Why timely renewal of two wheeler insurance is important?

Two wheeler insurance is probably the most neglected vehicle insurance category. While new bikes sold do hit the road witih insurance provided by the dealer during initial purchase, majority of the bike owners do not bother renewing their insurance. Even for insurance agents it is not an attractive proposition as premium is low (thus so will be their commission). Instead of chasing bike owners the agents find it more profitable to follow up with other types of insurances where premium is higher.
If you’re a two wheeler owner, not renewing your insurance is not really a good idea. Below are the reasons why you should not ignore it.
1 Taking unnecessary risks: Using a two wheeler without insurance means that the owner will have to bear 100% of the expense/loss in the event of theft, damage, accidents etc. If your bike is stolen or you suffer a major damage, you will probably regret your decision of not having purchased an insurance for your bike.

2 Peace of mind: Insurance premium for a Rs. 70k worth bike will be at around Rs 1000 , about 1-1.5%. Long term (2 year/3 year) policies will work out even cheaper. Thus spending a very small amount might be a wise decision than attempting to save this small amount and risk full value of the bike. 

3 Legal requirement: Vehicles operating on Indian public roads are required to have 3rd party liability(3PL) insurance by law. (Comprehensive insurance is recommended, but 3PL is the minimum mandatory legal requirement) If you’re not renewing your insurance, in all probability you will end up paying fine when caught by traffic police. In a year if you’ve to pay fine 3-4 times, fine amount will exceed what you’d have paid as premium.

4. Renewal of two wheeler insurance is easy. If you’re thinking renewing your two wheeler insurance is time consuming process, you’re mistaken. You don’t have to go to office of an insurance company and fill complicated paperwork. It can be done online. Bike insurance online renewal hardly takes about 5 minutes (provided the existing policy is in force). Thus it is easier to renew your policy online before it expires. (Post expiry physical inspection will be needed)

5. Claim when you have to: What is the point of having an insurance policy if you never get to claim it. If your bike or two wheeler suffers damage due to rain or flood, which is very high possibility in most cities today, claim the repair expense from insurance company. Most service centres will have cashless facility. While some companies try to reject the claim citing various excuses or delay the process demanding more paperwork, companies like Bharti AXA claim to have a more streamlined and efficient two wheeler insurance claim process. (Have you seen their TV ad? If not check out on YouTube).

6. Option to declare lesser value (IDV): It is possible to reduce your premium by insuring the vehicle for lesser value. Assume your bike was worth 80k when you bought it 2 years ago. Now its current market value will be about 60k. IDV or insurance declared value can be anywhere between 25000 and 50000. If you chose a lower value your premium will be less but your risk will be higher- in case of total damage or theft you will only get the value you’ve declared.
Remember that there’s a concept of no claim bonus. If you’ve not claimed any damage throughout the insurance period, during the  renewal of your bike insurance policy, the company will give you a small discount. 

If you (or anyone else in family) have a two wheeler, ensure that it is insured. Safe riding.

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