Reasons to renew an Expired Two Wheeler Insurance Policy?
It is mandatory for two-wheeler owners to keep their bike insurance policy documents at all times and on their scooters, a bike or motorcycle insurance plan also offers coverage for the owner of the policy against financial losses due to damage, theft, or loss as well as the required protection for damages or injuries caused from a vehicle of a third party or property owned by a third party.
Two-wheeler insurance plans also provides accident insurance for the driver or owner of the two-wheeler insured. It’s not just mandatory to have a two-wheeler plan, but also provides the policyholder insurance against financial losses which they may incur. This is why it is essential for owners of two-wheelers to have their insurance renewal before the expiration date. The reason for this is that a defunct two-wheeler insurance plan will provide no financial protection for the above-mentioned risks which the insured party may be liable for.
If a bike owner is caught using their bike without having an active insurance plan for two-wheelers and is fined up to 1,000 rupees. 1,000 or a sentence for up to 3 months, or both, could be handed down through the agency that enforces under the Indian Motor Tariff Act. Additionally, in addition to the legal obligations, a policy holder will also lose any accrued benefits, in the form of NCB which is also known as the No-Claim Bonus, in the case failure to obtain their insurance renewal on two wheels within the stipulated time. It can be a lengthy procedure to renew a expired two-wheeler insurance policy.
Factors that Affect Bike Insurance Costs For Two Wheelers
The cost of insurance for bikes is set by insurance companies based on the results of various elements. These factors are as follows:
1. Type of coverage– There are a variety of kinds of insurance for two-wheelers in India including a third-party bike insurance policy as well as a standalone, own-damage bike insurance policies, and a comprehensive bicycle insurance policies, cost of which differ from one another. A comprehensive bike insurance policy provides greater coverage, therefore its cost is more expensive than the other types of policies. However, lower rates should not be the only thing in deciding whether you should purchase the bike insurance policy or not. It is advised to purchase an insurance policy that covers all two wheels. policy because it offers higher advantages.
2. The type of two Wheeler and Its Cost– As the costs of various scooters or motorcycles differ, so do the insurance rates for the two. One of the aspects insurance companies take into consideration when determining the cost of insurance for bikes is the capacity of the motorcycle. If the engine has a greater capacity, engine, the higher rates you’ll be expected to cover for the two-wheeler insurance policy.
3. Modifications to Two Wheeler – There are plenty of two wheeler enthusiasts who think about modifications to improve the look of their bikes and improve their performance. If your bike has been modified, you’ll be required to pay greater premium to cover the modifications, as well.
4. Specifics of The Rider– The cost of your bicycle insurance policy is also determined by your age, history of riding, and gender. If, for instance, you’re aged 35 and have had a ride that is more than a decade you’ll pay less than someone aged 20 years old. This is due to the fact that a aged person of 20 years is at a greater risk to insurers.
5. Additional Covers– Add-on Covers offer more coverage, which means you will have to pay a higher price for a two-wheeler insurance policy when you incorporate additional coverage under them. It is not required to purchase additional covers but they are highly recommended for increased coverage. Common add-ons that you can include to your insurance policy for bikes include zero depreciation insurance and return to invoice roadside assistance and more.
6. Anti-Theft Equipment– Anti-theft devices give protection for your two-wheeler and reduce the risk of suffering any losses. Because they reduce the liability of the insurance company and therefore, you’ll have to pay less in the event that you own an ARAI-approved anti-theft gadget installed on your bike or scooter. Therefore, it is suggested to install anti-theft equipment on your motorcycle, not just to ensure it is protected but also to ensure that you are able to purchase an insurance policy for your bike at lower costs.
7. Vowdly Excess– In the case of bike insurance there’s a compulsory excess as well as the voluntary excess. In the case of mandatory excess, you are obliged to pay a certain amount of the repair cost out of your pocket in the event there is a claim, while insurance companies will pay the remainder. It is fixed and the percentage cannot be changed or reduced. In the case of an option of voluntary excess, you will be allowed to alter it prior to the date of the buying the policy. Since this option reduces the liability of the insurer and therefore you’ll be charged less for this option.
8. Zero Claim Benefit– If you’re renewing your insurance for two wheels and didn’t have a claim in the past year, you’ll be rewarded by the insurance firm in the form”No Claim” Bonus. The amount of the bonus could range from 20-50% over a period of up to five years and will lower your premium for bike insurance by a significant amount.