. It covers your bike during unforeseen events by bearing the expenses incurred in repairs, and covers you in case of an accident by paying the hospitalisation expenses. More importantly, it bears third party liability claims that arise out of an accident, be it property damage or death of a third party.

Types of two-wheeler insurance

A plenty of insurance companies have come up with attractive two-wheeler plans that can cover your bike comprehensively. The various types of two-wheeler insurance include:

• Act only policy: Also known as Liability Only or Third Party Insurance policy, this insurance policy is mandatory for every bike owner in India. This policy covers the insured against any third-party liability claims that arise out of the death, property damage or bodily injury to a third party because of an accident. However, this insurance doesn’t cover the insurance owner or his/her vehicle.
• Comprehensive plan: This policy exclusively covers the insured and the vehicle. Starting from liability claim, this policy covers your bike against any natural or man-made damage sustained by it. It covers the insured person by bearing hospitalisation expenses arising out of an accident. The plan coverage includes:

1. Natural disasters such as fire, , flood, earthquake, storm etc.
2. Man-made calamities like a, theft, burglary, terrorist activity, hijacking etc.
3. Accidental expenses arising out of external means
4. During travel by air, rail, road or water.

• Personal accident cover: This cover offers compensation for accidental death and bodily injuries suffered by the insured or rider. Under this plan, the maximum cover offered is up to Rs. 1,00,000and is typically for the people within 18 to 65 years age bracket.By paying an extra premium, one can cover the pillion rider as well.
• Add-on covers:Apart from the above-mentioned basic covers, there are some additional covers that can protect your vehicle exclusively. They are:

1. Zero depreciation cover: At the time of claim, the insurer calculates the value of your vehicle as per its IDV. With Zero Depreciation cover, you can avail the full claimed amount without any deductions.
2. Garage allowance: With this cover, you can claim for a daily allowance foryourcommute in case your vehicle is in thegarage for repairs for a long duration.
3. No claim bonus protector: No Claim Bonus is a reward offered by the insurer when the insured doesn’t file for a single claim in a policy year. For every subsequent No-claim year, the bonus percentage ranges from 20% to 50%. With NCB protector, you can safeguard your earned bonus and use it even after switching the plan or insurer.
4. Roadside assistance: With this cover, the insured can avail roadside assistance if the vehicle breakdowns in-between a journey. It will cover the expenses incurred in towing, minor repairs, flat tyre etc.

In line with getting a cheap and the best insurance

Possibilities are that you have been paying a high premium for your existing bike insurance without even realising it.

Fret not! Even if you have taken your two wheeler insurance, it is never too late to apply these best-kept secrets to lower your insurance premium.

Select your bike carefully

The bike you choose determines the premium rate of your two-wheeler plan. Being simplistic is the best solution for keeping your expenses safe. Insurance for an average motorcycle costs less as such bikes are less risky than sports bikes or other modified versions. The latter comes with a higher premium rate. However, choosing an average bike would be the only solution to this.

Eventually, it’s going to be your call.

Analyse your insurance needs

What’s the cheapest for you may not be the cheapest for others. First, find your actual needs.

How?

Take some time and research! The insurance premium costs depend on several factors such as the location of registration, driving record, theage of the insured, bike model etc. In addition,  insurance needs may differ person to person.

There is a lot of information available online. However, most of it is worthless. You must take some time to sort between what’s important and what’s not.

Installing anti-theft device

If you’re not sure about the safety of your bike, you should keep it in a garage and keep yourself stress-free from the risk of theft.

Comparison goes long way

Don’t just blindly buy a plan by believing in commercials or someone’s suggestions. Like we have already mentioned, your requirement may not be similarto someone else’s. Since the cost and benefits offered by the same two-wheeler insurance plan might fulfil the insurance needs of one individual and fall short for those of another, one must compare two wheeler insurance quotes online. After analysing the results, you can find out what suits your needs the best.

Moreover, it is a buyer’s market where just a little effort from your side will work wonders. You’ll know what is trending and what will give you more value for your money.

Become a member of a club

You’re taking it wrong. We’re not suggesting any random club but Automobile Association of India (AAI). It is an IRDA approved organisation where, by being a member, one can avail 5% discount on the premium of comprehensive insurance.

Nonetheless, it is always better to join a riders’ club if you want to hone your driving skills. Even if it doesn’t offer any discount, you can at least learn advanced driving skills before applying for your DL. It’s better to improve your skills rather than wrecking your bike often. The more you refine your driving skills, the lesser will be the chances of accidents and hence, the claims. This way you can earn No Claim Bonus, which is offered in the form of either an increase in the sum assured or a discount in the premium.

Your deductibles say a lot

Out of the total claim, the part which is to beborne by the insured is called the DEDUCTIBLE. Deductibles can be voluntarily or compulsory. While the compulsory deductible of a plan is finalised by the insurer, the insured has the liberty to choose the voluntary deductibles. Therefore, if you want to lower the own-damage premium, you can go for higher voluntary deductibles.

However, at the time of picking a higher deductible, ensure that you have the means to bear such costs. If you are confident about your driving skills and the chances are slim that you’d apply for a claim, only then should you opt for a higher deductible and enjoy adiscount of premium.In a way, find what works best for you!

It’s your turn now!

Settling for a random plan that sounds cheap is downright foolish. Cheap may not be the best for you. Therefore, before landing on aparticular decision, find out your insurance needs. Also, never compromise on coverage. If you’re getting better coverage by paying a slightly high premium,go for it.