The easiest way to protect your bike against losses that occur due to an accident or for any other reason is by purchasing two wheeler insurance. Not only will it protect you from unexpected expenses but also help comply with the Motor Vehicles Act, 1988 which states that third-party motor insurance is mandatory in India.

Nevertheless, many first timers get confused regarding two wheeler insurance policies and make a wrong choice. This can cause problems with an insurance claim. It is better to understand and compare various policies before purchasing one.

Here are some points that need to be considered before settling on a two wheeler insurance policy especially for those who are buying it for the first time:

1. Types of Insurance Policies

At present, there are two types of vehicle insurance policies available in the market: Comprehensive and Third Party. As mentioned before, the Motor Vehicles Act, 1988, makes it compulsory for vehicles to have at least third party insurance.

A comprehensive two wheeler insurance plan will help secure your bike against any risk arising out of theft, damage to the vehicle or accidents along with personal accident cover for the owner-driver.

While third party insurance will only provide cover for the damage done by your vehicle to a third party’s property or vehicle, and not for theft or damage to your own vehicle.

2. Premium rates

The policy premium is affected by a number of factors, among them, cubic capacity (CC) is the prime factor. As per the India Motor Tariff, there are three categories: 0-150 CC, 150-350 CC, and 350 CC and above. The policy premium will depend on the category your bike belongs to. Which means higher the engine capacity, the more will be the policy premium. Location is another important factor that will affect the premium calculation. There are two zones: Zone A and Zone B. Areas under Zone A comprise of metropolitan cities and hence attract a higher premium than the areas under Zone B. Use a two wheeler insurance premium calculator to know your estimated premium rates.

3. Insured Declared Value (IDV)

In easy terms, IDV is the current market value of the vehicle. The Insured Declared Value (IDV) is the maximum amount that can be claimed on insurance in case of total loss or theft. Generally speaking, Insured Declared Value decreases as the age of the bike increases.

4. Riders in insurances

If your current policy coverage is not enough for you then you can extend the coverage of your two wheeler insurance policy by opting to add riders to your existing policy. Riders are add-ons that can be added to bike insurance policies by paying an extra premium. Common riders include roadside assistance, personal accident cover, Zero depreciation facility, etc.

5. No Claim Bonus or NCB

NCB is an additional bonus which can be availed when you have a claim-free policy term. NCB is offered as a discount on the policy premium and up to a maximum of 50% NCB can be accumulated.

6. Claim Procedure of an insurance policy

A good two wheeler insurance policy is one that comes with the ease and efficiency of the insurance claim procedure. Check the insurance claim settlement ratio of the insurer to know about the efficiency of claim settlement.