Why Get Your Bike Insured?

Premium is the Most Important Aspect of a Policy and These are the Factors Which Affect it

• Insured’s Declared Value (IDV) - IDV is the maximum amount that you will receive from the policy at the time of a claim. This sum is decided upon when you first took the policy. IDV is calculated by considering the fair price value of the two wheeler, the brand and model. The standard depreciation rates are reduced to get the final figure. For example, if the bike is not more than 6 months old, the depreciation value for IDV calculation is only 5%. If it is between two and three years old, the depreciation value would be 30% etc.
• Cubic Capacity (CC) - With the increase in CC of two-wheelers, there would be an obvious increase in premium. Minimum sum insured for a two-wheeler below 150 cc is Rs. 5000, between 150 and 350 cc is Rs. 6000 and 350cc & above is Rs.7000. These are the figures according to India Motor Tariff.
• Geography - The India Motor Tariff divides the country into two parts: Zone A and Zone B. Zone A includes cities like Bangalore, New Delhi, Mumbai, Chennai, Ahmedabad, and Kolkata. Zone B includes the rest of the country. The premium rates are higher in cities falling under Zone A as compared to Zone B.
• Vehicle Age - The older your vehicle, the more you pay as premium to maintain it.
• Discounts - How do you manage to get discounts on the premium? Maintain a good credit score, become a member of the Automobile Association of India, and install an anti-theft device to get a discount on your premium. Additionally, you will be eligible for a no  claim bonus if you do not make any claims during the policy term.

Claim Processing

How do you take the claim when something bad happens? As soon as the incident happens (like an accident), you should contact the insurance company and inform them about it so that they can take the steps to settle the claim. These are the two situations under which you can make a claim:

Total Loss/Constructive Total Loss (TL/ CTL) in a two-wheeler policy : CTL is when the aggregate cost of repair and/or retrieval of the vehicle is more than 75% of the IDV. If this happens, the insurance company will offer the IDV amount after deducting the depreciation cost.

Theft/Stolen Vehicle: If your two wheeler happen to get stolen, the first step is to register an FIR (First Information Report). A copy of the FIR needs to be submitted to the insurance company. You may need to transfer your ownership to the insurance company by using title certificate. You will not, however, get any claim if your bike is recovered.

It is just the smart thing to do to get an insurance policy for your bike. So don’t think of it as money down the drain. It is an investment because misfortune could fall upon anyone, anytime.