We are living in the era of technology and it is not a big task to purchase two-wheeler insurance. Open a website or app of the company, after a few clicks your insurance is ready.
But question is that have you purchase perfect bike insurance or you have done some mistakes while buying it.
Considering all the risks and factors it is very important to purchase bike insurance with utmost care.
But due to lack of knowledge and or time, some people just buy the insurance without any proper workout. Later when they face reality then realize their mistakes.
Below are some mistakes which common people do when they buy two-wheeler insurance.
Table of Contents
- 1 1- Not Doing Any Homework and Comparison Before Buying Two-Wheeler Insurance
- 2 2- Not Claiming NCB
- 3 3- Searching for Cheaper Premium for Two-Wheeler Insurance
- 4 4- Not Transferring Previous Two-Wheeler Insurance
- 5 5- Buying Only Third Party Insurance
- 6 6- Choosing Wrong Policy Tenure
- 7 7- Providing Wrong Vehicle and Personal Details
- 8 8- Not Providing Correct Hypothecation Details
- 9 9- Claiming Wrong NCB
- 10 10- Not Choosing Right Insurance Company
- 11 11- Not Reading Policy Wordings
1- Not Doing Any Homework and Comparison Before Buying Two-Wheeler Insurance
Prevention is better than cure is true in terms of buying two-wheeler insurance also. If you do proper planning and homework before to purchase then there are very less chances that you do any mistake.
But most of the time you just do few click and purchase the policy without any research.
You should avoid this mistake because buying bike insurance is a very important decision of yours. You should do a proper comparison and homework before you buy the insurance.
2- Not Claiming NCB
As you may know that insurance companies provide No Claim Bonus (NCB) for every claim free year in your insurance policy. You can accumulate up to 50% NCB in your policy.
But sometimes you forget to claim your No Claim Bonus. Due to that you pay a high premium for an insurance policy.
It is very common that your policy gets expired if not renewed on time. But do you know that you can claim your NCB even policy has expired?
Yes, it is true if your two-wheeler insurance policy has expired and you renew it then also you can claim your no claim bonus. The only condition is that the expiry date of the insurance policy should not cross 90 days.
Means if you are renewing your policy within 90 days of the expiry date of the policy then you can claim your no claim bonus.
3- Searching for Cheaper Premium for Two-Wheeler Insurance
This is one of the mistakes which you do most of the time. You should give preference to the better policy not cheaper price. You should not do compromise with the features and benefits of the insurance.
But sometimes you buy the policy because of the cheaper price only and you don’t check the benefits available. Suppose you have two options: –
Option A: Policy with cheaper price
Option B: Policy with good features and benefits with reasonable premium
What option will you select? In my view you should select option B. Try to get minimum premium but you should also try to find out the maximum benefits.
4- Not Transferring Previous Two-Wheeler Insurance
Purchasing a second-hand bike is very common in India. Some people buy the used bike and do the transfer of bikes in the name of the new owner. But they forget to transfer the insurance in the name of the new owner or do not purchasing new insurance.
They understand that previous insurance is enough. But it is not true. The name of the new owner should be the same on insurance paper and new RC.
If a vehicle is transferred but insurance is not transferred in the name of the new owner then the company may not pay any claim. You should always avoid such kind of mistakes.
5- Buying Only Third Party Insurance
I can understand that you have your own budget and buy two-wheeler insurance according to your choice. However you can purchase comprehensive insurance by paying only little additional premium.
As per the Motor Vehicle Act, the Third-party insurance mandatory and some people buy only a third-party. But what if your bike gets damaged in an accident or stolen by somebody. This can be a big financial loss for you.
If comprehensive insurance is available with very competitive pricing then why not opt this. By opting comprehensive policy, you can take the coverage of third-party and own damage as well.
6- Choosing Wrong Policy Tenure
Insurance companies offer one year and multi-years policy in India. In my view, you should opt for long term bike insurance because you can get more benefits than a one-year term policy.
Most important, some people forget to renew their policy every year on time. Long term policy is best suitable for them. You may also get some extra discount on long term policy.
However ultimately it is your choice which policy is best suitable for you. You should compare at least once between long term and one-year policy.
7- Providing Wrong Vehicle and Personal Details
Sometimes intentional or non-intentionally you provide wrong details to your insurance company. This can be a big financial loss for you that you do not provide correct and vehicle details.
If you are giving wrong details for the above then claim may be delayed or rejected.
Always double check your details in the policy documents. So that you do not get any problem later on claim process
8- Not Providing Correct Hypothecation Details
When you buy two-wheeler insurance then it is a must to provide the details of the hypothecation of the vehicle if any. But sometimes you forget to provide the same.
If your vehicle is hypothecated from any bank or financial institution then intimate in your policy while purchasing it.
9- Claiming Wrong NCB
If you have taken any claim in the last policy period then please mention the claim status correct and do not claim any no claim bonus at the time of renewal.
You take an NCB discount only when you are eligible for it. So double-check that you are eligible for any no claim bonus discount or not.
If you have taken any wrong no claim bonus discount then the company will send you a recovery letter to collect the amount. If you do not pay then the company may cancel your policy and or reject the insurance claim of the vehicle if any in the future.
10- Not Choosing Right Insurance Company
Do you think you should check about insurance company also? What is the company reputation in the market and what is the claim settlement ratio?
Of course, you should do it. Select the best company because it is the company that is going to pay you the claim at the time of any incident of the vehicle.
11- Not Reading Policy Wordings
This is also one of the important mistakes which we usually do. Why we don’t read policy documents. There may be many people who just buy an insurance policy and keep it. They never open it to read at least once in detail.
In my view you should always read your policy wording at least once in detail. If you find any incorrect details then you should endorse it on a priority basis.
It will give you the full details of the policy. You will know the coverage details. You can also read the exclusion list and Terms & Conditions of the insurance company.