Riding is fun, especially if you are financially covered against the odds that increase your liability towards the bike or third party. Insurance is a financial product where the insurer takes care of the repair and replacement costs in case of an accident in exchange for a premium. However, like any other product, bike insurance is surrounded by several misconceptions; let’s debunk them.
Debunking Common Bike Insurance Myths
Here are eight common bike insurance misconceptions you may have heard:
Myth 1: Insurance is Optional
In India, insurance is not optional — it is mandatory. The Motor Vehicles Act of 1988 mandates that every two-wheeler owner should have at least third-party liability insurance.
Skipping insurance because you think it is unnecessary could lead to trouble in case of an accident. Additionally, traffic authorities will penalise you if you are riding without this coverage.
Myth 2: Third-Party Liability Coverage is Enough
As the name implies, this policy offers compensation when, while riding an insured bike, you hit other motorists or collide with a pedestrian, causing physical injury. It also covers damages to another person’s property or vehicle, with the insurer paying for repair or replacement costs.
But what if your bike is damaged and the repair cost is worth thousands of rupees? The insurer is not liable to pay a penny in this regard.
Myth 3: Premium Depends on Credit Score
You are not applying for a loan, so don’t stress too much. The premium for a two-wheeler is based on the bike’s make and model, place of registration, and the add-on covers you have purchased.
For example, your bike is registered in an area where earthquakes are common. In that case, the insurer may levy a higher policy premium as the chances of a claim arising from damage due to natural calamities are higher.
Similarly, if you own an imported bike whose parts are difficult to find in India, the insurer will charge a higher premium to insure such a two-wheeler.
Myth 4: Each Add-on is Important
When you buy bike insurance, especially through an agent, they might convince you to purchase all the riders available with the insurer. Some common riders include roadside assistance, zero depreciation cover, and accessories cover.
Suppose you live in a metro city where bike repair shops are easily available every 500 metres, you may skip roadside assistance to save on premiums.
Myth 5: Claiming Insurance is a Hassle
Many people are discouraged from filing claims because they perceive them as long and tedious. However, insurance companies have simplified the process with online portals, mobile apps, and quick approvals.
Whether you want to proceed with a cashless or reimbursement claim, you must inform your insurer, share a short video clip or images through the bike insurance app showing the damage your bike has sustained, and proceed with the repair works. The insurer will release the funds directly to your bank account or the garage’s account, depending on the claim type.
Myth 6: Single-Year Policies Are Better
You might have heard people saying a single-year policy is a better and cost-effective solution compared to long-term plans. But this is not always the case. You might not be aware that the cost of comprehensive bike insurance is split into two parts. One portion goes towards the premium for third-party liability cover, and another portion goes towards the own damage bike protection cover.
The IRDA decides the cost of the liability cover and reviews it every year. Depending on market conditions, they can hike the premium. However, with a long-term plan, you are protected against premium hikes.
Myth 7: You Can’t Switch Insurers Midway
Contrary to popular belief, you can switch insurers even if your policy is still active. If you are dissatisfied with the coverage or service, porting your policy to another insurer is a viable option.
Many insurers offer attractive benefits to new customers, such as better coverage or add-ons. So, research your options and choose a provider that meets your needs.
Myth 8: Older Bikes Don’t Need Insurance
If you assume that older bikes don’t require insurance, as their lower market value makes them less important, think again.
First, third-party liability coverage is a mandatory requirement. Second, accidents can occur regardless of your bike’s age.
Conclusion
Two-wheeler insurance is not only a legal prerequisite but a safety net that safeguards you against unforeseen financial burdens. Believing in myths can leave you underinsured or, worse, uninsured, exposing you to significant risks.
