With the rising number of vehicles, accidents and related unfortunate incidents are also increasing. There’s no written rule to the fact that an accident has to happen due to your own negligence, it can be the result of another person’s negligence too. Besides the injuries, there are many other things such as damages to the vehicle and associated stress etc which take a toll on your finances. All these reasons make buying bike insurance a wise choice.
As per the directive of the Supreme Court of India, effective from 1st September 2018, all General Insurance Companies in India must issue a 5-year third-party (TP) policy for new two-wheeler vehicles. Motor vehicles running on roads without valid insurance are liable to attract heavy penalties. That's why; every owner of a two-wheeler is required to hold at least a mandatory third-party liability cover, which is the minimum coverage for all types of motor vehicles in the country.
Coverage against Legal Liabilities
In case there is a third-party involved in an accident with your bike, you are sure to face legal liabilities. The mandated third-party liability only policy protects you against any third-party liability arising as a result of an accident.
Protection against Natural Disasters
Having your bike insured will safeguard you against the expenses incurred as a result of damage sustained by your vehicle in the event of various natural disasters like earthquakes, floods, lightning, storm, etc to name a few.
Protection against Man-made Calamities
Two-wheeler insurance also protects you against various losses and damage as a result of man-made calamities like strikes, riots, burglary, theft, etc.
The comprehensive policy offers complete cover for the two-wheeler as well as the insured. In short, the comprehensive plan will offer coverage for third-party legal liability along with coverage for your injuries and damage to your vehicle or vehicle theft. Many insurance providers also offer a number of optional covers or add-on covers, such as zero depreciation, which can be purchased for covering the cost of consumables. In addition to that, it also offers personal accidental (PA) cover for the owner/rider in case of an accident.
A cashless claim is one of the most important benefits of having two-wheeler insurance. In case of accidental damage to your two-wheeler, you can take it to any of the networks of cashless garages associated with your insurer. The expenses for those repairs will be directly settled with the garage by your insurance provider. You do not have to worry about arranging funds for the repairs.
Personal Accident Cover
Personal accident cover is another regular feature of two-wheeler insurance. It provided coverage for the rider against any injury as a result of an accident. As per the law, this cover is mandatory to have. However, if you already have a personal accident cover from an existing vehicle insurance policy, you do not need to repurchase this cover when you buy a new two-wheeler.
Insurance companies have come up with long-term insurance products. Long-term bike insurance can protect your vehicle for three years. The main benefit of this option is that the premium since it will be fixed for the entire policy term. It will not increase or vary like the yearly renewal option where there are usual price hikes by insurance providers or changes in the tax rates which invariably increase the premiums. In addition, you can just chill for three years without worrying about missing the deadline for yearly policy renewal.
Purchasing a two-wheeler insurance policy and its on-time renewal entitles you for specific discounts like No Claim Bonus (NCB). NCB is an additional bonus percentage that you can earn for each claim-free year of your insurance. Simply put, NCB is a bonus percentage that you can use at the time of your two-wheeler insurance renewal to reduce your Own Damage premium. The higher the NCB, the lower you will have to pay for the premium.
If you have read through the entire article, you now know the benefits of bike insurance. It is important that you do not overlook both buying and renewing your two-wheeler insurance policy. Go for the one that offers the best coverage, at a reasonable price, with a good claim settlement record of the insured.