Buying a bike can be exciting but choosing bike insurance can be one of the most challenging tasks. It is imperative to realise the importance of good bike insurance. It not only protects your bike from accidents and theft but also offers you peace of mind.
Mistakes to avoid
To ensure a fulfilling and rewarding bike insurance purchase, here is a list of seven mistakes that people end up committing at the time of buying bike insurance.
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Not Taking Third-party Cover
It is a common scenario when your bike is hit in an accident with another vehicle, and you are expected to pay for the damages as well. This is the reason why most policy providers offer third-party bike insurance as well with the two-wheeler. So, do check whether your insurance policy covers third-party insurance or not.
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Failing to Transfer the Insurance Policy in the Name of the New Owner
If you are buying a used or a second-hand two-wheeler, then it is a must for you to transfer all the insurance papers along with the other essential documents in your name. This little carelessness may land you in big legal trouble. So, make sure to transfer the bike insurance from the old owner to the new one.
It is also vital to note that buying a new insurance policy for a second-hand bike may need a bigger sum of money and a lower cover. To prevent the same, ensure you officially transfer the insurance to your name. Also, do not buy an uninsured old bike.
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Not Making Claims on Time
One of the main things to know is that it is important to make your two-wheeler insurance claim on time. Failing to do so can lead to the denial of the claim. Several insurance providers offer a strict time period such as a 24-hour time period or 48-hour time period for you to submit the claim papers, in case of vehicle theft or damage. Sometimes, in a more serious incident, the policyholders are allowed to delay the claim. But to avoid any problems later, it is essential for you to make the claim as soon as possible.
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Providing Incorrect Information
At the time of buying a policy or making the claim, many people make the mistake of mentioning wrong or incorrect information. This results in the rejection of the claim. To make sure that you get an uninterrupted policy benefit, it is a must to furnish the correct information to the provider. Submit your correct name, contact details, vehicle number, policy number, registration number, third-party details, etc.
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Not Paying Timely Premiums
Imagine the time when you land up in an accident and then suddenly realise that your policy has expired, and you will not get the claim for it. Isn’t this disappointing? Many people face the aftereffects of the lapsed policy as they did not pay their premiums on time.
It is crucial for all bike insurance policyholders to pay their dues on time. You must also know that in case you are hit by a driver who does not have a policy cover, then the personal accident cover will save you.
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Not Maintaining NCB
NCB is one of the critical aspects of the two-wheeler insurance policy. If you have been able to avoid the damages to your bike for the entire year, then you can get NCB or no claim bonus. The NCB will provide you with a discounted premium, which is usually 20%. The same increases every year if you do not claim for the vehicle damage.
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Wrong IDV or Insured Declared Value
IDV or Insured Declared Value is another crucial aspect of the bike insurance policy. It determines the amount of claim you can get at the time of total loss of the bike or theft. The IDV is declared when you buy a two-wheeler policy. This amount is a prime determinant when it comes to paying the premium.
The IDV is nothing but the current market price of the two-wheeler. Some people declare low IDV to pay a low premium for their two-wheeler insurance but suffer at the time of claim.
Conclusion
These are the mistakes to avoid while buying third-party bike insurance! To have a successful claim settlement, do not miss collecting the details of the third party such as vehicle number, insurance details, contact number, etc.