A two-wheeler is the first step to convenience in mobility. It also removes dependence on crowded and unreliable public transport. A bike does not just help you in getting to work or running other day-to-day errands; it can also be a companion for your adventures. However, along with the fun and freedom, come unforeseen incidents like breakdowns and accidents that damage the bike.
To protect yourself and the bike under such circumstances, motor vehicle laws stipulate that you need a valid bike insurance policy to ride on the road. Two-wheeler insurance should compulsorily include third-party coverage but can also be a comprehensive policy.
But one question that most people are faced with is what happens to the insurance premiums after an accident. To understand this better, here is what you should know.
How does an accident affect your two-wheeler insurance?
If one meets with a bike accident, the rate of the bike insurance premium could increase, depending upon the kind and extent of damages. This is because any damage to the bike could be seen as a liability by insurance providers.
Different insurance companies have different terms and conditions, but this does not necessarily imply that your insurance premiums will rise exorbitantly.
In the event of an accident, an insurance company can increase the insurance premium by 20-40%, while others can also hike up the premium rate by 100%. On the other hand, some companies may choose not to raise the premium at all, if the accident takes place for the first time. This is possible in cases where the damage caused to the two-wheeler is minor and the driving record of the owner is untainted.
However, there are some companies that may raise the bike insurance premium at least by 10%, even in the case of a small first-time accident.
Another important consideration an unfortunate accident brings in is the inclusion of a personal accident cover in the bike insurance policy. Under the personal accident cover, the insurer provides monetary compensation in case of death or permanent disability of the owner-driver due to an accident in which the insured vehicle is involved.
As per the IRDAI rules, every two-wheeler bike insurance policy should have a mandatory personal accident cover available for the owner-driver, the premium for which has been fixed at Rs 750.
How can you lower your bike insurance cost?
An accident, no matter how small or irrelevant, may impact the cost of your bike insurance premiums. However, here are a few ways in which you can lower the bike insurance cost:
- With the help of an online bike insurance premium calculator, you can research and explore different bike insurance policies online. Not only does this save a lot of time and effort but also offers you more options and helps you choose one that is cost-effective. An insurance calculator can be quite effective in helping you compare various policies and choosing one that gives your bike the right amount of coverage.
- Make it a point to purchase and renew the insurance for your bike online. Since online policy purchases negate the overhead costs of insurance representatives and stationery, insurance providers enable customers to avail of various discounts on the bike insurance cost. Additionally, one may also be able to avail of loyalty points and related discounts if they have been renewing their insurance policy with the same insurance company for a while. Tata AIG bike insurance offers a seamless online purchase and renewal process.
- No matter how comprehensive your bike insurance may be, there will be very specific damages that your policy will not be able to cover. It is for this purpose that including relevant add-ons to your two-wheeler bike insurance policy can be a wise move. These add-ons provide coverage to your vehicle for an additional premium but help in lowering the insurance cost in case of serious damages.
- You can make use of the No Claim Bonus discount if you successfully clear the policy year without filing a claim. This discount is a benefit offered by the bike insurance company on the policy premiums if a policyholder manages to avoid filing damage claims during each policy year and the maximum discount one can get on their insurance premiums is 50%.
Reducing your bike insurance cost, however, should not be a risky decision; ensure that you choose the IDV (Insured Declared Value) carefully as it determines the insurance coverage amount for your two-wheeler. To save on your bike insurance premiums, the points mentioned above can effectively serve the purpose.
Claiming Bike Insurance after an Accident
If your bike meets with an accident, here is what you can do to file a bike accident insurance claim.
- Do not panic after the incident. Notify the insurance company immediately or within the time stipulated under the policy.
- In case of damage to your insured two-wheeler or the loss/theft of the vehicle, be sure to file an FIR. This is a mandatory requirement that will help in speeding up the claim process.
- The damage to your vehicle will be assessed by a surveyor appointed by your insurance company. This representative will prepare a report of the damages and hand a copy to you as well as your insurance provider so that you can know the extent of the damages.
- The last step involves making the payment to initiate the claim procedure. All the relevant documents such as the insurance policy, the tax receipts, bike registration certificate, a copy of the FIR and the driving license will have to be presented.
The financial impact of a bike accident can be effectively reduced with the help of a bike insurance policy. Therefore, not only is it important to understand how bike insurance can help you financially in such emergencies but also how these events can affect your bike insurance policy.
