It is mandatory to buy bike insurance in India. However that is not the only reason why you should get a good plan. There are many advantages of buying bike insurance. But to get the best advantages out of your plan, you need to avoid making some of these common mistakes. Take a look at this article to know what these mistakes are and how you can avoid them to get the most out of your bike insurance policy.
Mistakes to avoid when purchasing a bike insurance plan
Listed below are the most common mistakes people make:
- Not comparing
Bike insurance is not a very expensive form of motor insurance. So people tend to spend very little time when purchasing a plan. They buy the first plan they see. This is a mistake that must be avoided. Spend some timeto compare the various available options. It is very easy to compare and you can do it online in just a few minutes. Comparing the different two-wheeler insurance plans helps you find the best deal at the best rate. It also helps you find the most suitable features and covers and makes the insurance policy work in your favour.
- Opting for the cheapest plan
This is another common mistake that bike insurance seekers make. Unfortunately, many people consider to buy bike insurance only because it is a legal mandate. This makes them choose the cheapest plan. But if you buy the cheapest plan without doing a little research, you may end up with an unsuitable plan. Then at the time of a claim you may find it very frustrating to make payments out of your pocket, simply because the insurance cover is insufficient or redundant for you. So do not settle for the cheapest plan as that may not be the best option for you.
- Incorrect deductible
Every motor insurance plan has the deductible component. As the policyholder, you have to promise to pay a part of the bills at the time of a claim and the insurance provider will pay the balance s. This is known as the deductible. If you opt for a higher deductible, you will have a lower premium to pay. However, at the time of a claim, you will have to make a higher payment too. So examine all the factors, honestly analyse your own driving skills and also the age of the bike before you select the correct deductible for your bike insurance plan.
- Careless about the no claim bonus
Many policyholders are very casual about the NCB and do not bother to check whether or not the bonus has been deducted from the premium. Do not make this mistake as letting go of your NCB can cost you financially. The no claim bonus is a discount you get for not making any claim in a particular policy period. The bonus accumulates with every claim free year. So when you renew your policy, ensure the insurance provider has deducted the correct NCB value from the premium of the current year. You can also transfer your NCB from one insurance provider to the other. So do not let go of it even if you are switching insurance companies.
- Allowing the plan to lapse
This is a really silly mistake that many bike owners commit. You have to be careful to avoid this mistake as a lapsed policy can lead to many unwarranted issues. First and foremost, if you happen to crash your bike or it gets stolen while the policy is lapsed, you will not get a single paisa from your insurance company. This will happen even if the policy stays lapsed for a couple of days! If you are stopped by a traffic cop, you will be penalised for riding your bike without a valid insurance cover. Then, you will have to pay some unnecessary charges and fees to get the plan restored. So avoid these problems by being just a little meticulous about your bike insurance premium payments and renewals and prevent your policy from getting lapsed.
- Failing to select the correct IDV
Insured Declared Value (IDV) is nothing but the maximum sum assured that your insurance company agrees to pay you in case of total loss or theft of your two-wheeler. It is the current market value of your vehicle after deducting the depreciation factor.
Some bike-owners declare an IDV which is lower than the market value. This is because lower the IDV of the bike, lower would be the premium of the two-wheeler insurance too. At the same time, the chances of getting a lower claim amount too is possible in case of an accident. Therefore, it is best to declare the correct IDV.
The bottom line
Many other common mistakes such as not intimating about the claim on time, not getting the correct details of the insured’ss on the RC book and the previous year policy period, not mentioning correct personal details should be avoided. The mistakes listed above are common,s but they are completely avoidable too. So take some time, plan it out and buy your bike insurance plan in a structured way. This will not only help you find the best plan at the most affordable price, it will also provide you with the best possible cover.