The uncertainty in life tells us the importance of having a backup in case of a mishap. With increasing road accidents, having a two-wheeler insurance plan secures your finances from the expenses of accidental damages and enables you to drive legally on Indian roads. But the question of purchasing comprehensive insurance for additional protection always stands. So, apart from the mandatory third-party plan, should you safeguard your vehicle? The comprehensive insurance policy comes to the rescue when your bike incurs damage and loss which isn’t covered by third-party cover. So, let’s look at some factors you should consider while buying vehicle insurance.
5 Things You Should Consider for Protecting Your Bike
Type of Vehicle Insurance
There are two types of two-wheeler insurance plans, third-party and comprehensive policy. Third-party is mandated by law and secures you from damages caused to the third-party. But what if your bike incurred damages? That is not covered by the third-party policy! The comprehensive insurance policy covers natural and man-made calamities, fire, theft, explosion, and much more. So, while you are choosing the type of vehicle insurance to buy, understand your requirements first. Things like the age of your bike, frequency of usage, etc. play a role in deciding what kind of bike insurance you should get.
Number of Add-ons
There are numerous add-ons available that can be combined with your insurance plan to maximise coverage. Some popular add-ons that vehicle owners buy are zero depreciation cover, roadside assistance add-on, engine protect cover, NCB protection cover, and others. The benefits offered by these add-ons are not covered by your insurance and thus, you can enjoy complete protection with such add-ons. Most of the add-ons come at an additional cost which is why it is crucial to purchase the ones that you shall need. Getting all types of add-ons can increase your insurance premium quote and cost you a lot. So, make sure you give it a serious thought by considering your vehicle and then finalise the policy.
IDV of Vehicle
Insured Declared Value or IDV is the current market rate of your bike that the insurer will pay out in case of total damage or theft. It is crucial to have the right IDV for your vehicle as you do not want to compensate for it during a claim. As a higher IDV means a higher insurance premium quote and vice versa, many policyholders might choose a lower IDV for a more affordable premium. But in case your bike gets stolen, the claim amount would be much lower than the value of your vehicle leading to a loss. Thus, ensure to get the right IDV for your bike to obtain the right compensation amount.
Voluntary Deductible
There are two types of deductibles, compulsory and voluntary deductible. You can make out from the name itself that compulsory deductible is mandatory, and you cannot opt-out of it. But you get to pick the voluntary deductible depending on your requirements. Voluntary deductible is a percentage of the claim amount that you can choose to pay before claim settlement. Opting for a higher deductible can lower your premium quote greatly. But if you choose a higher percentage of VD, you will have to pay that at the time of claim, and this would lower your claim amount. Therefore, it is advised to pick an appropriate amount that you can bear every time you file a claim.
Claim Settlement Ratio
Claim Settlement Ratio or CSR is an indicator of the number of claims paid out by a certain insurance provider. It is calculated by taking the total number of claims settled by the insurer against the total number of claims filed in a financial year. This number tells you the probability of the insurer settling your claim at the time of need which is why it is a major deciding factor. Reputed insurance companies with a higher CSR are always preferred by policyholders. You can easily find the CSR of an insurer for a particular financial year on IRDAI’s (Insurance Regulatory and Development Authority) website. So, you can depend on a trustworthy insurer who shall pay out when your loved ones are in need and support them.
Now, you can purchase the most suitable vehicle insurance and have a peace of mind regarding your bike. For an easier claim and renewal process, get ILTakeCare two-wheeler insurance app that manages your insurance requirements. With lucrative features like Instaspect wherein you can do live video inspection of your vehicle, quick details regarding network garages, seamless claim settlement and more, you can carry out all your insurance-related work right from your mobile!
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