The bike insurance policy is a legal document that an insurance provider supplies when you purchase insurance. According to the terms agreed upon, it guarantees financial coverage for any damage or loss to your vehicle in case of unfortunate events like accident, theft, fire, etc. Companies provide the coverage in return for regular premiums that you pay. All the terms are outlined in the policy document, which is legal proof of your policy.
You have to mandatorily buy third-party insurance in India to ply your vehicle. However, comprehensive policies offer greater benefits in terms of coverage. Therefore, knowing what to look for in your bike insurance policy is vital to ensure you get maximum coverage out of your premiums. Read on to know what to look for in the bike insurance policy document when buying a new policy or a used bike.
Things to check in your bike insurance policy
Here are the things to check in your bike insurance policy:
The coverage is the first thing to check in a bike insurance plan. Third-party insurance, which covers damages caused by your vehicle to others in case of an accident, is a legal requirement. In the case of a comprehensive bike insurance policy, you also get protection for your own bike and third-party cover. In case you already have third-party insurance, you can separately purchase an own damage bike insurance policy to cover your own bike. Check if your policy covers accidents and theft, fire, natural disaster, personal damage, and third-party damages.
Comprehensive policies can have several add-ons, like engine-gearbox protection, breakdown assistance, consumable cover, return to invoice cover, zero depreciation cover, etc. Ensure that your policy document mentions all the add-ons clearly, including their terms, inclusions, and exclusions.
IDV stands for Insurance Declared Value, which is basically the actual market value of your bike. Your plan’s premiums for future renewals will depend on the IDV value depreciation. Therefore, ensure that it is clearly mentioned in your insurance policy.
The amount you have to pay at regular intervals to your insurance provider for your insurance cover is the premium. Therefore, the policy document must mention the premium amount, and it is what you have actually paid.
5. Validity of the policy
Insurance policies are valid for a fixed duration, after which you have to renew them to continue the coverage. This duration is the policy validity period. You remain financially and legally liable for accidental damage or theft outside the validity period till you renew your policy. Therefore, your policy document must clearly mention the validity period so that you can renew the plan before it expires.
No Claim Bonus or NCB is a discount that insurance providers offer on your renewal premiums if you raise no claims during the policy validity period. Ensure that the policy document clearly mentions the NCB to keep your future premium calculations accurate.
When buying a bike insurance policy, it is essential that the policy document clearly mentions all of the above. In addition, it should also include the policy number, your personal and bike details, and the contact details of the insurer. If all these are mentioned, your policy document is complete. Your insurance provider will financially protect your bike from loss or damages due to accident, theft, fire, or natural disasters.
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