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, and after a few clicks your insurance is ready. But the question is, have you purchased the best two-wheeler insurance or you are doing some two wheeler insurance mistakes?
Considering all the risks and factors it is very important to have two wheeler insurance with utmost care. But due to lack of knowledge and or time, some people just buy the insurance without any proper homework and plan. Later when they face reality they realize their two wheeler insurance mistakes. Below are some two wheeler insurance mistakes that you should know.
1- Not Doing Any Homework and Comparison
Prevention is better than cure is true in terms of buying two-wheeler insurance also. If you do proper planning and homework before buying it then there are very less chances that you do any two wheeler insurance mistakes. You should not avoid it 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 a 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 may 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. This 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. You should keep your previous year’s policies and should not do such kind of two wheeler insurance mistakes.
3- Searching for Cheaper Premium
This is one of the common two wheeler insurance mistakes in the market. You should give preference to the best policy, not only to the cheaper price. You should not compromise 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 a cheaper price
Option B: Policy with good features and benefits with a reasonable premium
What option will you select? In my view, you should select option B. Try to get the 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 a used bike and transfer 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 purchase 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 the 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 kinds of two wheeler insurance 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 a little additional premium.
As per the Motor Vehicle Act, Third-party insurance is 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 for this? By opting comprehensive policy, you can take the coverage of third-party and own damage.
6- Choosing the Wrong Policy Tenure
Insurance companies offer one-year and multi-years policies 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 and long-term policy is best suitable for them.
You may also get some extra discount on a 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 policies.
7- Providing Details
Sometimes intentionally or non-intentionally you provide the wrong details to your insurance company. This can be a big financial loss for you if you do not provide the correct vehicle details. If you are giving the wrong details for the above then the claim may be delayed or rejected.
Always double-check your details in the policy documents. So that you do not get any problems later on in the claim process. If you are proving incorrect details in your policy, it may be one of the most problematic two wheeler insurance mistakes.
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 or you don’t understand that it is important to provide this detail. If your vehicle is hypothecated from any bank or financial institution then intimate in your policy while buying the policy.
9- Claiming Wrong NCB
If you have taken any claim in the last policy period then please mention the claim status correctly and do not claim any no-claim bonus at the time of renewal. You should take an NCB discount only when you are eligible for it. So double-check whether you are eligible for any no-claim bonus discount or not. If you are taking the wrong NCB discount, it may be one of the biggest two wheeler insurance mistakes.
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 Reading Policy Wordings
This is also one of the common two wheeler insurance mistakes. 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 it 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 should know the coverage details. You can also read the exclusion list and Terms & Conditions of the insurance company.
Conclusion – Two Wheeler Insurance Mistakes
While buying a two wheeler insurance policy, you should understand its importance. It is not just a piece of paper. You should avoid such common two wheeler insurance mistakes and have the best policy. I hope you like this article and was helpful for you.