According to the Motor Vehicles Act of 1988, you must purchase third-party bike insurance to ride your bike in India legally. Without valid insurance, you may have to pay a fine of up to Rs. 2,000 and/or 3 months of imprisonment.
Hence, if your bike’s insurance has expired, you must renew it immediately to avoid hefty fines and ride legally. However, considering several factors is crucial when renewing your bike insurance plan. In this blog, we will discuss the key factors you must consider during the bike insurance renewal process.
7 Key Factors to Consider During Bike Insurance Renewal
Although it is mandatory to buy bike insurance, you must get one to protect yourself financially and legally during any unfortunate events. If your bike insurance has expired, you must consider the following factors during the insurance renewal process:
- Examine the New Policy
As your bike gets old, you must change the bike insurance plan’s features and coverage options accordingly. You must check whether the policy specification aligns with your insurance requirements. For instance, ACKO bike insurance enables you to renew your existing bike insurance at an affordable premium and aligns with your desired insurance requirements.
- Compare the Plan Varieties
When renewing your bike’s insurance, analyse whether the coverage is comprehensive. You can compare the features and coverage options the other insurance companies offer and determine the variations. It will help you choose the plan that offers extensive coverage at an affordable rate and according to your insurance requirements.
- Consider Opting for Add-Ons
Another crucial factor to consider when renewing your bike insurance is to assess the coverage you receive in your basic plan. You can opt for add-ons to receive extra coverage, as they offer greater protection than your basic plan. For instance, you can opt for add-ons, like zero depreciation cover, roadside assistance, key loss cover, etc.
- Look for No Claim Bonus
No claim bonus is the discount you receive on the bike insurance renewal if you have not made any claims during the policy tenure. You can get this benefit if you renew your bike insurance within 90 days of its expiry. However, if you apply for bike insurance renewal after a long timeframe, you can utilise the accumulated no-claim bonus discount.
- Assess the Insured Declared Value
Insured Declared Value (IDV) is the overall value of your insured bike that the insurance company determines to reimburse in case of an unfortunate event. It gives an approximate market value of your insured bike. Hence, ensure the IDV detail is correct and the insurance company is offering you financial coverage according to your bike’s value.
- Look for Network Garages
Another key factor to consider when renewing your bike insurance is assessing the insurer’s network garages. It refers to the garages having tie-ups with your preferred insurance company, where you can repair the damages to your bike using the cashless claim facility. The insurance company will pay the garage directly on your behalf, enabling you to save money.
- Correct Your Details
One of the crucial things you can do when renewing your bike insurance is correcting or changing your information. For instance, if you have shifted to a new place, you must change the address in your bike insurance plan. Hence, bike insurance renewal allows you to change or correct the information easily.
What are the Benefits of Bike Insurance Renewal?
Although bike insurance renewal is mandatory, there are several benefits you can receive when you renew your bike insurance. Here are a few benefits of bike insurance renewal:
- Financial Protection: When you renew your bike insurance, you get financial coverage in case of theft, loss or third-party liabilities.
- Third-Party Liability Protection: Your bike insurance renewal gives you legal and financial protection from third-party claims, such as property damage or injuries.
- Add-Ons Benefits: Opting for a bike insurance renewal allows you to include multiple add-ons in your basic plan to receive comprehensive coverage.
- Peace of Mind: One of the key benefits of renewing your bike insurance is that it gives you peace of mind, knowing that you are financially protected in case of an unforeseen event with your bike.
Final Words
Henceforth, opting for a bike insurance renewal is mandatory and crucial to receive financial and legal protection in case of any mishappenings with your bike. When you opt for bike insurance renewal, you can include multiple add-ons and opt for a different insurance provider offering comprehensive coverage at an affordable premium. In addition, you can utilise the accumulated no-claim bonus discount when renewing your bike insurance.
