Purchasing a two wheeler insurance policy may seem like a fairly straightforward endeavour, but customers still make common mistakes that can be so easily avoided. Following are five of the most common errors made when purchasing a two wheeler insurance policy:
Transfer of policy when purchasing second-hand vehicle
Purchasing a second-hand vehicle is fairly common in India. However, most people who purchase a second-hand two wheeler make the common mistake of forgetting to get the insurance transferred. In such a scenario, the new owner of the vehicle as well as the vehicle will be uninsured, thereby breaking the law. If you purchase a second-hand vehicle, make sure you have the insurance transferred to your name, or purchase a new insurance policy to avoid unnecessary penalties.
Many two wheeler owners don’t even realise when their insurance policies expire. As a result, they ride the streets with zero coverage. Failure to renew your two wheeler insurance policy is not only a legal offence, but can also leave the door open to unnecessary fines and penalties. Most two wheeler insurance policies expire within a year, so make sure that you renew it before it lapses to avoid legal complications.
Preservation of No Claim Bonus
In case you have been driving safe and have not met with any accidents over the course of a year, you will have no claims to make. As a reward for your diligence, the insurance company will provide you with a No Claim Bonus which essentially lowers your premium payment for the following year. In case your two wheeler was sold during the year, your No Claim Bonus can be protected by preserving your policy document. The bonus will be yours even if the bike is now in someone else’s possession.
Selection of the Correct Insured Declared Value
IDV, as it is known in its abbreviated form, the Insured Declared Value is basically the maximum sum assured that the insurance company agrees to reimburse to the owner of a vehicle in case of its theft or loss. It is essentially the current market value of the two wheeler, and is calculated depending upon the present value and depreciation rate offered by the manufacturer after taking into consideration the age of the vehicle.
Delay in Intimation of Claims
The insurance company must be intimated about any claim immediately after an accident or damage or loss of your vehicle. Most companies require their customers to file an intimation between 24 and 48 hours after the vehicle met with the accident. Delay in intimating the company could lead to the rejection of a claim.
These are some of the most common errors that people make with regards to their two wheeler insurance policies. Make sure that you read through the policy document and gain a thorough understanding about your policy as it will facilitate a smooth and relatively hassle-free claims experience.