One of the simplest ways to protect your bike against losses that occur due to an accident and any liabilities’ arising from it is by purchasing two wheeler insurance. It will not only protect you from unexpected expenses but also help comply with the Motor Vehicles Act of 1988 that states that third-party motor insurance is mandatory in India.
Two wheeler insurance is the ideal solution to meet exceptional costs, which arise due to the damages caused to a motorcycle in any unforeseen accident.
There are generally two types of two wheeler insurance policies.
A comprehensive policy, which provides protection against several risks and damages to the vehicle and its passengers.
A third party liability policy covers only against all the losses and damages caused to the third party.
Following are the five Factors one needs to Consider While Buying a new two wheeler insurance policy.
A number of factors will affect the premium cost. The cubic capacity (CC) of two wheeler’s engine is the prime determinant of the premium. As per the India Motor Tariff, there are three categories: 0-150CC, 150-350C, and 350CC and above. The policy premium depends on the category in which your bike belongs. Higher the engine capacity, the more will be the policy premium. Location is also another important factor that will affect the premium calculation. India is divided into two zones, Zone A and Zone B, depending upon the risk exposed to motor vehicles. Cities under Zone A are the metropolitan cities, thus they attract higher premium cost than the Zone B cities and towns.
Every year that you do not make a claim, you make yourself eligible to obtain a No Claim Bonus (NCB). It refers to the benefits you obtain on your premiums for good driving and zero accident claim record. For the former claim free year, the NCB begins at 20% and for every succeeding claim-free year, the NCB discount rate rises up from 25% to 35% to 45% until it reaches 50%.
Insured Declared Value, also known as IDV, is the current market value of your vehicle. It is the maximum amount that can be claimed through your policy in case of total loss or theft. IDV is calculated by the manufacturer’s listed selling price after depreciation is duly adjusted. IDV decreases as the age of the bike increases.
There are two kinds of plans. Two wheeler insurance 3rd party only policy is a compulsory policy that protects against bodily injuries, death or damage to property of any third party. Personal accident cover is also provided for the vehicle owner. A comprehensive package policy involves a cover for bodily injuries, death or damage to property of any third party as well as damage incurred to your own vehicle.
Utilize the two wheeler insurance premium calculator, which is an online tool that helps to calculate the premium amount payable annually to continue enjoying the benefits of the policy. One can compare quotes from different insurers and determine the best with the help of this tool. It is quick and easy.