Riding a bike is fun. It is one of the most convenient modes of transportation for most people in India, especially for those who live in metropolitan cities. If proper precautions are not taken, riding on busy roads can be dangerous. This is where the importance of buying a comprehensive bike insurance plan is highlighted.
But despite all the knowledge and understanding of bike insurance, people tend to make a few mistakes. In this section, we are discussing some common mistakes people make when buying bike insurance in India.
Common Mistakes Made When Buying Two Wheeler Insurance in India
The following is a list of top three mistakes that people should avoid when buying a comprehensive bike insurance plan –
- Letting the insurance policy lapse
Many people ride their bike despite a lapsed bike insurance policy. While it does not pose threat riders directly, it is still dangerous to ride around the town with an inactive two wheeler insurance plan.
In case you are caught by a traffic police officer, you will have to pay hefty penalties. Moreover, if you meet with an accident, you have to take care of the damage repair expenses from your pocket.
The only way to avoid spending your life savings on penalties and damage repair is to ensure that your bike insurance plan is up to date. If the policy is nearing expiry, make sure you renew the bike insurance plan as soon as possible.
- Not preserving the No Claim Bonus (NCB)
Many people are quite cautious when riding their bike. Hence, there is no claim made on their bike insurance plan by the end of the policy tenure. To reward this act, insurers offer the No Claim Bonus (NCB).
With NCB bonus, you can avail discounts on the premiums of your bike insurance plan during renewal. This is a hard-earned reward and needs to be preserved for it gives discounts on future bike insurance premiums.
So, in the future, if you plan to sell your bike, make sure that you get relevant documents to preserve the NCB. Know that it can be reinstated and transferred to your new bike.
- Not choosing the correct Insured Declared Value (IDV)
The insured declared value or IDV is the maximum sum assured amount agreed by your insurer in the case of a total loss of your bike. In simple words, when you buy a new bike, the IDV is set at the current market value of the vehicle. If you declare a high IDV, you will have to pay higher premiums and vice versa.
Also, many bike owners think that it is best to declare a low IDV so as to pay lower premiums on the bike insurance policy. In case of a total loss of your bike, know that you will be compensated with a lower claim amount.
Therefore, it is advisable to declare the correct IDV value when buying bike insurance in India.
In The End
We understand that buying bike insurance in India can be confusing. To check the affordability of the plans, you can use the bike insurance calculator to determine the premiums charged on the policy. Also, compare different plans online and then choose to buy a policy that best suits your demands.
Smriti Jain is the owner and senior content publisher at Financesmarti. Financesmarti is a website where she shares a lot of useful stuff for the people and business of India. This includes small business ideas and other banking information, as well. Smriti completed her education in science & technology from Delhi University. Smriti usually has interests in digital marketing now, and she has chosen this career for the full-time opportunity. The primary purpose of starting this blog to provide quality information on the banking industry to the people.