Bike Insurance

Steps You Need to Follow to Make a Claim

Making a claim involves specific steps. These steps can differ based on the incurred damage type –

How to Choose the Best Two-Wheeler Insurance Policy Online?

Here are a few things you should keep in mind to get the best bike insurance plan for your needs -

1. Figure Out Your Needs
   Evaluate and decide what you actually need from your bike insurance. Is it only third-party coverage? Or do you need comprehensive coverage? It all depends on what you require.

2. Policy Comparison
   Go through and understand different bike insurance policies sold by different insurers. Look at factors like coverage, premiums, available add-ons, reviews, and more.

3. Check if There Are Any Coverage Limits
   Have a look at the coverage limits of the bike insurance plan. This includes third-party limits as well as the maximum sum insured available for your bike. Make sure that the coverage offered matches your needs.

4. Check the Add-on Covers
   Are there any add-ons available with the bike insurance plan? If yes, pick the ones that warrant your needs, like roadside assistance, zero depreciation cover, etc.

5. Look at the Insured Declared Value (IDV)
   The IDV is the maximum amount of money that the insurer will give out if your bike is stolen or declared a total loss. Make sure that the offered IDV is in tune with the current market price of your bike.

6. Be Aware of the Exclusions
   Exclusions are situations that will not be covered by the bike insurance plan, like drunk driving, intentional damage, etc.. You should understand these exclusions properly to avoid any sudden out-of-pocket expenses.

7. Verify the Insurer’s Network Garages
   A network garage offers cashless claim settlement. It’s important that the insurer has a wide network to ensure better accessibility and convenience, especially if there is an emergency.

8. Check if the Plan Offers a No Claim Bonus
   If you haven’t made claims in the past, you should look at bike insurance plans that offer nice No Claim Bonus discounts, which can greatly lower your renewal premiums.

9. Know About the Premiums
   You should compare the premiums charged by insurers and evaluate the value for money you’re getting by considering the coverage and add-ons offered. It’s possible that a slightly larger premium can offer much better coverage.

10. Go Through Reviews & Ratings
    The best way to gauge an insurer’s services and claim settlement journey is by looking at the feedback given by existing customers. You can look at their social media handles, forums, community discussions, and more.

11. Check the Insurer’s Claim Settlement Ratio
    The claim settlement ratio is an important metric that showcases the percentage of claims settled by the insurer. A higher claim settlement ratio is typically a green flag and can display the trustworthiness of the insurer.

12. Evaluate the Insurer’s Customer Service
    You should also understand the quality of the customer service and support offered by the insurer since this will majorly be your point of contact if you have any questions or concerns during your bike insurance journey. It’s important to pick an insurer that provides quick and helpful service.

13. Understand the Renewal Process
    Be aware of the steps involved in renewing the policy. It’s better to go for a policy that has a quick, convenient, and hassle-free renewal process.

14. Read the Fine Print
    Even though it may sound dull, you should most definitely read and understand the T&Cs of the policy. Look at the fine print, inclusions, exclusions, etc. This will help you avoid any nasty surprises in the future.

Add-Ons in a Two-Wheeler Insurance

When it comes to two-wheeler insurance, you have the option to enhance your coverage with various add-ons. These extras serve specific purposes, but it's important to keep in mind that they come with an additional premium.

Let's explore some of the add-ons available for your two-wheeler insurance:

1. Zero Depreciation Cover
   Over time, vehicles naturally lose value due to factors like age and wear and tear. This is known as depreciation. As your two-wheeler ages, its value decreases. When you file a claim with your insurer, they typically factor in this depreciation when calculating the claim amount for damaged parts.
   However, with the zero-depreciation add-on, the insurance company waives off the depreciation when settling your claim. This means you'll receive a higher claim amount.
2. Roadside Assistance Cover
   This add-on provides you with help when your bike breaks down or experiences a mechanical issue, leaving you stranded on the road. Here are the some of the services offered under this add-on –
   • Fuel Supply
     If your bike runs out of fuel with no gas station nearby, you can just contact your insurance company. They will arrange and do the needful to have the fuel delivered to you.
   • Tyre Change Support
     In case of a flat tire, your insurance company will either send a mechanic to replace the tire or tow your bike to the nearest garage if, in case, there is no spare tire available.
   • On-site Minor Repairs
     When your vehicle faces minor mechanical or electrical problems like a faulty spark plug or fuse, the insurer will dispatch a mechanic to fix it right there on the spot, without the need for towing the vehicle.
   • Towing Facility
     If your bike faces significant mechanical or electrical problems that cannot be fixed on the road, your insurer will promptly send a mechanic to your location. They will then tow your bike to a garage for major repairs.
     It is important to note that the specific services included in your roadside assistance cover can vary across insurers.
3. Engine Protector Cover
   Your bike's engine is the most important part of your vehicle and any damage to it can be quite heavy on your wallet. Typically, comprehensive bike insurance does not include engine damage in its coverage. But with engine protector cover, you can shield yourself from damages or losses that happen to your bike's engine due to issues like oil or coolant leaks, water damage, or damage to the engine and gearbox. It may also cover the costs associated with replacing the engine or its components.
4. Consumables Cover
   In general, a standard bike insurance policy does not cover consumables such as nuts, bolts, or oil when processing a claim and such costs have to be borne by you. However, when you opt for consumables cover, the insurer will cover these expenses when settling your claim.
5. Key Protector Cover
   If your keys get lost, damaged, or stolen, the key protector cover steps in to ease your financial burden. It handles the costs of replacing the key and also covers the expenses for replacing or repairing the lockset.
6. Return to Invoice Cover
   Insurance companies generally calculate your vehicle's coverage based on its current market value, known as the Insured Declared Value (IDV). This IDV value considers depreciation, as your bike's value decreases as soon as it leaves the showroom. So, in the unfortunate event of severe damage or theft of your vehicle, you would typically receive the depreciated amount and not the bike's original value.
   However, choosing the return to invoice coverage will enable you to get the complete invoice amount of your motorcycle (original value) in the unfortunate event of theft or a total loss. This option is available for bikes aged between 3-5 years.
7. Personal Accident Cover
   One of the most vital add-ons, the personal accident cover comes in two types –
   • Personal Accident Cover for the Owner-Driver
     This type of cover provides financial protection in case of accidental death or disability. The compensation amount is determined by the policy's stated limit. As per vehicle regulations, all two-wheeler owners are required to have a personal accident cover with a minimum coverage of Rs. 15 lakhs. However, if you already possess a personal accident cover of Rs. 15 lakhs for your current vehicle, there is no need to purchase it separately for your bike.
   • Personal Accident Cover for Passengers
     The personal accident cover for passengers safeguards the pillion rider or any passengers from financial hardships in the event of accidental death or disability. While this cover is not obligatory, it is a wise choice to ensure protection for anyone riding with you.

How to Include Add-Ons to Your Bike Insurance?

Enhancing your insurance coverage through add-ons is a wise move and here's how you can do it –

1. Evaluate Your Current Policy
   You can start by taking a good look at what your current policy already covers. This helps you identify the areas where you might need extra protection.
2. Contact Your Insurance Agent
   If you initially bought your policy through an insurance agent, reach out to them. Let them know which add-ons you are interested in and they will handle the process of adding these to your policy.
3. Visit the Insurer's Website
   If you have purchased your bike insurance online directly from the insurer, you can find a section dedicated to add-ons on their website. Examine the available features and make sure they match your needs.
4. Select Your Add-On
   Simply click on the desired add-on from the list provided on the website. It will automatically become a part of your policy and your premium will be adjusted accordingly.

You should keep in mind that you can add these extra features to your policy when you initially purchase it or during the policy renewal. This is because buying these add-ons in the middle of the policy term may not be possible.

How to Compare Bike Insurance Plans Online?

Comparing bike insurance plans online is one of the best ways to find the perfect coverage for your needs and preferences. Here’s how you can easily compare bike insurance plans online -

1. Visit Comparison Websites
   Go to online bike insurance comparison websites or web aggregator platforms. These websites let you compare different plans at the same time, in the same place.
2. Fill in Your Bike’s Details
   Then, enter information about your two-wheeler, such as the model and model, variant, manufacturing year, registration, etc.
3. Spell Out Your Coverage Needs
   Specify the coverage requirements you have. You will need to decide if you want third-party coverage or comprehensive coverage.
4. Pick Add-ons
   Next, select any add-ons that fit your needs. This may include roadside assistance, accessories coverage, etc.
5. Compare the Premium Rates
   Analyse the premiums charged by different insurers for the same coverage, features, and limits.
6. Understand the Plan’s Limits
   Carefully look at the coverage limit of each plan, like the maximum sum insured offered, third-party limits, etc. Make sure the coverage provided matches what you need.
7. Look at the Features Offered
   Now, compare the features provided under each plan, especially what’s covered and what’s not. Also, understand benefits like the No Claim Bonus and any extra perks.
8. Compare the Insured Declared Value (IDV)
   Evaluate the IDVs offered by different bike insurance plans. Make sure that the IDV is on par with the current retail value of your bike.
9. Check the Costs Associated With Add-ons
   Go through the costs of the add-ons available under each plan. Some bike insurance plans may provide specific add-ons at lower prices or as part of a bundle.
10. Check the Insurers’ Network Garage
    As discussed before, network garages offer you cashless claim settlements. A larger network offers more convenience and seamless processes, which become even more important during emergency situations.
11. Know How Customers Have Rated the Insurers
    Go through the reviews of existing customers of each insurer. This can give you important insights about their services, claim settlement processes, and reliability.
12. Have a Look At the Claim Settlement Ratio
    Check the claim settlement ratio of each insurer. A higher ratio is an indicator of a better history of settling claims and dependability.
13. Go Through the Plans’ T&Cs
    Read the T&Cs of each bike insurance plan to the tiniest detail. It’s important to understand the fine print, what’s covered, what’s not covered, and more.
14. Understand the Online Bike Insurance Renewal Process
    Next, assess how seamless the online renewal process under each plan is. It’s always better to go for a bike insurance plan that has a simple and straightforward renewal process.

Key Considerations When Purchasing Two-Wheeler Insurance

Before you dive into buying your two-wheeler insurance, here are some important factors to keep in mind –

1. Assess Your Needs
   You should first understand your own needs and then decide on the level of coverage you require. You also need to decide whether you want to include any additional features or add-ons in your policy.
2. Third-Party or Comprehensive?
   Once you have decided on your needs, you can then choose between a third-party policy and a comprehensive policy. A third-party policy is a suitable choice if –
   • You don't ride your bike frequently.
   • You are confident in your ability to avoid damaging your two-wheeler.
   • You are looking to keep your insurance premiums low.

   However, in most other cases, a comprehensive policy is the wiser choice as it offers more extensive coverage and better protection for your two-wheeler.

3. Optimal Coverage
   When it comes to your two-wheeler insurance, understanding the Insured Declared Value (IDV) is crucial. This value represents the estimated market worth of your vehicle and the maximum amount your insurer will pay in the event of a claim. So, it is wise to choose a policy with an IDV that adequately covers your bike.
   While selecting a lower IDV might reduce your premiums, it could lead to complications during claims. This can lead to inadequate compensation, especially if the loss or damage exceeds the chosen IDV – for instance, in the case of theft.
4. Tailor Your Coverage
   You also have the flexibility to customise your base two-wheeler insurance policy to suit your exact needs. Additionally, you can enhance your protection with various add-ons such as NCB protector cover, zero depreciation cover, personal accident cover, roadside assistance cover, etc. These add-ons offer an extra layer of protection for your bike.
5. Network Garages
   When it comes to making a claim with your two-wheeler insurance, you have two options – Cashless and Reimbursement. Cashless claims are only available at the insurer's approved network garages. So, when selecting your two-wheeler insurance policy, be sure to check if the network garages are located near your home and workplace.
6. Understand the Terms and Conditions
   Before finalising your insurance choice, carefully review the policy documents and brochures. It is vital to understand the terms and conditions of the policy you intend to purchase, including what is covered and what isn't.
7. Personal Accident Cover
   According to government regulations, it is necessary to have a Personal Accident cover for the owner-driver. Hence, you should make sure that you add this to your policy if it is not included already. Neglecting this requirement may result in claim rejections.