Motorcycle Insurance Secrets That You Shouldn’t Miss

A bike insurance bought by your parents generally meant accepting the default insurance cover offered by the dealer. But that is no longer the case. The digital revolution in the country has made businesses go online including insurance houses that sell bike insurance plans.

In today’s time, buying the dealer suggested policy is one way, but you can also opt for an insurance cover of your choice. You are no longer restricted to a couple of options. In fact, there are a plethora of insurance plans to choose from depending on your requirement.

Since the Motor Vehicles Act makes it mandatory to buy an insurance cover for all vehicles registered in the country, you cannot skip this requirement as it puts you on the wrong side of the law. Buying a two wheeler insurance policy online helps eliminate any friction to simplify the process by helping you select the exact choice of plan — all at the convenience of your home. * Standard T&C Apply

This article describes some lesser known motor insurance secrets that can help to make you an informed buyer. Let’s have a look:

  • Your insurance claim history impacts the premium

A bike insurance policy is generally bought with the intention of seeking compensation for any situations that might require repairs to your vehicle and even for legal compliance. But that being said, it isn’t advisable to raise frequent insurance claims. Making repeated insurance claims will classify you as a risky policyholder and eventually impact the premium calculation.

On the contrary, if you do not raise frequent claims for repairs, the insurance companies offer a no-claim bonus or NCB which is a concession in your renewal premium. This markdown to the renewal of comprehensive policy is a sort of reward for being a responsible rider. *You can visit the official website of IRDAI for further details.

  • Insurance policies offer coverage for the entire invoice value of your vehicle

While it may come as a surprise, comprehensive policies with a return-to-invoice (RTI) add-on reimburses the invoice value of your vehicle in the unfortunate event of damage beyond repair or theft. However, you must remember that this add-on is in addition to your existing coverage and thus, increases the overall premium amount. Another consideration to remember is that such RTI cover is available only for vehicles that are not older than five years.

  • Cashless claims aren’t entirely cashless

This might be a bummer at first, but every bike insurance policy has a compulsory deductible that is required to be paid by the policyholder before the insurance coverage kicks in. This is the case for cashless claims as well as reimbursement claims. Thus, depending on your policy terms regarding deductibles, you might be required to pay for the deductibles at first and only then your cashless policy kicks in.

  • You can change your insurance company without losing accumulated benefits

As described above, the no-claim bonus is a concession offered by the insurer at the time of bike insurance renewal for not making any claims during the previous policy period. These NCB benefits are specified by the regulatory body, IRDAI, and are available for all comprehensive insurance plans. So, if you have a two wheeler insurance third party plan, you will not be able to take advantage of this. *

* Standard T&C Apply

When changing your insurance company, all you need to do is provide a NCB transfer certificate from your existing insurer to your new insurance company and any accumulated NCB benefits will be carried forward.

*You can visit the official website of IRDAI for further details.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.