Points To Remember Before Switching Bike Insurance

Imagine that you bought a new water geyser. After working splendidly for 5 months, the geyser malfunctions. Since it is covered under the warranty period, you contact the brand and ask them to send over a technician to inspect the same. However, you are made to wait for prolonged periods of time on customer service calls and the technician fails to arrive as well.

On the other hand, your friend got a water geyser from another brand, and the brand efficiently carried out the repair work when they faced a similar problem. Their water geyser was replaced within 2 days. Seeing this, you decide to switch to the other brand.

Similarly, when you buy an insurance policy for your bike, certain situations may arise wherein you aren’t satisfied with the purchase you have made. This may be because the cover amount isn't enough, or the premiums are too high, or the claims process is exhausting.
 

What can you do in such a case?

See, an insurance policy is basically an agreement between you and the insurance company. You pay the premiums, and they cover you in unfortunate situations. Secondly, a third-party bike insurance policy is mandatory by law in India under the Motor Vehicles Act, 1988. Comprehensive bike insurance is optional but recommended because it covers damages to your own vehicle in addition to third-party liabilities. Hence, it is important that you get a bang for your buck and own a policy that fits your requirements and is easy to manage. If you aren’t happy with your current policy or the insurer, you can simply switch the same.

Let’s have a look at the things you should keep in mind before you make the switch.
 

Reasons for Changing Your Bike Insurance

There may be multiple reasons because of which you may want to change the insurance you already own. These include -

• Insufficient coverage
• The add-ons you want aren’t available
• Higher premium during renewal
• Zero or minimal support during claims
• Unsatisfactory post-sale services
   

Points to Remember Before Changing Your Bike Insurance

• Services
  The post-sales service starts as soon as you make the premium payment. You should ensure that the services provided by the insurer are smooth and easily accessible. For instance, check if you have received the policy document without a lot of to-and-fro, whether you can get in touch with the insurer without spending precious hours on call lines, the roadside assistance services, etc. If you think your current insurer has a LOT of red flags, look for a new one!
   
• Coverage
  Ensure that the coverage of the policy you choose is the apt value for your bike. It depends on the Insured Declared Value (IDV), which represents the maximum sum insured of the vehicle. The IDV is calculated based on the manufacturer’s listed selling price of the vehicle minus depreciation based on the vehicle’s age.
   
• No Claim Bonus (NCB) Transfer
  If you do not make any claims during the policy year, you may receive a No Claim Bonus (NCB), which is a discount on the own-damage premium at the time of renewal.
  When switching insurers during renewal, the NCB can be transferred to the new insurer, provided you submit proof of your previous policy or an NCB certificate issued by your earlier insurer.
   
• Customisation Options
  Bike insurance policies can be customised with certain add-ons that help you widen their coverage. For example, Road Assistance Cover, Engine Protector Cover, Zero Depreciation Cover, etc. These may vary across insurers and products. So, it is important to choose a plan that gives you the add-ons you want.
  For example - Niya is a civil engineer and currently works at a remote location that’s quite far from the city. She travels to the project location on her bike and there have been a few instances of punctured tyres and battery issues. Her current insurer doesn't offer a Roadside Assistance Cover, and since it’s difficult to find a mechanic on her way to work, she decides to change her insurer. The new insurer allows her to customise the policy with a Roadside Assistance Cover, and now she can avail these services whenever she’s in a fix.
   
• Premium
  The premium depends on the IDV and the type of coverage that you have selected. Make sure you do not choose a lower IDV to save up on premiums as this may prove to be troublesome in case of theft or total loss.
  But, on the other hand, you should compare renewal premiums across different insurers, to avoid spending extra money for the same coverage.
  Maintain a balance between both these aspects and purchase a policy with an adequate coverage and affordable premium.
   
• Terms and Conditions
  You should go through and understand the terms and conditions thoroughly, so you don’t face any shocks or surprises if and when you raise a claim. Read all the policy documents and wordings before purchasing it.
   
• Network Garages
  Network garages are the garages that are listed with the insurance company. Insurance companies provide cashless claims only at their network garages, i.e., if you get your vehicle repaired at a network garage and raise a claim for the same, the bills will get settled between the insurance company and the garage.
  When you choose a policy, make sure that the garages near your house or workplace are listed as network garages with the insurer.
   

When Can You Change Your Insurer?

If you feel the need to change your insurer, you can do so -

• During Policy Renewal
  You’re generally required to renew your bike insurance policy on an annual basis. You can change your insurer during the renewal process, if you are unsatisfied with your insurer’s services or find a better deal.

• During The Policy Term
  Policyholders usually switch insurers at the time of policy renewal. At renewal, you can compare insurers and purchase a policy from a different company while transferring applicable benefits such as the No Claim Bonus. If you cancel a policy during the policy term, the insurer may refund the remaining premium according to its cancellation rules, and you will need to buy a new policy separately.

• If The Policy Lapses
  An insurance policy lapses when you fail to pay the premium before the specified due date. If this happens, you can check if there are better plans that are more suited to your needs and change your insurer.

So, we hope this article helped you understand the situations in which you should change your insurer, why you should do so, the things you should keep in mind, and when you can make the switch! It’s important to be covered with a policy that is best suited to what you need, is easily manageable, and gives you no trouble during claims.