There are several factors that play a crucial role in deciding your two wheeler premium amount. While most of the factors remain the same irrespective of the insurance provider, some are different across multiple insurance service providers.
However, in the process of understanding these determinants, one may come across certain beliefs about two wheeler insurance, which is nothing but a myth that needs to be decoded. In this post, we have tried to cover some of the popular myths that can help you to differentiate between the fact and the fiction.
Myths surrounding two-wheeler insurance policy
Misconception 1- Your private insurance policy will cover both personal and commercial use of two wheeler
Your private bike insurance will cover only personal use and not commercial. If you use your bike for commercial purpose, you will need to carry a passenger carrying vehicle insurance or goods carrying vehicle insurance.
Misconception 2- The pillion rider too is automatically covered under an insurance
Truth – Pillions riders are not covered automatically
Co-passengers aren’t automatically covered under an insurance coverage. This means that when a bike meets with an accident, the pillion rider may not be able to claim for expenses on his/ her hospitalization costs due to bodily injury. However, by opting for an add-on of personal accident cover, this issue can be resolved with ease.
Misconception 3- Your premium depends upon the credit score
Truth – Premium does not depend upon your credit score
Many car owners feel the maintaining a good credit score is essential to bring down the premium on car insurance. However this is not entirely true. With so many variables coming into the picture to calculate premium – (make, model of car, IDV, voluntary access, city/location, etc.), a good credit score is generally not a criteria. So even car owners with a not so good credit score have managed to get a good premium rate on insurance if they were able to score heavily on these other variables.
Misconception 4- I am taking insurance only for abiding by law, hence basic coverage is sufficient
Truth – It is not sufficient to simply opt for third party insurance
Let’s decode this myth. Having a minimum amount is not sufficient because any untoward incident like accident can cost you more than you may think of. So if you are thinking of carrying only third party liability, we suggest you go one step ahead and opt for a comprehensive policy instead. This way, your own damage and hospitalization costs too would be included in the coverage in case of an unfortunate accident.
Misconception 5- I can cancel my bike insurance at any time
Truth – True but with certain caveats
Many people believe that the two-wheeler insurance policy can be stopped or cancelled at any time. Though this is true it holds certain implications which you need to be aware of. You cannot file for a claim 30 days prior to the expiry date. For cancellation you may also be levied additional cancellation charges/ fees.
Additionally, remember that if you do not have an active and valid insurance, you cannot ply the bike on Indian roads
Conclusion
These myths are commonly hitting the minds of the two-wheeler users. So, let’s just clear our minds and buy a policy without any preconceived notions or myths.