It is best to buy a two-wheeler insurance policy whose coverage starts as soon as you buy a new bike. Purchasing two-wheeler insurance involves understanding all of the terms and factors that revolve around it. Rather than buying any policy just because it is mandatory to have an insurance cover, you need to make an informed decision. This ensures that the coverage you choose matches your needs well. In order to choose an appropriate cover, you need to know a few important things.
Aspects that Impact Your Premium
Your premium is affected by the various features of your bike. This goes on to determine the premium you will have to pay for. The cubic capacity is one essential aspect that is taken into consideration. According to India Motor Tariff, there are three categories that exist. As the capacity rises, so does the premium. Also, the city from where you make your purchase is also important. There are two zones. While zone A comes with higher premiums, zone B has a considerably lower rate.
No Claim Bonus
Every year that you do not make a claim, you make yourself eligible to obtain a No Claim Bonus (NCB). It basically refers to the discount you obtain on your premiums for good driving and zero accident claim record. For the former claim free year, the NCB begins at 20%. For every succeeding claim-free year, the NCB discount rate rises up from 25% to 35% to 45% until it touches 50%.
Insured Declared Value
Insured Declared Value, also known as IDV, refers to the value at which the two-wheeler is insured. It maintains this value during the entire policy term. It is calculated by the manufacturer’s listed selling price after depreciation is duly adjusted. Depreciation is altered depending on your bike’s age. You need to select the right IDV.
Type of Plan You Choose
There are two kinds of plans. A liability-only policy is a compulsory third party policy that takes into account bodily injuries and/or death or damage to property of any third party. For the owner driver, a personal accident cover is also provided. A comprehensive plan/Package policy involves a cover for bodily injuries, and/or death or damage to property of any third party as well as damage incurred to your own vehicle.
The Kinds of Coverage that Exist
Two wheeler insurance comes with many kinds of covers. You can choose to opt for a vandalism cover, theft, collision coverage, fire and insurance provided to the pillion rider. Based on your needs and requirements, you can choose the one that is most suitable to you.
A Vehicle Change
When you substitute your two-wheeler with another one, you can carry on with your current plan. However, this can happen only if your premium is adjusted on a pro-rated basis. Also, the value of your new bike should be the same as the old one.
Buying a two wheeler is not a major hurdle and neither is purchasing two-wheeler insurance, provided you know what are you are going for. When you know these basic terms and what they stand for, you can go ahead and buy the most appropriate cover for yourself.