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India has a massive market for two-wheelers, crossing an annual threshold of an average of 17 million units sold for the last few years. They are preferred as a popular mode of transportation because of their convenience, high fuel efficiency, and relatively low prices when compared to full-sized automobiles.
However, motorbikes are also inherently less secure than cars, resulting in a substantial number of road accidents across the country every year. Accidents involving two-wheelers caused 44,000 deaths in 2016 alone, causing the introduction of various safety measures for the vehicles and their riders.
Two wheeler insurance policy is one such safety measure to prevent accidents and unwanted situations. It is mandated as per the Motor Vehicles Act of 1988; every bike owner should have valid insurance cover for their vehicle if they intend to use it for personal and commercial use.
There are many insurance providers today offering two wheeler insurance policies for bike owners across the country. One can choose from a wide range of options, catering to their unique safety and insurance coverage requirement.
Selecting the best insurance policy for two-wheelers
Most bike insurance companies in India, including NBFCs like Bajaj Finserv, offer two different types of insurance policies for prospective customers: comprehensive and liability only insurance.
Purchase of a particular insurance policy for two-wheelers should be a well-researched decision after evaluating all the requirements as well as the features and benefits that a company has to offer. It is important to know about these policies and what they have to offer before selecting a particular one.
- Liability only – These insurance policies protect against any financial setback if the insured vehicle damages someone else’s property. These can be third party vehicle damage, injury, or even death. However, third party bike insurance policy does not protect against any financial loss of the insured bike or its rider.
- Comprehensive – Comprehensive insurance policies protect against financial loss witnessed after an accident, damage to the vehicle, along with any third-party liability caused by the insured. Its extensive coverage makes it one of the most preferred motorcycle insurance policies in India.
Selecting between liability only and comprehensive insurance policies is the first step for choosing the ideal insurance policy for a bike owner. One should also carefully consider the following aspects.
- Coverage requirement – It is recommended to assess one’s budget and requirement before selecting on a particular insurance policy. It should be considered based on the individual’s usage, existing liabilities, and expenditure.
- Premium amount – Different bike insurance companies in India might charge different premiums based on their policies. These can also vary depending on the engine capacity, age, and condition of the vehicle, as well as the riding history of the owner. It is necessary to consider the premium amount to find the best vehicle insurance policy according to one’s budget.
- Claim settlement ratio – Another important aspect one should consider the claim settlement rate of an insurer. It represents the number of successful claim settlements against a total number of applications received. A high claim settlement rate indicates a higher chance of availing their bike insurance quickly and with minimum hassle.
- Terms and conditions – It is important to carefully go through the terms and conditions mentioned in the policy papers before selecting a particular insurance plan. It carries all the relevant details, including scenarios that might be excluded from the policy’s coverage.
Every vehicle owner should carefully go through the aspects mentioned above and select a bike insurance company in India that meets all their unique requirements. Insufficient coverage might cause severe financial issues at times of an emergency.
