When purchasing a new vehicle from a showroom, it’s mandatory to obtain insurance as per IRDAI norms, which apply to all. Generally, long-term insurance is available for up to five years.
However, many owners fail to renew their policies once the initial insurance period ends. Only 19% of two-wheeler owners in India renew their insurance after the first policy expires.
Adhere to government regulations and ensure the vehicle is insured. Renewing insurance after the initial period is crucial. Two-wheeler insurance can be renewed online or through online marketplaces.
Here are some key points to consider when getting insurance:
Types of Insurance: a. Third Party Insurance: This compensates someone other than the vehicle’s driver in the event of an accident, covering physical injuries, property damage, and death, but does not include damage to the insured vehicle.
b. Comprehensive Insurance: This covers damages caused by accidents, theft, flood, fire, natural calamities, and third parties.
Coverage: When choosing an insurance policy, assess the total coverage required based on the vehicle’s value. Opt for comprehensive insurance for complete safety in case of any unexpected accident, even if it’s done through a third party.
Insured Declared Value (IDV): IDV is the maximum compensation the company will pay if the vehicle is seriously damaged or stolen. It reflects the current market value of the vehicle, which gradually depreciates after the purchase.
Claim Settlement Ratio (CSR): It’s essential to know insurance companies’ claim settlement ratios. A higher ratio is preferable.
Additional Services: Some companies offer roadside assistance for a certain fee at the time of insurance, which is useful for safely towing the vehicle to a service center after an accident.
Additionally, some companies provide premium discounts for the following year if there are no claims during the insurance renewal year.
Policy Details: Opt for a policy covering vehicle repairs without requiring out-of-pocket cash. Repairs should be free of charge at the insurer’s network garages.
Before choosing an insurance company, it’s important to know where these network garages are located in your area.