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Insurance Article

Bike Insurance An Important Approach

October 03 2013
Bike Insurance - An Important Approach

For traffic congested roads, a bike is well suited to move while providing an affordable alternative to cars. In other respects, bikes today are designed to ply on the high traffic roads as well as on the free highways.

Naturally, the wear and tear of a bike is manifold as compared to cars or any other multi-wheel vehicle. And today as there are better insurance options, Indians are understanding that even a low value asset such as a bike can be beneficial.

Again, bikes can also develop serious complications if care is not taken, which can worsen with poor condition of roads. In such situations, there will be a need to repair the vehicle at the earliest. Damage in suspension or engine can be expensive and having cash or help at hand will make it easy to repair in a short time span.

A bike insurance plan, thus, not only reduces time but also saves some direct and indirect costs. If you are passionate for high-powered costly bikes, you may find it tougher to arrange for the money in case there is a big complication. Insuring the bike will support any repair work due to an accident, third party losses, and natural or man-made calamity.

Bike insurance is increasingly popular as more cities are growing rapidly to ease transportation for different earning needs. A daily commute for more than hundred kilometres a day is financially beneficial for a car. The alternative that a bike provides, is better and easy on the wallet.

A Third Party Liability insurance for all motor vehicles is compulsory in India. Most bikes are insured from dealer point only if not specifically restricted and arranged for the alternative. This can be from insurance agents who are still significant in their contributions in renewals and new insurance policies.

The renewal of insurance is one matter that needs to be given some serious thought. It has been observed that most people only take up bike insurance for the first time and ignore the policy renewal date. Once they are reminded of their expired policy is when some people renew, while it is altogether forgotten by others.

Most insurance companies remind their customers to renew their policies by sending the renewal forms through emails, calls and SMSs. These only need the customers to fill up the form and submit it. This is a huge leap in the advanced development of insurance as a large population is now protected against financial difficulties due to unexpected calamities. India is moving ahead despite several obstacles and there is hope that situation of borrowing and making out of pocket expenses will dissolve in the coming years.

Some of the other issues that should be considered are the first amount that an insured pays to get the insurance. Known as the premium, it can be observed that several companies have different prices for the same product.

This means, a company that charges lower premiums may have lesser features or benefits offered under the coverage. Thus, it is prudent to understand the features, benefits, add-ons and exclusions mentioned in the policy wordings to make an informed decision while buying bike insurance.

However, as an aware customer, it is our duty to make sure such comparisons are fair in nature. It is crucial to not be manipulated by insurance agents or insurance companies to buy a cover that you don’t need. You can always avoid being misled by checking any feature at website of the Insurance Regulatory and Development Authority of India (IRDAI).

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