Risk is a part and parcel of life. Every involuntary or voluntary activity, right from breathing to mountain-climbing, involves an inherent risk to your life. You can die by inhaling poisonous fumes or a small slip can make you fall and lose your life.
Going by the saying – “smooth roads don’t make skilful drivers”, you know there are going to be a lot of hurdles in the journey of your life. Likewise, there will be a lot of bumps, and crevices on the road you take while riding your favorite bike too.
If you’re planning to buy a bike, don’t forget to include a bike insurance policy in your plan. Bike insurance is your saviour if anything goes wrong, be it an accident that causes damage to your bike or you; or damage/loss of someone else’s life, vehicle and property.
What is a Bike Insurance Plan and How Does it Work?
What is it: A bike insurance plan is a smart contingency plan, made in advance, for the risks you can’t foresee while buying a bike. In case you’re a novice in bike-riding or your driving skills aren’t very good, you could risk causing harm to another person or vehicle on the road. The Indian Motor Vehicles Act, 1988 mandates every vehicle owner to have a mandatory third-party liability insurance to ply their vehicle on Indian roads.
If you meet with an accident on the road and cause serious injuries to a person driving another bike or someone walking on the road, you have to pay for their hospital expenses according to the law in the absence of proper vehicle insurance.
The impact: If you’ve not bought an insurance cover for your bike, you have to shell out money from your monthly savings. This can jeopardize your personal plans. You have to part with a portion of the money kept aside for your child’s education, marriage, or your own health expenses.
Why let yourself and your family suffer because of an unforeseen mishap? Nobody is an oracle who can predict what’s going to happen when you step out to drive your bike on the road. But, being proactive and buying a bike insurance, that sets you free from the worries of such unforeseen events, is indeed a smart move.
Comprehensive bike insurance plan: If you aren’t great at driving and meet with an unfortunate accident, a comprehensive bike insurance saves your family from shouldering the financial burden of your hospital expenses and medications. A comprehensive bike insurance offers security not just against loss of life but thefts too. A newly bought bike has all eyes set upon itself. If you think your newly bought Harley Davidson and Ninja is safe from the envious eyes of onlookers, you are wrong.
Even your neighbor or a friend you trusted so much may fall into the temptation of stealing your bike. So, beware! Safeguard your bike from thieves you never suspected could lay hands on your prized possession.
Many people get lured by cheap bike insurance policies because of the low premium they are required to pay. But, an insurance policy with low premium prices is not always the best one.
How to Turn your Bike Insurance Plan from Zero to Hero?
Don’t just buy any bike insurance plan; choose a comprehensive bike insurance plan that is best suited for your needs. You must take into consideration factors such as the Insured Declared Value of the Bike, coverage for accessories and add-ons like return to invoice, engine protection, Nil depreciation and so on.
- Buying a comprehensive bike insurance is like taking care of your inanimate baby “bike” after it is born. Many people believe that buying a comprehensive insurance policy makes you lose a large sum of premium amount every year and it is actually of no use. At times, you may never face an accident.
- If you are ultra confident of your driving skills, buying a comprehensive insurance cover for your bike seems like a waste of money. But don’t forget you would be missing out on complete protection and discounts as no-claim bonus, which make comprehensive insurance a good return on investment in the event of a major accident.
- If you live in an area where both population and traffic are dense, then buying a comprehensive insurance cover makes sense. Else, you can do with only the mandatory third-party liability cover.
- If you have bought the latest bike with high-end features, buying a comprehensive insurance policy is good for you. If your bike is of an old model and an ordinary one, you can do with a mandatory third-party liability policy.
If you think you are not accident-prone and are a safe driver, declaring a higher deductible will be of advantage to you under your comprehensive insurance policy; but always make sure that deductibles don’t become a financial burden on you. So, choose your bike insurance policy smartly and make yourself feel like a hero when you ride on it!
3 Mistakes in Bike Insurance Plans that Make you Look Dumb
- Premium: Before buying a comprehensive bike insurance, what most people worry about is the premium. They fail to look at the overall picture and end up buying a lower-priced policy after comparing policies of many companies. What they forget to do is check the features of the policy and reputation of the insurance company.
- The fine print: If you think it is the sole responsibility of the insurance advisor to guide you and make decisions on your behalf, you’re wrong. It is your own responsibility to read the fine print and take decisions accordingly. If you ignore reading the insurance document, assuming everything is understood, then you risk taking a wrong decision. You need to understand each and every word that is written in the document, and it’s your responsibility to raise queries when in doubt or if something looks ambiguous. Sometimes, a minor misinterpretation of the language of the document, which mostly includes finance and insurance-related terms that are not easily understood by a layman, can make you buy a policy that is not in your best interest.
- Add-ons: Buying multiple add-ons to your comprehensive insurance policies that serve no real purpose but are just a burden on you, is another mistake you make while choosing a comprehensive insurance policy. If you are smart enough to understand what add-on works for you, buying just a few add-ons with your comprehensive policy is sufficient to fulfill your bike insurance coverage needs.
You need to look for both short-term and long-term benefits that your bike insurance cover provides you, thus lifting the financial burden from your shoulders. Make sure you act smart and avoid these mistakes while buying a bike insurance policy.