Factors To Consider While Buying A Third Party Two Wheeler Insurance

Buying a two-wheeler is a dream for most individuals in our country. They consider all factors – model, mileage, costing, benefits, and even compare the prices offered by different showrooms before deciding. But why? Because buying a two-wheeler is no less than an investment. So why buy a third party two wheeler insurance without considering all factors?

The Indian Motor Vehicles Act, 1988, makes it compulsory for all two-wheeler owners to have third party two wheeler insurance. Its nature protects you from any third-party obligations brought on by accident involving your two-wheeler. These may include bodily injuries, death, or even property damages to a third party.

The extent of compensation for third party destruction of property is capped at Rs. 1 lakh; however, a court of law determines the amount of compensation in third party bodily injury/death. Although two wheeler insurance online purchases are safe and straightforward, you must be cautious. Let’s see some factors you must consider while buying third party two wheeler insurance.

Factors That Will Impact Your Two Wheeler Insurance

1. Coverage

Before you select an insurance policy, decide what kind of coverage you want. There are three different kinds of coverage available concerning bike insurance. They are:

  • Insurance for the third party: Safeguards you from third-party claims in case of accidents
  • Standalone own damage insurance: Safeguards you against your own bike’s damages in case of accidents
  • Comprehensive insurance: Combined package of the two insurance policies mentioned before.

While it is mandatory to have third-party coverage, think through your needs. It is wise to opt for the last option, a comprehensive insurance policy that safeguards you from third-party liabilities and accidental damages.

2. Tenure

1-year insurance policies bring with them the extra hassle of renewals. Therefore, it is wise to opt for a long-term insurance policy that covers you for 2-3 years straight. This may get you discounts on damage premium rates and protect you against the annual rate hike.

3. Ratio of Claim Settlement

The primary reason to buy insurance is to receive aid from the insurer in emergencies like accidents. CSR is the proportion of claims resolved by an insurance company to all claims made within a fiscal year. It reveals how efficiently an insurance company manages claims. The higher the CSR ratio, the better the company will be at settling your claims. Thus, ask about the insurance company’s CSR and choose the one with the highest ratio.

4. Network of Partner Garages

The insurer pays for all the expenses if you get your vehicle repaired in one of its partner garages. Thus, check for the number of partner garages your insurance company has. The more, the merrier.

5. Service & Support

The service of the insurance company can be primarily determined by its clientele. It is natural for an excellent company to have a vast clientele. So, check for the experience of their existing clientele. Furthermore, check if they offer 24/7 assistance because you may need them to step in at any time.

6. Premium Amount

Several factors determine the insurance cost of a two-wheeler. Some of them are:

  • IDV
  • Policy tenure
  • Coverage type
  • No Claim Bonus

Buying a policy shouldn’t be solely based on the cost. It is necessary, so choose the best one that suits your budget.

Wrapping Up

Your two-wheeler is an investment. And thus, it is crucial to get bike insurance. It not only helps you meet legal requirements but also safeguards your financial security in case of an accident. Consequently, ensure there is no confusion regarding the factors above as this might result in a wrong choice, doing you more harm than good.

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