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Bike Insurance - Common Questions You Need To Know!

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Published on January 31, 2022. EST READ TIME: 3 minutes

As you buy a new two-wheeler, you need to buy a bike insurance policy as well. The Motor Vehicles Act of 1988 even makes it mandatory for every vehicle to own a third-party insurance policy. A third party insurance policy guarantees that any third-party property or vehicle damaged by your car will be given coverage by the insurer. However, a comprehensive bike insurance plan is recommended for all two-wheelers. A comprehensive package not only offers third-party liability coverage but also coverage against accidents.

Here are some questions that arise while buying a bike insurance policy.

What is the value of my two wheeler and how is it determined?

The value of your two wheeler is very important for determining the premium amount you pay for your insurance. Here, it is important to mention that this isn’t the value at which you bought your bike. Instead, it is the value of your bike at the current day. This is known as the Insured Declared Value (IDV).

To understand IDV, let us take an example. Suppose you bought your new bike for Rs. 80,000. So in the beginning the insured value of your bike will be Rs. 80,000. But as time goes, your two wheeler will depreciate. Hence, its market value will also go down. The depreciation rate usually depends on the number of years you’ve used the vehicle.

What forms of coverage are mandatory?

According to the Motor Vehicles Act of 1988, having a third party liability coverage is mandatory. A third party, in this case, is someone other than the insurer and the insured. So in case you injure a third party, cause damage to their vehicle or property with the insured car, you will be covered against claims of damage or loss by the third party.

What optional coverage is available for my two wheeler?

Other than a basic third party liability coverage, you can also get coverage for the following:

1. Losses caused due to natural and man-made calamities

2. Losses caused due to theft

3. Losses caused due to fire and explosion

4. Damage to your own bike due to an accident

How can I get the best rate for my two wheeler insurance?

There are many two wheeler insurance plans available online. You can compare the different plans, find the best deal and buy one online.

What is Deductible? Will it affect my coverage/premium?

Deductible is the amount of money that you need to pay in order to get a claim settled. Deductibles can be compulsory or voluntary. Voluntary deductibles can reduce your premium amount, hence reduce the cost of your coverage.

What are the major inclusions & exclusions of my coverage? Inclusions and Exclusions

Here are the major inclusions of a comprehensive bike insurance plan:

1. Any damage caused due to natural or man-made calamities

2. Any damage caused due to accidents

3. Any damage caused due to fire and explosions

4. Third party liability coverage

Here are the major exclusions of a comprehensive bike insurance plan:

1. Any damage due to depreciation is not covered by insurance plans.

2. Mechanical or electrical breakdown is not covered as well.

3. Damage while driving illegally

What if there are any incorrect details printed on the policy? What is the process for recording such changes?

You can contact a customer care executive of the insurance company. The executive will guide you on the process.

How can I make a claim?

Making a claim on HDFC ERGO is easy.

1. Contact customer care.

2. Provide your bike registration number and insurance policy details.

3. Give the details of the accident.

4. After registering the claim, the insurance company will send a surveyor to verify your claim.

5. Your claim will be settled in a cashless manner or you will be reimbursed the amount needed to repair your bike.

If any other vehicle dashes my two wheeler, how do I claim its third-party liability insurance?

In case of a third party damaging your vehicle, you have to file an FIR. Take pictures of the accident, including any injuries. Obtain third party insurance details of the vehicle that bumped into your bike. File a case in the tribunal court through a motor claims lawyer. The court will then decide if the claim is legitimate.

Why should I buy two wheeler insurance online?

A lot of insurance providers including HDFC ERGO offer insurance plans online. It is definitely a good idea to buy one online.

Conclusion

With all your questions answered, you can now enjoy the benefits of a bike insurance plan.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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