4 important factors to consider before investing in a two-wheeler insurance policy

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The most convenient way to go around a city is on a two-wheeler. Whether it is a gearless scooter or a geared biked, these compact sized vehicles are easy on the pocket, offer great mileage, and are easy to park anywhere. But if you own a bike, you would know that the Government of India has issued a mandate that states that all vehicle owners must hold a valid insurance policy if they wish to ride on Indian roads. This is as per the Motor Vehicle Act of 1988. But bike insurance should not be purchased just because it is compulsory. There are several other factors to keep in mind before you finalize an insurance policy. Let’s find out what they are.

Knowing about the different types of insurance policies is important:

According to the Motor Vehicle Act, all bike owners need to invest in a third party, limited liability insurance mandatorily. This policy is meant to secure the legal and financial liabilities of a rider if he/she is involved in an accident that injures a third party individual and his vehicle and/or property. But this policy does not offer all round coverage. What you need is a comprehensive two wheeler insurance policy; one which covers you for more than just accidents. Such a policy can cover you for loss or damage of your two-wheeler and protect it against natural calamities and man-made disasters.

Knowing about the different types of add-on riders is also crucial:

A comprehensive vehicle insurance policy also comes with various additional riders. There are various types of add-on riders to choose from. These riders are meant to provide extensive coverage over and above hospitalisation, vehicle damage and loss. Some of the most common add-on riders offered 2 wheeler insurance providers include accessories cover, engine protection, medical cover for personal injuries, medical cover for pillion riders, zero depreciation cover, cashless hospitalisation, return to invoice cover and so on. While you have to pay a separate premium for each add-on cover, you also get maximum protection if you or your bike is involved in an unfortunate incident.

Knowing what is excluded in the insurance policy is just as vital:

The policy document lists out all the circumstances in which coverage may be denied and your claims may be rejected. It is important to understand these exclusions before you purchase the two wheeler insurance policy. For instance, you cannot file a claim for routine wear and tear or tyre damage. You would also not be covered for breakdown of the bike owing to mechanical or electrical failures. Also, if you are involved in an accident caused due to consumption of alcohol, drugs, or other intoxicating substances, your claim is considered invalid.

Knowing how to purchase and where to purchase policies is necessary:

Most people tend to purchase and renew insurance policies through agents or brokers. Others visit the office of the insurance provider to purchase and renew policies. While there is no problem in using either of these routes, you should know that you can purchase and renew insurance online. Online bike insurance purchase and renewals allow you to compare the various insurance providers and you can choose one that offers maximum coverage by charging a smaller premium.

Whether you purchase online two wheeler insurance or through an agent, it is important to keep all these above mentioned factors in mind. Also take into account factors such as premium amount charged, customer service offered and the claim settlement ratio of the insurance provider before finalising one.


Interesting related article: “Types of insurance policies.”