Purchasing Bike Insurance: 11 Mistakes You’ll Never Make Again

Purchasing Bike Insurance: you’re sitting on top of the seat, straddling your bike close to your body, it’s a tremendously liberating sensation.

No surprise, bikes are a popular mode of transportation for a large section of our population, and properly so. But keep in mind that riding a two-wheeler may be as much fun as it is hazardous. Even if you make a mistake on your bike, don’t screw up the two-wheeler insurance that should cover you, the accompanying rider, and your bike.

Bikes are exciting; bikes are in their infancy. They not only transport you from one end of town to the other, but they do it in style. Nothing beats the pleasure of zooming about the city (at a fair pace) on a bike and discovering locations on your own after you’ve mastered the skill of riding one.

The Art of Purchasing Bike Insurance

The important word throughout this whole trip, though, is mastering.’ To enjoy your trip safely, you must first learn the art of riding a two-wheeler—as well as the skill of purchasing two-wheeler insurance.

Just like a well-oiled engine provides a smooth bike ride, when you get two-wheeler insurance that meets your needs, you are safeguarding yourself, your pillion rider, and the bike as it should be.

Common Errors Made When Purchasing Two Wheeler Insurance

On that note, did you know that there are at least 11 typical blunders made while purchasing two bike insurance? Here’s a list of all of them. To avoid them, you must first get acquainted with them.

1. Failure to transfer a two-wheeler insurance coverage when purchasing a used two-wheeler

• Buying used two-wheelers at a decent price is a fairly widespread practice in India. One of the most typical errors made with regard to bike insurance is failing to transfer the insurance policy in the aforementioned situations.
• This either leaves you and your bike uninsured or necessitates the purchase of a new policy. We advise you to transfer the current bike insurance coverage plan from the previous bike owner to your name.
• Otherwise, find an insurance provider and purchase a new policy or have an existing one transferred to remain on the right side of the law. To avoid fines, do this within the allowed time frame.

2.   Allowing your policy to expire

• Worryingly, it is also typical to see many bike riders speeding about on their motorcycles with no legitimate coverage due to expiring bike insurance policies.
• You are already breaking the law if you do so, regardless of the most serious ramifications of this matter. – That is, you are vulnerable to any financial devil against which you have no protection in the case of an occurrence.
• What is the exit strategy? Though third-party insurance is required, consider purchasing uninsured motorist coverage if your initial basic two-wheeler insurance has expired.
• This uninsured motorist coverage will protect you and your bike from any financial problems that may arise as a result of an accident.

3.   Failure to keep the No Claim Bonus:

• There will be no bike insurance claim at the end of the year if you have driven properly and avoided any incidents. As a reward for your diligence, your insurer gives a No Claim Bonus, which reduces your premium burden for the next year. This award is also for your low-risk status and for not submitting small claims.
• Here’s how to figure out a two-NCB. wheeler’s Just like with an automobile, all you have to do is look to see whether there were any claims last year and what the NCB was.
• This hard-earned discount is certainly worth preserving since it continues to provide advantages over time.
• If you’ve sold your bike, make sure you have the necessary paperwork to secure your No Claim Bonus. It is yours, not your bike’s, so you may keep it and transfer it to a new pair of wheels that you may buy in the future.
• Consider not filing for every small injury claim, since this may result in the loss of your No Claim Bonus.

Also Read: What’s covered under Bike Insurance and How Much Does It Cost?

4.  Failure to pick the right NCB in accordance with the previous year policy:

• You learned about the significance of the No Claim Bonus discount and the numerous strategies to safeguard it in the preceding point. There is one additional thing to keep in mind concerning this offer.
• Remember to always choose the right No Claim Bonus %. If you pick a greater No Claim Bonus number, you will be committing fraud, which you do not want to do.

5.   Failure to pick the appropriate IDV:

• The Insured Declared Value, or IDV, is the maximum amount guaranteed agreed upon by the insurance provider to be paid to the two-wheeler owner and policyholder in the case of theft or complete loss of the vehicle.
• In other words, while purchasing two-wheeler insurance, the IDV is the vehicle’s estimated current market value. The IDV is calculated using the manufacturer’s current value and depreciation depending on the vehicle’s age. The general rule is that the higher the IDV, the higher the premium, and vice versa.
• Some bike owners believe that it is desirable to report an IDV that is less than the market value. Because the smaller the two-wheeler insurance IDV, the greater the savings on the yearly vehicle rate. However, if an occurrence of this sort occurs, there is a 100 percent likelihood that you will be reimbursed for a reduced claim amount in the event of an accident. So, please try to define the logically accurate IDV.

6.   Not implying a claim on time:

• Always notify your insurance provider or agent as soon as feasible after an accident or loss occurs, or as soon as possible after a loss occurs.
• Most firms have a 24-48-hour window from the time the event occurs to notify you. Respect the regulations and contact the firm or agent as soon as possible.

7.   Policy Expiration Date:

• When it comes to purchasing a new two-wheeler insurance coverage, remembering the correct policy expiration date is crucial. To prevent the insurance from lapsing, always renew it within the grace period. Otherwise, you risk losing a lot of money.

8.   Failure to designate the right insured name in accordance with the RC and previous policy:

• It is essential that you pick the proper insured name as per all records, that is, as per the RC and the prior policy papers, for the legitimate renewal of bike insurance.
• Even though it seems to be a little detail, it is critical that you pay close attention to it, otherwise, the policy will be rendered null and void.

9.   Failure to provide proper personal information:

• When purchasing two-wheeler insurance, neglecting or failing to give any critical personal information would be considered an effort to conduct bike insurance fraud.
• Any claim you submit under these conditions may be legally ignored by the service provider, and you may lose your coverage as well.
• Pay special attention to the information you provide in the personal details box and double-check that it is right.

10. Forgetting to Add a Nominee:

• In the case of an unexpected occurrence, the only way a member of your family may have the policy or benefits transferred to them is if you named them as nominees when you first purchased the two-wheeler insurance.
• Please specify a nominee while purchasing two-wheeler insurance products, keeping that severe rider in mind.

11. Failure to provide accurate hypothecation details:

• As noted in point 9 ‘Failure to provide proper personal data,’ if you provide erroneous hypothecation information while purchasing two-wheeler insurance, you may have problems when filing a claim.
• Please put in the proper hypothecation information immediately from the start to prevent any such problem arising at a later and inconvenient point.
• Given that riding a motorcycle is increasingly a necessity rather than a luxury, you can only imagine the horror of getting caught on the road with no bike insurance.
• Pay close attention while purchasing two-wheeler insurance, and you may rest secure for the rest of the time until your policy is up for renewal the next time.