What Are The Pros And Cons Of Two Wheeler Insurance?

What are the Pros and Cons of Bike Insurance?

Pros: It helps you protect your bike in case it is broken down due to a natural disaster, damages due to traffic, fire, theft, robbing, riots, terrorism, etc.

Cons: a drawback of bike insurance mainly depends on when constantly renewing insurance policy leads to Insufficient Coverage, increased payments.

What is covered under Bike Insurance?

Bike insurance has two sections and the coverage under each section is mentioned below:-

• Third party section: This section covers the bodily injury or death of third parties involved in an accident with the insured bike. In addition to this third-party property damage is also covered. Personal accident cover of up to Rs.15 Lacs is provided to the insured customer in case of death or disability due to an accident involving the insured vehicle.
• Own damage section: This section covers the loss or damage to the bike due to an insured peril. Insured perils under bike insurance include Fire, Natural calamities, riots, strikes, and Malicious damage, accidental damages, etc. These perils are covered under the own damage section of the bike insurance policy. Any damages which are intentional in nature are not covered under the bike insurance policy. This section also includes the add-on covers which can increase the coverage available with the bike insurance policy.

What is IDV in Two Wheeler Insurance?

IDV in two wheeler insurance policy copy is the insured declared value which is the maximum value of the bike considered for the purpose of insurance. It is also the maximum liability of the insurance company in case of any loss or accident. The insured declared value is arrived based on the age of the vehicle, as the depreciation is accounted for each passing year. Higher the IDV, higher would be the liability of the insurance company and higher the premium to be paid by the customer. It is important to ensure that your bike is insured with sufficient IDV which comes handy at the time of loss.

Insured declared value for new vehicle is calculated as 95% of the vehicle ex-showroom price and thereafter the IDV decreases at 10% each year to account for the depreciation of the vehicle.

What to do in case of an accident of my bike?

This is one of the most important things to know before taking an insurance policy and driving the bike. If you have met with an accident while driving the bike it is important to understand how to proceed further. Here is the process to be followed if you are met with an accident:

• For accidents involving third party vehicles, register FIR with the police if there is any causality in the accident.
• Next inform the insurance company about the accident and provide a brief description of the accident and confirm if any third party bodily injury or property damage is there.
• Take the bike to the nearest garage for repair or request for towing assistance from the insurance company.
• Do not try to repair the bike yourself as it may further escalate the damage caused to the bike.
• In the next stage the insurance company will appoint a surveyor to get an estimate of the repair expenses and the claim would be settled.

What are the documents required for making a claim?

There are certain documents which are to be submitted to the insurance company to process your claim. These include:

• Original RC copy in case of Theft claim
• Driving licence of the driver at the time of accident
• Original policy copy
• Duly filled and signed claim form
• Description of the accident
• Cancelled cheque to process the payment
• FIR in case of theft claim
• Details of other vehicles involved or any third party claims which can arise in future.
• An estimate of the vehicle repair cost
• Repair bills and payment receipts.

What is NCB in Two Wheeler Insurance Policy?

NCB is the no claim bonus given to the owner/driver at the time of renewal of bike insurance policy. The no claim bonus is given to those with nil claims reported in the previous years. The no claim bonus increases each claim free year and reaches a maximum of 50% from 0%. The no claim bonus is an extra discount given to the customer on the own damage section of the policy if there are no reported claims in the previous year. The NCB cannot be transferred from one person to another person if the bike is sold.