Indians rely greatly on motorbikes for their daily commute and it comes as a no-shocker that India makes up the largest markets for bikes like scooters, mopeds, motorcycles in the world! However, with millions of vehicles on the road, the statistics of bike accidents have been on a steady rise. Listed below are some motorcycle safety tips to keep the danger at bay.
- Wear appropriate gears like a safety helmet.
- Avoid distractions like the use of cell phones during driving, and stay alert at all times.
- Inspect your brakes before you get onto the road.
- Avoid driving on wet roads.
- Abide by traffic rules.
- Ensure you carry your valid driving license and mandatory insurance papers.
Indian law makes it mandatory to have bike insurance, non-compliance to this can lead to legal consequences and you may have to bear monetary penalties. Before you take a plunge into purchasing two-wheeler insurance, we recommend that you compare bike insurance offered by different companies so that you get maximum coverage at a premium that fits your budget. If you are a newbie to the term bike insurance, then let us introduce you to some of the important insurance terminologies so that you are better equipped with knowledge next time around when you decide to renew or purchase new insurance.
1. First Party, Second Party, and Third Party – The first party in the insurance language is the person who owns the bike and is the insurer. Second-party is the insurance company and the third party refers to a person or a property that’s involved in the accident or collision caused by the first party.
2. Cover – The maximum monetary benefit that’s extended by the insurance company when the insurance holder files a claim.
3. Premium – It’s an amount paid by the policyholder to the insurance company for extending the insurance benefits. Premium amount may vary depending on the engine CC of the bike, your geographical location, the model and make of the bike, and so on. You can use an online bike insurance calculator to know the accurate premium amount you need to pay for your bike insurance.
4. Insured Declared Value (IDV) – It’s the market value of your motorbike. So IDV is the maximum amount that the insurance company will compensate if your bike is robbed or it has total damage. Always remember with age the market value of your bike depreciates. IDV also has an impact on your premium amount.
5. No Claim Bonus (NCB) – If you haven’t filed a claim during your policy year, then you become eligible for a percentage of discount on the premium next time when you renew your bike insurance. It’s more like a bonus given for your good driving skills.
6. Depreciation – Depreciation in simple language is the reduced market value of your bike that happens because of wear and tear over some time.
7. Zero Depreciation Cover – This is also called Nil Depreciation cover or Bumper to Bumper plan. It is one of the most preferred add-on covers by bike owners. When you file a claim, your insurance company takes into account the depreciated value of your bike and its parts and this may directly have an impact on the amount of claim that gets approved. When you opt for this cover, you are ensured of a better claim amount after mandatory deductions.
8. Exclusion – Exclusions are all the events that are not worthy enough to be claimed for. So, for example, if the accident happened because you were drunk and driving then your insurance company doesn’t pay for the damage. It’s more like the fine lines that one must read to avoid confusion in the future.
9. Add-on Covers – While stand-alone comprehensive bike insurance provides a lot of benefits, many aspects are not covered in the policy. So add-on covers are the additional benefits that you can purchase along with your bike insurance policy at an added cost to extend full coverage.
The online platform is becoming the preferred choice for everything. From purchasing a new bike online to renewing your two-wheeler insurance online, everything can be finalized in a few taps of your finger!