When You Master in Buying Bike Insurance: 10 Mistakes to Avoid

buying bike insurance

Owning bikes is a different feeling, especially for those who are passionate about it. Hovering on the seat, straddling the bike gives a feeling of WOO! No wonder, bikes are the most comfortable yet the best preferable mode of commuting to avoid the traffic-packed roads of India. However, riding two-wheeler comes with certain risks as well. There is one death every four minutes in India owing to road accidents, where two-wheelers share 25% of total road accidents [1].

In such a situation, you shouldn’t mess up with your only saviour-Two Wheeler Insurance!

The excitement of riding a bike always comes with a cost. When your prized possession offers you the complete comfort and fun of riding, it is your responsibility to provide her with the much-needed protection. This can be assured only with a bike insurance.

The Trick of Buying Bike Insurance

The entire process depends on the word ‘mastering’. To enjoy a safe ride, you’ll have to master the art of driving a two-wheeler. Similarly, to show the needed care and to assure safety, you will have to master the art of buying two wheeler insurance.

Just as a well-serviced engine ensures a comfortable and smooth ride, when you buy a two-wheeler insurance as per your requirements, it ensures the safety of your bike and the pillion riders by covering you financially.

10 Common Mistakes Committed

In line with that, there are 10 usually made mistakes that need your attention to ensure a safe purchase. Here’s the list:

1. When You Don’t Transfer Two Wheeler Insurance

Buying second-hand bikes at a comparatively lower price is a common practice in India. Here the common mistake one usually does is overlooking to get the bike insurance policy transferred from the name of the previous owner. This leaves your vehicle uninsured or you have to purchase a new one, as it is legally mandatory in India.

You can either transfer the policy to your name after purchasing it or to stay on the right side of the law, buy a new one. You should do this within the given time limit to avoid consequences.

2. Letting your policy expire

Shockingly, it is very common find many bikers whizzing around with a zero insurance cover. They either forget to renew the policy or just ignore it.

Is it the same with you?

If yes then you’re already guilty in the eyes of law. Despite knowing the most important consequence of this, where you being exposed to every financial odd that you have no financial shield against in case of an eventuality.

What is the solution?

Although a third party liability insurance is compulsory by the law, consider buying an Uninsured motorist insurance in case you’re running out of a sufficient insurance coverage. This cover will keep you protected during a financial adversity stemming from an emergency.

3. Not Preserving NCB

If you maintain the record of driving safe and avoid accidents, there will be no insurance claim. In return, the insurer will reward you with No Claim Bonus for being so diligent. NCB lowers the burden of the premium for the subsequent years. This is also offered for your low-risk status and not filling for small claims. The below table shows how NCB is calculated by various motor insurers:

Claim Free Year Bonus (%)
1st claim free year 20%
2nd claim free year 25%
3rd claim free year 35%
4th claim free year 45%
5th claim free year 50%
More than 5th claim free year Depends on the insurer

This hard-earned discount needs to be preserved so that you can reap the benefits over time. In case you’re selling your bike, do remember to get all the documents to protect your earned NCB. No claim Bonus belongs to you, not your bike. You can retain and transfer it to your net set of wheels.

Also, try to avoid filing for minor claims in order to avail maximum numbers of no claim bonus.

4. Not selecting the Correct IDV

IDV or Insured Declared Value is the maximum current market value of the two wheelers, agreed upon by the bike insurance company to be reimbursed to the owner of the bike in case of a claim. The insurer calculates the IDV based on the manufacturer’s current price and the depreciation on bike’s age. The thumb rule here is- the greater the IDV, the higher the premium.

In that case, you might think of declaring lower IDV, because, lower the bike IDV, more you can save on the two wheeler insurance premium. But chances are very high that you will be reimbursed with a lower claim amount in case of an accidental. You should act by the book and declare the correct IDV.

5. Not Informing about Claim on Time

To avail the policy benefits fully, you should intimate about a claim on time. The minimum delay will lead to fast claim settlement. When most insurance companies have a window of 24-48 hours from the time of incident occurred, most of the time, it is observed that people don’t intimate the insurer on time. You should follow the rules by not exceeding the stipulated time limit.

6. Correct Policy Expiry Date

Remembering the policy expiry date is essential. To enjoy policy benefits uninterruptedly, you need to renew the policy on time. However, some insurers offer a grace period to renew the policy in case you skip the date, you should not make this a habit. Else, you will stand without a cover.

7. Mismatched Insured Name as Per the RC and Previous Policy

To renew your bike insurance, it is inevitable that you provide the accurate insured name as per all your Ids- like as mentioned in the RC book or in the previous policy documents.

It may seem a simple pointer, but you should pay attention to it, otherwise, the policy will stand invalid.

8. Incorrect Personal Details

By providing incorrect personal details, you might break the trust of the insurer on you or you might welcome a consequence at the time of claim. The insurer may rate this as bike insurance fraud or deny insuring you. Moreover, denying a claim might cost you a bomb when you need it utmost.

Hence, pay attention to whatever you’re providing in the personal information block and ensure it is correct

9. Not mentioning Your nominee

In case of an unpleasant event, the only way your family member can utilise the policy benefits in your absence is as a nominee. For that, you have to choose the nominee option correct while buying the policy.

Keeping that stringent rider in mind, mention a nominee and let your family members enjoy the benefits in your absence.

10. Not mentioning correct hypothecation details

Similar to the point 9 ‘not mention wrong personal data’, if you mention incorrect hypothecation details, you’re welcoming a trouble to be faced at the time of claim. To avoid any such circumstances, fill in the correct hypothecation details at the time of purchasing a plan.

Summing it Up!

Given that, the usage of two-wheelers is unrestrained, you can hardly afford being caught with an invalid insurance cover by the cop. Since the insurer doesn’t bear a fraud, you should pay attention to these simple but most important aspects when it comes to buying bike insurance. By adhering little punctuality, you can rest assured for the entire policy term.

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