When it comes to safeguarding your two-wheeler, insurance is not just a legal requirement but also a crucial financial shield. However, many bike owners fall into common traps when selecting their two-wheeler insurance policy. These mistakes can lead to inadequate coverage, financial loss, or unnecessary complications during claims. In this article, we will discuss some common mistakes to avoid when choosing two-wheeler insurance, with a focus on ensuring that you get the best possible coverage for your needs.
1. Overlooking the terms and conditions
Insurance policies come with a set of terms and conditions that outline the coverage, exclusions, and claim procedures. Unfortunately, many policyholders skip reading these details, assuming that all policies are more or less the same. This can lead to unpleasant surprises during claim settlement.
Why read the T&Cs?
The terms and conditions of an insurance policy contain crucial information about what is covered and what is not. For instance, some policies might exclude coverage for certain types of damages or have specific conditions for making a claim. Understanding these details helps you avoid situations where your claim is denied due to ignorance of the policy terms.
Tip: Take the time to read the policy document carefully, especially the exclusions and conditions sections. If you have any doubts, do not hesitate to ask your insurer for clarification.
2. Rushing through personal information entry
Another common mistake is entering incorrect or incomplete personal information when purchasing two-wheeler insurance. Even a small typo in your name, address, or vehicle details can lead to significant issues, including the rejection of claims or the invalidation of your policy.
Why accuracy matters?
Insurance policies are legal documents, and any discrepancies in your information can cause complications. For example, if your name is misspelled, it might not match the records at the RTO or with your previous insurer, making it difficult to process claims. Similarly, entering incorrect vehicle details, such as the engine number or chassis number, can lead to delays in claim settlement or even denial of coverage.
Tip: Double-check all the information you provide when filling out the insurance form. Ensure that the details match your official documents, such as your RC book and driving license.
3. Ignoring the No-Claim Bonus (NCB)
The No-Claim Bonus (NCB) is a significant benefit that can lead to substantial savings on your bike insurance premium. It is a reward given by insurance companies for not making any claims during the policy term. However, many policyholders overlook or forget to claim their NCB when renewing their policy or switching insurers.
Why claim your NCB?
The NCB can reduce your premium by up to 50% over time. If you forget to claim it, you could end up paying a higher premium than necessary. Moreover, the NCB is transferable, meaning you can carry it forward even if you switch insurers, as long as you renew your policy within 90 days of the previous policy’s expiry.
Tip: Always check your NCB status before renewing your policy and ensure that it is applied to your premium. If you are switching insurers, inform the new insurer about your NCB to get the applicable discount.
4. Prioritising price over coverage
While it may be tempting to choose the cheapest two-wheeler insurance policy available, this can be a costly mistake in the long run. A low premium often comes with limited coverage, high deductibles, or poor customer service, which can leave you exposed to financial risk.
Why is a cheap policy not always the best option?
Cheap policies may have lower Insured Declared Value (IDV). An IDV in bike insurance is the maximum amount you can claim in case of total loss or theft of your bike. A lower IDV means you will receive less compensation if your bike is stolen or severely damaged. Additionally, such policies might not offer essential add-ons like zero depreciation, roadside assistance, or coverage for accessories, which can be crucial in certain situations.
Tip: Instead of focusing solely on the premium, consider the overall value that the policy offers. Look for comprehensive coverage that includes a reasonable IDV, add-ons that suit your needs, and reliable customer service.
5. Skipping research
One of the most common mistakes that bike owners make when purchasing two-wheeler insurance is failing to conduct thorough research. Many simply opt for the first policy that comes their way, often suggested by a dealer or an acquaintance. However, this approach can lead to inadequate coverage or higher premiums than necessary.
Why is research important?
Researching various insurance providers and their offerings allows you to compare policy features, premiums, and additional benefits. It also helps you understand the market rates and identify any hidden charges or exclusions. By comparing different policies, you can find the one that offers the best value for money while meeting your specific coverage needs.
Tip: Use online comparison tools to evaluate different two-wheeler insurance policies side by side. This will give you a clear picture of what each policy offers and help you make an informed decision.
Choosing the right two-wheeler insurance policy requires careful consideration and attention to detail. By avoiding these common mistakes—such as neglecting research, making errors in personal information, not claiming your NCB, skipping the T&Cs, and opting for the cheapest policy—you can ensure that you get the best possible coverage for your bike. Remember, the two-wheeler insurance policy is not just about saving money; it’s about protecting your valuable asset and ensuring peace of mind on the road.