Things to Check in a Two Wheeler Insurance
- Author :
- TATA AIG Team
- Published on :
When you purchase a third-party bike insurance policy, the insurer offers coverage for third-party liabilities arising from an accident involving the insured bike. If you opt for a comprehensive bike insurance policy, then the coverage is extended to the insured vehicle too. Also, the insurer covers damages due to fire, theft, natural disasters, and man-made disasters apart from accidents. With a comprehensive policy, you can purchase add-on covers and choose a voluntary deductible to customise the policy as per your requirements and budget. On the other hand, the insurer specifies certain terms, inclusions, and exclusions of the policy that will be used as guidelines for settling claims in the future.
All this information and details about the insurer and the policyholder are specified in the insurance for 2-wheeler Policy Documents. Hence, it is prudent to go through the documents to assess if everything mentioned there is as per your agreement and understanding with the insurer. Here are 10 things that you must check in bike insurance policy documents.
A policy is identified by a unique Policy Number. When you raise a claim or query in the future, the insurer will ask you for your policy number. Make sure that the documents specify the policy number clearly. Also, note this number and keep it handy for easier interaction with the insurer.
When you apply for insurance for 2-wheeler, you are required to submit your personal details. When you receive the policy documents, make sure that you go through these details and check if they are correct. Any errors might lead to delays in claim settlement in the future.
Details of the Bike
The policy documents should have details of the insured bike like its engine number, chassis number, and registration number. Make sure that you check the correctness of this information in the bike insurance policy documents too.
Check the Bike Insurance Price
When purchasing a two-wheeler insurance plan, do not forget to compare all the plans from different insurance providers. It will help you determine the right two-wheeler insurance price and get the most value-for-money insurance for your 2-wheeler.
Bike Insurance Premium Check
You will receive these documents only after you have paid the premium. Make sure you check the documents and ensure that the premium paid by you is the same as the amount mentioned on the documents. If there is a discrepancy, then you must contact the insurer immediately.
Type of Policy
There are three types of policies available for two-wheelers:
- Third-party liability-only policy
- Standalone Own Damage bike insurance policy
- Comprehensive insurance for 2-wheeler
While a third-party liability-only policy offers coverage for third-party liabilities only caused due to an accident involving the insured bike, the Standalone Own Damage bike insurance policy offers coverage only for damages to the insured bike due to an accident, or disaster (natural or man-made), theft, and fire. The comprehensive policy offers coverage for third-party liabilities and own damage bundled together.
When you receive the policy documents, make sure that the type of coverage purchased by you is specified in them.
Most insurers also offer add-on covers to increase the scope of coverage of an Own Damage or Comprehensive bike insurance policy. At Tata AIG, we offer a range of add-on covers, like zero depreciation, roadside assistance, consumables cover, and many more. If you have chosen add-on covers, then the policy documents must specify them, including the terms and conditions associated with their use.
Insured Declared Value (IDV)
The IDV is the maximum amount the insurer agrees to pay if the insured bike is stolen or damaged beyond repair. The insurer calculates this amount based on the current market value of the bike. The maximum amount of claim settlement will factor in depreciation and deductibles (if any).
The IDV also helps the insurance provider in determining the premium of the two-wheeler insurance plan. Make sure the right IDV is specified on the policy documents as it can impact the premium during bike insurance renewal online.
No Claim Bonus (NCB)
No Claim Bonus is a benefit offered by insurance providers to policyholders that do not file a single claim during a policy term. So, if you have a two-wheeler insurance plan with a policy term of one year and you do not file a single claim during the year, you are eligible for NCB.
Most insurers offer a discount on premiums when you opt for bike insurance renewal online as the NCB benefit. This is a progressive discount that increases with every year that you don’t file a claim and can go up to 50% of the premium over time. Make sure that the policy documents specify your NCB benefits clearly.
This is the validity period of the policy. Most bike insurance policies are short-term policies with a validity period of one year. This means that policyholders are required to go for bike insurance renewal online every year. The policy documents should specify the policy term clearly. Also, make sure that you don’t miss the renewal date, as it can result in the lapse of your bike insurance policy.
In case you miss the renewal date and do not renew the policy within the grace period, you will not be able to leverage the accumulated NCB. As a result, the cost of bike insurance renewal will increase for you.
Details of the Insurer
Lastly, make sure that the policy documents have the contact address, phone number, and email address of the concerned person or department that you can contact for any unresolved queries.
What if there are errors in the policy documents?
If you spot errors in the policy documents, then you need to immediately talk to your insurer to endorse the policy. If the error was made by the insurer, then the changes are usually made without any charges. Make sure that you talk to your insurer about the charges and the resolution time for endorsements.
A bike insurance policy is an important legal document that needs to be present with you at all times. Traffic police can ask any biker to show the bike insurance details. If there are errors in the documents, you ought to get them corrected by initiating the endorsement process.
The ten points mentioned above can help you check the important elements of the policy. However, do not forget to go through the complete set of documents and understand all the terms and conditions to avoid claim rejection in the future. If you wish to go for a bike insurance renewal online, consider Tata AIG. The renewal and insurance buying process are straightforward with us. You can also buy and renew your car insurance policy with Tata AIG.
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.