Top 10 Mistakes to Avoid When You Choose Insurance for Your Two-Wheeler

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Whether you buy a new bike or a second-hand one, the next logical step is to choose the best insurance. And while getting a two wheeler insurance is an easy thing, many people often end up making mistakes that can impact their decision.

Since having insurance is a must-have for all bike owners as per Indian Motor Act, you cannot risk falling into any wrong loopholes. To help you stay on the safer side, here is a list of 10 mistakes you should definitely avoid while buying a two-wheeler insurance.

 But before that, let us first know why you should have a two-wheeler insurance in the first place:

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Why Is Two Wheeler Insurance Important?

Two wheeler insurance offers plenty of benefits, especially in terms of saving time and resources during any unexpected accident. Some of the most important reasons why you should get an insurance policy for your bike are: 

  • It is mandatory to have an insurance policy under the Indian Motor Act. 
  • You can also file a claim if your bike gets damaged during an accident. The insurance will pay for the repair expenses. 
  • Such policies cover you in case of damage to the bike by natural calamities like floods, earthquake, fire, etc

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10 Mistakes To Avoid While Choosing Two-Wheeler Insurance

  • Choosing or Buying Only A Low-Cost Insurance:
  • Research on best insurance policies:
  • Not Choosing the Right IDV:
  • Not Utilising the No-Claim Bonus (NCB):
  • Missing out on Entering Correct Personal Information:
  • Letting Your Bike Insurance Policy Expire:
  • Not Reading Terms and Conditions

1.Forgetting to Transfer the Insurance Policy

Usually when people buy a second-hand two-wheeler, they focus mainly on the price and condition of the vehicle and forget about the insurance.  In this case, the vehicle is not insured and hence, the buyer ends up violating the law. Therefore, when buying a second-hand bike, always remember to transfer the insurance policy or buy a new one.

2. Not Getting an Uninsured Motorist Cover

It is very common that people forget to renew their insurance policy and hence it lapses after some time. To ensure that you stay on the right side of the law, you can buy a third-party cover like an Uninsured Motorist Cover that will cover you when the original cover is no longer valid.

3. Entering Wrong Personal Details

A large number of people in the country fail to get a two-wheeler insurance just because they entered their name or address wrong. So, whenever buying two-wheeler insurance, make sure you double-check the personal details like your name, bike details, and address.

4. Entering Wrong Hypothecation Details

Just like personal details, your hypothecation details are also supposed to be correct. In case you enter the wrong hypothecation details, you will find yourself in a mess when filing the claim.

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5. Not Claiming Your No Claim Bonus

If you are a diligent driver and have avoided any accident, you are most probably going to claim no bike insurance cover the whole year. Insurers reward such drivers by giving them a No Claim Bonus. This claim can be retained and transferred even if you have changed your bike. So, if you happen to have no bike insurance claims, don’t forget to get your no claim bonus.

6. Not Researching Enough for No Claim Bonus

The no claim bonus (NCB) percentage increases when you do not use the insurance claim for a long time. For example, the NCB percentage is 20 for one year and 50 for 5 years. If you claim a higher NCB than what you are supposed to get, the insurer is going to treat you as a fraud, which is the last thing you want. 

7. Selecting the Wrong Insured Declared Value

The Insured Declared Value (IDV) is the sum that the insurer has agreed to reimburse to a policyholder in case of a total loss of the bike. Some policyholders declare the IDV lower than what it actually should be to the same on the annual auto premium. But the problem is, the lower the IDV, the less cover you are going to get. Thus, make sure you check the IDV value before making the purchase. You can use an online bike value calculator to get an estimate of the IDV.

8. Not Informing the Insurance Company on Time

Some insurance companies have made it mandatory to inform them within a window of 24 to 48 hours. To save yourself from any hassle, always inform the insurance company as soon as the loss happens.

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9. Not Renewing the Policy on the Right Time

Always remember the date when your insurance is going to expire. Renew the policy when it is in the grace period or it will lapse. If you don’t want to buy an Uninsured Motorist Cover, you can create an alarm on any digital calendar to remind you of the expiry date.

10. Forgetting to Select the Nominee

If any accident occurs to you, there should be one family member who can get the insurance policy cover benefits. There is no point in getting the insurance policy if your family cannot get the benefits transferred to them in the case of an emergency.

The Takeaway

Done reading? Well, now you know that you do not just need to be careful while buying the bike but also its insurance. Read the above-listed mistakes and take your time to understand the process. 

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