Buying the right two-wheeler insurance policy for your bike can be a quick and cost saving process if you have your facts right. Having bike insurance can help prevent a financial loss in case of an accident and also help cover costs of repair, damage or loss. 

Here are the fundamentals of bike insurance policies :

• Every bike rider and owner must have a  two-wheeler insurance in India under the Motor Vehicles (Amendment) Act, 2019. An uninsured vehicle can attract a fine of upto ₹4000 and even imprisonment of up to 3 years.

• Type of Insurance : There are 2 types of insurance covers available for two-wheelers :

• Third Party Bike Insurance – This is a basic, low premium two wheeler insurance which every bike owner must purchase under law. It covers damages in case of an accident involving a third party only. 

• Comprehensive Bike Insurance – Comprehensive Bike Insurance is an extensive insurance cover which offers Own Damage (OD) liability and natural disaster damage along with third party insurance, add-on covers and benefits such as No Claim Bonus.

• Learning the  Insurance Lingo : Insurance terms and language can be confusing for many of us. Learn a few basic terms before buying insurance.

• Premium : This is the amount you pay to buy and keep active your bike insurance policy. The premium is affected by various factors such as the make and model of your bike, years of use etc. and the rates offered are different across companies.

• Insured Declared Value (IDV) – This is the current market value of your two wheeler and the amount you receive in compensation in case of total loss or damage. IDV decides your premium rate and it reduces every year due to depreciation. Look for an insurance company offering the most correct (neither high nor low) IDV for a fair compensation in case of loss.

• No Claim Bonus (NCB)– This is an amount you receive as bonus for every claim-free, i.e, accident free year. NCB is offered only in a comprehensive two wheeler insurance cover and is availed in the form of a lowered premium upon renewal. NCB is portable and remains intact even when you switch between insurance companies.

• Add-on Covers – These are optional covers in a comprehensive two wheeler insurance policy which extend cover to co-rider and offer features like roadside assistance, zero depreciation etc. to make your bike insurance more substantial.

• Claim Process – Make sure to understand the essentials of the claim process beforehand. This can help get you a fair compensation at the right time in case of an accident.

• Buy Insurance Online : Online two wheeler insurance can be bought within minutes. It is hassle free, safe and comes with benefits like discounted premium rates. With just your mobile number and vehicle registration number, you can get an instant insurance quote. You must compare the policy covers from various insurance companies before buying a comprehensive or third party bike insurance online.

Safety is essential both on and off the road. Read the terms thoroughly before buying two wheeler insurance and get the right policy at the correct price !