So you’ve bought your dream two-wheeler and are excited about riding it to your dream destinations. But, at the same time, you are perhaps confused about some other aspects of owning a two-wheeler, one of which is insurance. Perhaps just like you sought the best advice while purchasing your dream machine, you are now hunting to find the right insurance policy for your two-wheeler.
Some will tell you that a third-party policy is all you need, someone others would advocate for a comprehensive plan, while someone whom you often reach out for advice, tells you that a multi-year two-wheeler insurance policy is the best you can buy. But hardly anyone really asks you about your preferences and the biggest factor – your budget. Perhaps this is the reason why no one else can answer your questions and dispel any misconceptions, better than the insurance company itself.
Thanks to technology, an online calculator which factors all your needs and wants and tailors a plan according to your budget and the two-wheeler you own, is now available. The biggest myth this tool dispels is the one where most of us tend to think that two-wheeler insurance is expensive. Besides that, it suggests to you the precise insurance amount you need for the kind of two-wheeler you own and the riding you do. But there’s nothing like the availability of more than one choice and which is why, the online calculator works its intelligence to offer a bouquet of alternatives, where one of them is the best possible solution for your requirement.
TWO-WHEELER INSURANCE AND ITS IMPORTANCE
Before we even begin to tell you about the importance of two-wheeler insurance, you must know that it is illegal to ride a two-wheeler on public roads without a valid two-wheeler insurance policy. That fact aside, around 4.5 lakh road accidents happened last year on Indian roads, with two-wheelers accounting for the largest share among them at 36.5 per cent[1]. Also, as per the latest data, around 2.4 lakh vehicles were stolen in 2019 out of which only around 59,000 were recovered.
There is also no denying the fact that a two-wheeler and its rider are constantly exposed to hazards on the road. Even when at a standstill, the machine is at risk from hazards which are environmental in nature, like floods, storms, rust, etc. The right two-wheeler insurance policy ensures that the rider and the two-wheeler are monetarily covered from any damages which may arise due to the exposure to these constant risks, or other accidents. It’s not only important to evaluate several aspects during the purchase but also wise to review your plan and make any required modifications during two wheeler insurance renewal.
WHICH POLICY SHOULD YOU CHOOSE?
There are two kinds of basic policies one can choose from. One is a two-wheeler insurance third party policy which compensates the loss which might occur to any third-party, in the event of an accident where another party is also involved. On the other hand, a comprehensive two-wheeler insurance policy will also ensure that the cost of repairs for your two-wheeler, as a result of damage which has happened due to your own or someone else’s actions, is also compensated by the insurance provider. Between the two, a comprehensive two-wheeler insurance policy is the one to go for as it ensures peace of mind and almost negligible out-of-pocket expenses in the event of an unforeseen incident which could leave a tiny or a long trail of damage.
HOW TO DECIDE ON COVERAGE, ADD-ONS & FEATURES?
You can make use of the insurance calculators that are available online to determine the premium based on the kind of insurance you need, how much sum assured is optimal and which additional riders you opt for. Bajaj Allianz General Insurance, one of the most trusted insurers in the country, offers an online bike insurance calculator available on their website which can help you make the right choice. This calculator will ask you a few basic questions about your two-wheeler’s make and model, its date of registration, and the city you live in. Based on these and certain other factors, it will offer you a price bracket, where you can choose the maximum or the lowest possible IDV (Insured Declared Value or the maximum amount your insurance company will pay in the event of theft or damage beyond repair) for your two-wheeler. This variability allows you to select an IDV which is calculated real-time and is closer to your budget. This is the primary factor which determines the amount you pay as an annual premium towards the policy.
In the case of a premium one pays for a comprehensive policy for a new two-wheeler, the own-damage part is generally covered for a year and any third party is covered for multiple years. This is variable and differs according to the insurance company you choose. Once you have decided on the IDV value, instead of making a choice on your behalf, the online calculator offers the option of including a personal accident cover for unnamed persons, where you can choose the amount which will be compensated.
Coming to add-ons, the calculator offered by Bajaj Allianz allows an individual to pick from additional options. Some of the add-ons include the assurance of 24×7 on-road breakdown assistance, a depreciation shield which excludes the depreciation cost of your two-wheeler when you file a claim, an engine protector shield which covers any damage which occurs to the engine due to oil leakage or ingress of water, and a consumables cover which takes care of the cost of consumables like engine oil, coolant, gearbox oil, etc. The cost of these is not covered by a regular two-wheeler insurance policy in the event of repairs which arise due to an accident.
Once all these options have been reviewed and selected based on your requirements, the calculator displays the amount you need to pay online. Once you do that, the policy is issued and your two-wheeler is covered from the time and date mentioned in the document.
To sum it up, a valid insurance policy is like a guardian angel which rides with you and your two-wheeler to protect you both in the event of an unforeseen incident. Although the damage it covers is in monetary terms, it takes away a lot of stress and financial burden in a post-incident situation.