Bike Insurance Policy: The number of accidents caused by two wheelers is the highest in India, keeping this in mind, the government has also made strict rules.
We cannot prevent accidents, but we can be prepared for the damage caused by them. At the same time, it is most important to insure the motorcycle against its own damage or third party damage due to accidents. When you buy bike insurance, you should be aware of how an insurance company calculates premiums, as well as a few key things you need to know to make sure you can get the best deal. Which we are going to tell you about here:
Third Party Vs Comprehensive Cover: When you buy a policy, you can opt for third-party bike insurance, which covers third-party liabilities. This insurance is decided by the government and the Insurance Regulatory and Development Authority of India. However, the premium for own damage cover is decided by the insurer. Third-party cover will always be cheaper than comprehensive cover but it will not protect you in case of own loss or theft.
Vehicle Depreciation: When you ride your bike, you obviously go through wear and tear. As a result, its market value decreases. Motor insurance companies have their own methods for calculating the value of a vehicle. Remember that the higher the value of your vehicle, the lower the insurance premium. It works in conjunction with the insured declared value of your vehicle.
Insured Declared Value: The Insured Declared Value or IDV determines the current market value of your vehicle as per the insurance company. This is the maximum amount that the insurance company will provide you in case of a claim. Your premium is calculated directly as a percentage of your IDV. The good thing is that insurance companies also allow you to choose your own IDV which should be within the pre-determined IDV limit. The higher you choose as your IDV, the higher will be your premium.
Location of Insurance: Many people are not aware that your location also affects your insurance. Despite the lakhs of efforts by the authorities, there are some areas where vehicle theft and accident rates are higher than others. Hence, insurance companies charge higher premium amount for vehicles registered in these areas.
Online or Offline Insurance : Years ago people used to approach the insurance agent to get insurance, however now is the era of digitization. Almost all insurance companies provide online insurance, you can get the better option by providing key details of your vehicle. Buying bike insurance online eliminates the commission of the insurance agent and makes the policy affordable for the bike owner.
