Two-wheelers are among the most preferred modes of transport in India. Their popularity as a preferred commute option could be gauged from the fact that in 2019, two-wheeler sales in India reached an all-time high of over 21 million units. Moreover, despite the COVID crisis and the ensuing lockdown which dampened the consumer spirit in the country, over 17 million two-wheelers were sold in 2020 till October^[1]. And with top-six auto manufacturing firms posting a 16 per cent spike in sales, we might as well see the sales crossing the last year’s figure despite the COVID crisis^[2].

This surge in two-wheeler sales may partly be due to the fact that while people have to get back to their daily lives with regular commute to and from work, they do not prefer to use public transport and prefer to commute using their own vehicles to avoid the risk of contagion in crowded public spaces. Nevertheless, two-wheelers have been popular in India even before the crisis due to their multi-dimensional appeal of affordability, efficiency in congested roads and lower maintenance costs.

Menace of uninsured two-wheelers

However, it is also a matter of the fact that a large number of two-wheelers remain uninsured. According to a General Insurance Council of India (GIC), almost 60 per cent of motor vehicles in India do not have a valid vehicle insurance and most of these are motorcycles and scooters. And this huge proportion of uninsured two-wheelers becomes an even bigger problem when one takes into account the fact that over 5 lakh road accidents get reported in India every year involving over 1.5 lakh deaths. So, it is crucial to have the right kind of protection when you go out on the road on your two-wheeler. And this protection not only includes the right protective gear, but also a comprehensive bike insurance policy that protects you financially if any mishap happens.

A comprehensive bike insurance plan not only secures the vehicle on the road, but it also protects it from theft and damage due to natural calamities, vandalism and other such events. Moreover, riding without vehicle insurance is not only inadvisable, but also illegal in India. To tackle the menace of uninsured vehicles plying on the roads, the government has also amended the Motor Vehicles Act, making laws more stringent for offenders. Under the new laws, there are harsher punishments and steeper fines for any violations. And if anyone is caught riding their two-wheeler without a valid insurance, they could be fined Rs 2,000 or even face imprisonment up to three months.

Why you should renew your bike insurance on time

• Avoid Penalties- One of the major advantages of having two wheeler insurance is that one can avoid the steep penalties under the new Motor Vehicles Act.

• Financial protection- If you unfortunately meet with an accident and your vehicle is damaged, you do not need to worry about the repair cost as the insurance would take care of it. Not only in case of accidents, you can claim the insured amount also in case of damage caused due to natural calamities, and even theft of your vehicle.

• Keep NCB Active- If the two-wheeler insurance policy is renewed on time, then you can continue to enjoy the no claim bonus (NCB) benefit -- a type of incremental bonus offered by the insurance companies that reduces the amount of premium for the policy when you renew on time and when you have not made any claim in the last policy period.

Avoid Penalties- One of the major advantages of having two wheeler insurance is that one can avoid the steep penalties under the new Motor Vehicles Act.

Financial protection- If you unfortunately meet with an accident and your vehicle is damaged, you do not need to worry about the repair cost as the insurance would take care of it. Not only in case of accidents, you can claim the insured amount also in case of damage caused due to natural calamities, and even theft of your vehicle.

Keep NCB Active- If the two-wheeler insurance policy is renewed on time, then you can continue to enjoy the no claim bonus (NCB) benefit -- a type of incremental bonus offered by the insurance companies that reduces the amount of premium for the policy when you renew on time and when you have not made any claim in the last policy period.

Things to keep in mind

• Coverage: Before purchasing the two-wheeler insurance, you must evaluate the coverage that you need. There are essentially two basic types of covers -- comprehensive coverage and third party insurance for bike . As the name suggests, the former covers third-party legal liabilities only whereas a comprehensive plan offers a complete cover package including the third party liabilities, a personal accident cover, coverage against damage to the vehicle, and also coverage against theft. If you can afford it, it is always wise to go for comprehensive policy instead of the third-party as one will get covered for their own losses as well.

  While purchasing the policy, you must remember that the right choice is based on the coverage, and not on the price. While price is important, you must not compromise with the coverage to get an attractive price.

• Understand IDV: Before buying a policy, you must understand the concept of IDV, or Insured Declared Value. IDV is the current valuation of your two-wheeler in the market. As years go on, depreciation of the two-wheeler is factored in and the IDV is calculated accordingly. It decreases over the years and thus also results in reducing premium. However, you must make sure the IDV is not less than the actual market value of your vehicle at any given time. Because in such a case, you might be able to save some money in the form of reduced premium, but it also reduces the insured value that you may be able to claim in case of any mishap.

• Riders: There are many policies available in the market which let the policyholder customize them to suit their specific needs using a variety of riders that are available.

• Renew on time: The biggest mistake many people make is letting their policy lapse. You must avoid that at any cost as this not only leaves you unprotected, but it also hurts you financially by increasing your policy’s premium and also voiding the no-claim-bonus that you may be able to avail at timely renewal.

• Insurer’s reputation: While you may have done all the homework, checked all the boxes and chosen the right insurance plan for your two-wheeler, if your claim is not settled without any trouble, then it may all be in vain. And this is where the importance of choosing the right insurer comes in. You must choose an insurer who has a good reputation of settling claims on time and without much fuss. It is also crucial to have the right insurer while making online payments as your credit or debit card details may be compromised.

Coverage: Before purchasing the two-wheeler insurance, you must evaluate the coverage that you need. There are essentially two basic types of covers -- comprehensive coverage and third party insurance for bike . As the name suggests, the former covers third-party legal liabilities only whereas a comprehensive plan offers a complete cover package including the third party liabilities, a personal accident cover, coverage against damage to the vehicle, and also coverage against theft. If you can afford it, it is always wise to go for comprehensive policy instead of the third-party as one will get covered for their own losses as well.

While purchasing the policy, you must remember that the right choice is based on the coverage, and not on the price. While price is important, you must not compromise with the coverage to get an attractive price.

Understand IDV: Before buying a policy, you must understand the concept of IDV, or Insured Declared Value. IDV is the current valuation of your two-wheeler in the market. As years go on, depreciation of the two-wheeler is factored in and the IDV is calculated accordingly. It decreases over the years and thus also results in reducing premium. However, you must make sure the IDV is not less than the actual market value of your vehicle at any given time. Because in such a case, you might be able to save some money in the form of reduced premium, but it also reduces the insured value that you may be able to claim in case of any mishap.

Riders: There are many policies available in the market which let the policyholder customize them to suit their specific needs using a variety of riders that are available.

Renew on time: The biggest mistake many people make is letting their policy lapse. You must avoid that at any cost as this not only leaves you unprotected, but it also hurts you financially by increasing your policy’s premium and also voiding the no-claim-bonus that you may be able to avail at timely renewal.

Insurer’s reputation: While you may have done all the homework, checked all the boxes and chosen the right insurance plan for your two-wheeler, if your claim is not settled without any trouble, then it may all be in vain. And this is where the importance of choosing the right insurer comes in. You must choose an insurer who has a good reputation of settling claims on time and without much fuss. It is also crucial to have the right insurer while making online payments as your credit or debit card details may be compromised.

The simplest way to do this is to choose industry leaders like Bajaj Allianz General Insurance. With bike insurance policies by Bajaj Allianz General Insurance, you could go with a personal accident cover rider. You could also cover any additional fitment that you may have installed on your bike. Moreover, Bajaj Allianz General Insurance also offers riders like engine protection cover and depreciation shield, which reduces your expenses by excluding the depreciation cost of your vehicle while filing a claim.

With Bajaj Allianz, you also get the comfort of buying your vehicle insurance online with just a few clicks in a seamless, fast and convenient fashion. Just fill the required details, pay the premium amount and voila! You are done. This also goes for insurance renewal. Bajaj Allianz also allows you to transfer up to 50 per cent of the no-claim-bonus from your previous policy with a different insurer when you choose to get insured with them.

It’s best to be safe than sorry. You may follow the rules and take all precautions, but accidents by nature are unpredictable. An insurance cover protects you from situations beyond your control. Be a smart buyer and get complete coverage for yourself and your two-wheeler.

Source:

[1] https://www.statista.com/statistics/318023/two-wheeler-sales-in-india/

[2] https://www.business-standard.com/article/companies/diwali-props-up-two-wheeler-sales-in-november-top-six-firms-post-16-spike-120120101286_1.html